Strategies of Unilever Bangladesh

BUS690.1 (Strategic Management)

Project Paper on 'Strategies of Unilever Bangladesh'

Submitted to

Mahmud Akhter Sharif (MDS),

Honorable Professor,
School of Business & Economics
North South University

Submitted By: Group-5

Student's Name Student's ID

Humaira Tasmin 2135485662

Doly Akter Joya 2225378660

Sadia Akter Nira 2235348060

Rezwana Tabassum 2135173660

Deadline: December 15, 2024

Length:
Strategies of Unilever Bangladesh

Table of Content
Strategies of Unilever Bangladesh

Acknowledgment

First and foremost, we would like to express our deepest gratitude to the Almighty for His
guidance and support in helping us navigate the challenges of our study and complete our
final project. We would like to thank Professor Mahmud Akhter Sharif sir for his invaluable
guidance, insightful advice, and patience throughout the semester and for always being
available to help with our study. His generous contribution of time and effort has been pivotal
in the success of our project and we are truly grateful for that. Our heartfelt thanks goes to
Samlan Rahman; the brand manager of Unilever Bangladesh, for providing us with a
detailed overview of Unilever Bangladesh and sharing the company's strategies that have
developed over the years to help achieve its goals. The research wouldn't be complete without
an internal expert's insights. Lastly, appreciate our fellow group mates who have been
nothing but helpful through collaborating and creative brainstorming which were essential in
bringing the study to fruition.
Strategies of Unilever Bangladesh

Executive Summary
Strategies of Unilever Bangladesh

Methodology

Introduction

Unilever PLC at a glance:

In the fast-moving consumer goods (FMCG) sector, Unilever PLC is a world leader
renowned for its wide range of products, creative business methods, and steadfast dedication
to sustainability. Founded in 1929, Unilever has its headquarters in London and works in over
190 countries. It provides billions of people a wide range of products in food, beverages,
personal care, and home care. Unilever's brand portfolio includes some of the world's most
Strategies of Unilever Bangladesh

well-known names. Well-known products like Knorr, Lipton, and others dominate the food
and beverage area, while Dove, Lifebuoy, and TRESemmé serve health, hygiene, and beauty
requirements in the personal care sector. Its broad popularity in homes across the world is
made easier by the home care division's usage of reputable brands like Comfort, Persil, and
Surf. Unilever appeals to a wide range of markets and customer tastes by balancing a mix of
high-end and reasonably priced items across its more than 400 brands. Unilever is well
known for its leadership in sustainability and social responsibility in addition to its business
success. The firm incorporates social and environmental objectives into its business strategy,
driven by its mission to "make sustainable living commonplace." Through programs like the
Unilever Compass, it aims to encourage renewable energy, cut waste, and reach net-zero
emissions. In addition, the business actively supports community development initiatives that
prioritize economic empowerment, sanitation, and health, especially in developing nations.

The foundation of Unilever's long-term success has been its capacity to adjust to shifting
market conditions. In order to meet changing customer demands for sustainable, digital-first,
and healthier experiences, the firm makes investments in innovation, digital transformation,
and consumer analytics. Its dedication to responsible leadership, diversity emphasis, and
ethical business practices all contribute to its improving image across the world. With a
unique harmony between profitability and mission, Unilever is one of the biggest consumer
products organizations globally. It is almost century-long journey reflects its persistence,
flexibility, and commitment to improving communities and consumer lives. [Retrieved from:
(Our company, 2024)]

Unilever Bangladesh:

One of the most significant international companies in Bangladesh is Unilever Bangladesh

