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Prepared By:

Prepared For:
Mimosa Kamal
Sheikh Morshed Jahan Md. Sazzad Shahriar
Masum Alvi Chowdhury
Professor Nowshin Sharmile
Institute of Business Md. Irfan Ali
Administration Kazi Pushpa Ahmed
University of Dhaka Najeeba Mohammed Altaf
Sheikh Raina Ali
Swapnil Dutta
Samiul Alim Anik
Rashik Intisar Siddiquee
Md. Moin Uddin Miazi

MBA 61D

Strategic Analysis on Unilever


Countries operated in: 190 “Making sustainable living commonplace”

People employed: 160k+

R&D Expenditure : €1 B/year


#1
Top spot in the Personal Global Corporate
Established- 1929 Products sector of the Sustainability Leaders of
2017 Dow Jones 2017 GlobeScan annual
Came to Bangladesh- 1964
Sustainability Index survey
Lever Brothers Bangladesh Ltd.

“Something for everyone”


61% shares held by Unilever Variety of products
39% shares held by GOB  Fabric wash  Personal care
 Household care  Foods

Employees in BD: 10,000


99% are local

Masum Alvi Chowdhury, ID-05, 61D


Vision & Mission
Vision To make sustainable living commonplace.

Recent Addition Recent Addition