Limited (UBL), a division of the world's largest FMCG Company, Unilever PLC. With a
production plant in Kalurghat, Chattogram, UBL was founded in 1964. It has since evolved
to become a major force in the consumer products sector. It is a well-known brand throughout
the nation, offering a wide variety of items in the food and beverage, home care, and personal
care categories to millions of homes. Internationally recognized brands including Lifebuoy,
Dove, Sunsilk, Lux, Surf Excel, and Knorr are part of UBL's product portfolio. These brands
guarantee quality and affordability by being specifically designed to meet the demands and
Strategies of Unilever Bangladesh

tastes of Bangladeshi customers. The organization incorporates innovation and sustainability

into its business processes to improve the lives of its customers.
In addition to its business successes, UBL has made a significant economic contribution to
Bangladesh. Through a vast supply chain and distribution network, it directly and indirectly
generates employment possibilities. Additionally, the organization is at the top of
sustainability and community engagement which involves projects like the Shakti Program,
which empowers rural women through product distribution, and the Lifebuoy Handwashing
Program, which promotes improved cleanliness. These initiatives show Unilever's dedication
to promoting responsibility for the environment and social advancement while upholding its
position as the FMCG industry leader. [Retrieved from: (Unilever, 2024)]

The vision of Unilever Bangladesh:

The vision of Unilever is "To make new sustainability normal". It aims to become an industry
leader in consumer products by promoting sustainable development and establishing
sustainable living as the norm in Bangladesh.
The firm wants to make sure that its business practices not only satisfy customers but also
have a good impact on society and the environment by incorporating sustainability in every
phase of its operation. [Retrieved from: (Unilever, 2024)]

The mission of Unilever Bangladesh:

Unilever's mission statement is "To make sustainable living commonplace". The aim is to
make sustainable living accessible to all by offering innovative products that are not only
affordable but also environmentally friendly. It also aims to create a positive social impact
and foster a healthier, more sustainable future for the people of Bangladesh. [Retrieved from:
(Unilever, 2024)]
Strategies of Unilever Bangladesh

Competitors of Unilever

Unilever Bangladesh Limited (UBL) competes with a number of domestic and international
businesses for market leadership in the fast-moving consumer goods (FMCG) industry. UBL
is up against those competitors in several product areas, such as food and drink, home care,
and personal care. An overview of Unilever's key competitors is detailed as follows.

1. Procter and Gamble (P&G):

P&G is a multinational fast-moving consumer goods company that competes with
Unilever in markets for personal care, household care, and grooming products.

Key Brands in Bangladesh:

● Pantene (competes with Sunsilk in hair care).
● Head & Shoulders (competes with Clear anti-dandruff shampoo).
● Ariel (competes with Surf Excel in detergent).

2. Marico Bangladesh Ltd. :

Marico is a well-known international company that specializes in personal care items,
including skincare, wellness, and hair oils.
Key Brands in Bangladesh:
● Parachute Coconut Oil (competes with Unilever's hair oil brands).
● Saffola (competes with Knorr in healthy food categories).
Strategies of Unilever Bangladesh

● Set Wet (competes in Axe men's grooming category).

3. Reckitt Benckiser:
Global health, hygiene, and home care firm RB compete with Unilever in a number of
markets, particularly in the hygiene product sector.
Key Brands in Bangladesh:
● Dettol (competes with Lifebouy in soap and hand wash sector).
● Harpic (competes with Domex in toilet cleaning solution).
● Veet (competes with Unilever's women's grooming products).

4. Square Toiletries Limited:

In Bangladesh, Square is a well-known local FMCG firm that competes in the
same industries including home care, baby care, and personal care.
Key Brands in Bangladesh:
● Chaka Detergent (competes with Surf Excel).
● Meril Soap and Lotion (competes with Lux and Dove).
● Sepnil (competes with Lifebouy in hand sanitization).

5. Globe Soft Drinks & AST Beverages:

These local beverage firms are close competitors in the food and beverage market,
particularly when it comes to ready-to-drink items.
Key Brands in Bangladesh:
● Frooto (competes with Lipton Ice Tea).
● Globe Jam (compete with Unilever's food sector).

6. Nestle Bangladesh Limited:

Unilever's food and health products are competitors of Nestlé, a worldwide leader in
the food and beverage industry.
Key Brands in Bangladesh:
● Milo (competes with Horlicks in Unilever's beverage sector).
● Maggi (competes with Knorr instant noodles).
● Nescafe (competes with Lipton Tea).
 Strategies of Unilever Bangladesh

7. Pran-RFL Group:
One of the top local corporations, Pran-RFL specializing in food, drinks, and personal
hygiene items is also a big competitor of Unilever.
Key Brands in Bangladesh:
● Pran Frooto (competes with Lipton Ice Tea).
● Pran Mustard Oil (competes with Unilever's edible oil sector).

SWOT Analysis of Unilever

Strengths -

o Strong Brand Portfolio: Unilever has a sturdy portfolio of recognized brands across
many categories, including Dove, Knorr, Lipton, and Hellmann's. These brands have
a high level of consumer recognition and loyalty.

o Global Presence: The company operates across over 190 countries, allowing it to
gain an advantage from economies of scale and access a wide range of markets.

o Research and Development: Unilever makes significant R&D investments, allowing

it to innovate and produce innovative products to satisfy evolving customer demands.

o Strong Distribution Network: A strong distribution network ensures extensive

product availability across multiple channels.

● Weaknesses -

o Complex Organizational Structure: Maintaining streamlined and effective

operations is challenging for Unilever because of its global operations and variety of
product lines.

o Price Pressure: Pricing and profit margins may be under pressure from fierce
competition from giant corporations.

o Regulatory Hurdles: Navigating various countries' regulatory frameworks can be

expensive and time-consuming.

o Brand Dilution: Adding new product lines under well-known brands can affect brand
equity and weaken their core identity.
Strategies of Unilever Bangladesh

Opportunities -

o Emerging Markets: Emerging markets present substantial growth potential for

Unilever's products, especially in Asia and Africa.

o Health and Wellness: Growing consumer interest in health and wellness allows
Unilever to create and promote goods in this area.

o Sustainability Leadership: By enhancing its sustainability efforts, Unilever can

obtain a competitive advantage and draw inefficient and environmentally conscious
customers.

Threats -
o Economic Downturns: Recessions in the economy can affect consumer spending
and, consequently, non-essential product sales.

o Currency Fluctuations: The profitability and competitiveness of the business may be

impacted by changes in exchange rates.

o Intensifying Competition: In the fiercely competitive consumer goods sector,

competitors always develop new ideas and products.

o Supply Chain Disruptions: Product availability and prices may be impacted by

worldwide supply chain disruptions brought on by pandemics or geopolitical unrest.
Unilever can maintain its success in the ever-changing global market by skillfully
managing its opportunities, threats, weaknesses, and strengths. (SWOT Analysis of
Unilever, n.d.)

Porter's Five Forces (Unilever in terms of Bangladesh) –

Strategies of Unilever Bangladesh

o Threat of New Entrants: (Moderate to Low)

Unilever has established a strong market position through its vast distribution
network, operational efficiency, and strong brand portfolio, which includes well-
known names like Lux, Lifebuoy, and Sunsilk. This strong foundation considerably
lessens the risk of new competitors.

o Bargaining Power of Suppliers: (Moderate)

Although suppliers have some bargaining power, Unilever's flexibility in sourcing
arrangements and ability to source raw materials from several suppliers limit this
influence.

o Bargaining Power of Buyers: (Moderate to High)

The relatively low switching costs limit consumers' ability to negotiate, even though
price sensitivity gives them some bargaining power and makes it easier to move
between brands.

o Threat of Substitute Products: (Moderate)

While some substitute products exist, their threat is limited due to consumer loyalty
towards established brands and Unilever's diverse range of differentiated products.

o Competitive Rivalry: (High)

Bangladesh's FMCG market is fiercely competitive, with many domestic and foreign
competitors. However, Unilever has a competitive edge thanks to its strong portfolio
of brands and market share. (Kissinger, 2024)
Strategies of Unilever Bangladesh

Specific Product Strategy (Pureit)

Pureit: A Pioneer in Water Purification in Bangladesh

Pureit by Unilever was one of the first innovative water purifiers introduced in Bangladesh,
addressing a critical need for clean drinking water in the country. In a nation where access to
safe water remains a challenge for many families, especially in rural areas, Pureit entered the
Strategies of Unilever Bangladesh

market with a clear mission: to provide safe, affordable, and convenient water purification
solutions for Bangladeshi households.

In Bangladesh, waterborne diseases like diarrhea, cholera, and typhoid are major public
health issues. Families often boil water as a traditional method of purification, but this
process can be time-consuming, costly (due to the use of gas or electricity), and not entirely
effective. Pureit provided a modern alternative by offering a range of water purifiers that
require no electricity or running water, making them ideal for both urban and rural
households. Over time, Pureit has become a trusted name, helping countless families access
safe drinking water, reduce health risks, and save money.

Data-Driven Strategy of Pureit in Bangladesh

→ What is data-driven marketing?

Data-driven marketing is about using information and insights from customer behavior,
preferences, and feedback to make smarter marketing decisions. Instead of guessing what
customers want, businesses like Unilever use data to create strategies that directly address
customer needs.

How Pureit uses data-driven marketing in Bangladesh:

Strategies of Unilever Bangladesh

In Bangladesh, Unilever collects information from surveys, social media, website visits, and
even customer service interactions to understand what people need and how they think about
clean water. Here’s how it works:

● Understanding customer pain points: Data shows that many households in Bangladesh
worry about the cost of water purifiers and the maintenance required. Unilever uses
this insight to promote Pureit as an affordable and low-maintenance solution.
● Regional targeting: By analyzing sales and interest levels across different regions,
Unilever identifies where people need Pureit the most. For instance, urban areas like
Dhaka may focus on convenience, while rural regions may prioritize affordability.
● Customer segmentation: Data helps Pureit understand different types of families—
those who value health benefits, those looking for cost savings, and those who want
convenience. Based on this segmentation, they design marketing messages that
resonate with each group.
For example, Pureit ran campaigns showing how much money families could save by
switching from boiling water to using their purifier. These ads were targeted at cost-
conscious families who were already looking for a better solution. Similarly, ads that focused
on health benefits were shown to parents concerned about their children’s safety.

Performance Marketing Strategy of Pureit in Bangladesh

→ What is performance marketing?

Performance marketing is about paying for results. Businesses only spend money on ads
when they lead to specific outcomes, like clicks, leads, or sales. This approach ensures every
taka spent on advertising delivers measurable value.

How Pureit uses performance marketing in Bangladesh:

Strategies of Unilever Bangladesh

Unilever runs performance-based campaigns to ensure their budget is spent efficiently.

Here’s how it works for Pureit:

● Google Ads: Pureit runs ads that appear when people search for terms like “best water
purifier in Bangladesh” or “affordable water purifier.” They pay only when someone
clicks the ad and visits the Pureit website. This ensures their ads reach people who are
actively looking for a solution.
● Facebook and Instagram ads: On social media, Pureit uses eye-catching visuals and
short videos showing how easy it is to use their purifier. These ads target parents,
homemakers, and young professionals who are concerned about water safety.
Unilever pays only for the clicks or sales generated from these ads.
● Affiliate marketing: Pureit partners with influencers and bloggers who promote the
product. These influencers may share their personal experience with Pureit, and
Unilever pays them a commission for every sale they help generate.
For example, during a Facebook campaign, Pureit might focus on urban areas where people
are already aware of water purifiers. If data shows that a particular type of ad performs better
—like a video explaining how Pureit removes bacteria—it shifts its budget to run more of
those ads.

How These Strategies Work Together for Pureit

Unilever combines data-driven marketing and performance marketing to make Pureit a

success in Bangladesh. First, they use data to understand their customers' needs, preferences,
and concerns. This helps them design campaigns that feel personal and relevant, whether it's
highlighting affordability, health benefits, or ease of use. Then, they use performance
marketing to track which campaigns are working and pay only for results.

For example:

Data might show that rural families are concerned about the cost of water purifiers. Pureit can
then create an affordable payment plan or highlight cost savings in their ads. Performance
marketing ensures these ads are shown to the right people, like families in areas where water
safety is a known issue.

If a certain ad isn’t performing well (e.g., not getting enough clicks), Unilever can quickly
stop running it and focus on the ads that are working, saving money and improving results.
Strategies of Unilever Bangladesh

By combining these strategies, Pureit doesn’t just sell products—it builds trust with
Bangladeshi families by solving one of their most important problems: access to safe
drinking water. This approach has helped Pureit grow into one of the most trusted water
purifier brands in the country.

Corporate Level Strategy-

Corporate level strategy is defined as a long-term strategic plan for an

organization to achieve its long term defined goals. This plan takes into
account all the department s strategic goals into account to gain
competitive advantage and create value for both the shareholders and
clients in the marketplace. (Indeed Editorial Team, 2024)

Some of the Unilever Corporate Strategy is discussed as follows-

Sustainable Plan- Unilever Bangladesh believes to create a positive

impact on the society by reducing its environmental impact. One of the
main motoes of Unilever is to commitment to source 100 % of its
agricultural raw materials like palm oil, tea, sustainability by 2025.
Unilever is passionately working to have a positive impact on climate,
nature, plastics. In this year, Unilever Bangladesh was awarded
Bangladesh Brand Forum (BBF)SDG brand Champion Award for plastic
waste management skills. (Unilever , 2024)

1. Improving Health and Living Standards- Unilever gives

preferences through brands on the wellbeing and hygiene lifestyle
behaviour among millions of customers all over Bangladesh.
(Unilever Bangladesh, 2024) They focus on-
A. Hand hygiene (For Example- Lifebuoy hand wash program among
over 11 million school children since the 1990s).
B. Sanitization- For example- Domex floor, toilet cleaner. Unilever
launched their sanitization initiative with a campaign to deliver
14000 packs of toilet cleaning products to 200 schools in 2019
Strategies of Unilever Bangladesh

with the goal of better sanitary practices across Bangladesh.

C. Oral Hygiene- Pepsodent is one such example over here. Unilever
has Denti bus program which is basically a modified bus having
mobile dental facility that visits schools for dental and oral disease
awareness.
D. Confidence and Self Esteem- According to Unilever beauty and
self-esteem goes hand in hand. Unilever reflected this factor in
various marketing commercials with beauty products or through
short documentaries, for example, Dove Self Esteem Project where
a short film named The Code was featured with the tag line “lets
Change the Beauty”. The main moto was to build confidence
among woman that they are all beautiful in their own way-

New E commerce Site Ushopbd.Com- In the year 2021, Unilever

launched a online shop for its consumers where they can buy authentic
Unilever products and can get home delivery facilities with both cash on
delivery and online payment options. (Staff Corresponsdant , 2021)

2. Non-Price Competitive Strategies- As Unilever is a leading

company in the matured stage of the industry, it follows non price
strategies competitive strategies as follows-
A. Market Penetration-Here Unilever try to gain more market share
among its existing customers. This is mainly done through creative
and unique mode of Tv Commercials to attract customers, CSR
activities, or partnering with local community, for example,
expanding distribution networks in rural areas to sale aggressively.
B. Product Development- Unilever always tries to come up with new
products or they try to improve their existing product to make
consumer everyday life easier. They hold on the believe in
continuous product innovation. For example, Pureit Water Purifier
at first was not automated. It had filter and consumers had to
Strategies of Unilever Bangladesh

manually put water into it. Later they came up with the automated
version of it, which did not need any manual work and made the
consumer every day life easier.
C. Market Development- In market development, Unilever try to
captures new market with its existing products. For example,
Unilever has Surf excel Matic (top Load) that means it is specially
for Washing machine users and the normal Surf excel easy wash is
for bucket wash.
D. Product Proliferation- This strategy holds on the factor of
introducing new product to its new customers. Unilever,
Bangladesh has different kinds of cosmetics for different
demographic people. Unilever divides their consumer base
according to demographic factors like income, gender, and age. It
targets different age group with their different product lines. For
example, if Dove targets women of all ages, Axe targets young
men.
Strategies of Unilever Bangladesh

Findings

1. Market Leadership: Unilever Bangladesh is a market leader in the FMCG sector

with well-known brands like Lifebuoy, Dove, Sunsilk, Lux, Surf Excel, and Knorr. It
maintains strong consumer trust and loyalty through high-quality products tailored to
Bangladeshi needs.

2. Diverse Product Portfolio: Unilever offers products across personal care, home
care, and food categories. This diversity allows it to cater to a wide range of
customers and stay competitive in various segments.

3. Strong Distribution Network: Unilever's extensive supply chain and distribution

channels ensure product availability in both urban and rural areas.

4. Sustainability Commitment: Unilever integrates sustainability into its business, with

initiatives like the Lifebuoy Handwashing Program and the Shakti Program, which
empower communities and promote hygiene.
Strategies of Unilever Bangladesh

5. Intense Competition: Unilever faces tough competition from local and international
brands like P&G, Marico, Reckitt Benckiser, and Square Toiletries. Each competitor
targets similar product categories with strong brand offerings.

6. Innovative Strategies: Unilever uses data-driven and performance marketing

strategies, particularly for products like Pureit, to meet consumer needs effectively
and promote affordability, convenience, and health benefits.

7. Economic Impact: The company generates employment and supports the local
economy through its operations, supply chain, and community engagement
programs.

8. Challenges: Regulatory hurdles, price sensitivity, and competition pose

challenges. Additionally, maintaining a balance between sustainability goals and
profitability is complex.
Strategies of Unilever Bangladesh

Recommendations

1. Enhance Localized Marketing: Focus on personalized campaigns that address

specific regional needs. For example, emphasize affordability in rural areas and
convenience in urban centers.

2. Expand Product Reach: Strengthen the availability of low-cost and sustainable

products like Pureit in underserved rural markets to address critical needs like clean
drinking water.

3. Strengthen Brand Differentiation: Invest in highlighting the unique benefits of

Unilever's products compared to competitors, such as the health and hygiene focus
of Lifebuoy and the eco-friendly nature of Pureit.

4. Leverage Digital Channels: Increase focus on digital marketing and e-commerce

platforms to attract younger, tech-savvy consumers. Use performance-based
campaigns to maximize ROI.

5. Sustainability Leadership: Expand sustainability initiatives and communicate their

benefits to consumers. For instance, promote campaigns showing how using eco-
friendly products contributes to environmental protection.
Strategies of Unilever Bangladesh

6. Collaboration with Local Communities: Strengthen partnerships with local

organizations to enhance initiatives like the Shakti Program. Empower more rural
women and increase product penetration in remote areas.

7. Innovation in Product Lines: Continue investing in R&D to develop affordable,

health-focused, and eco-friendly products, especially in growing sectors like health,
wellness, and sustainable living.

8. Monitor Competitor Strategies: Actively study competitors’ moves and adapt

quickly to market trends, ensuring Unilever remains ahead in innovation and
consumer satisfaction.

By addressing these areas, Unilever Bangladesh can not only maintain its market
leadership but also build deeper trust with Bangladeshi consumers while achieving
its mission of sustainable living.
 Strategies of Unilever Bangladesh

References –

1. Kissinger, D. (2024, October 16). Unilever Five Forces Analysis & Recommendations (Porter

Model). Panmore Institute. https://panmore.com/unilever-five-forces-analysis-porters-

model-recommendations

2. SWOT analysis of Unilever. (n.d.). https://www.managementstudyguide.com/swot-analysis-

of-unilever.htm

3. Indeed Editorial Team, "What Is a Corporate-Level Strategy? (With Examples)," Indeed

Career Guide, 2024.

https://www.indeed.com/career-advice/career-development/corporate-level-strategy

4. Unilever , "Unilever Bangladesh Recognised for Leadership in Sustainability," All new

stories , 22 October 2024. https://www.unilever.com.bd/news/2024/unilever-bangladesh-

recognised-for-leadership-in-sustainability/

5. 22 October 2024. [Online]. https://www.unilever.com.bd/sustainability/health-and-

wellbeing/

6. Staff Corresponsdant , "Unilever launches e-commerce platform Ushopbd," New Age, 2021.
https://www.newagebd.net/article/145873/unilever-launches-e-commerce-platform-
ushopbd
Strategies of Unilever Bangladesh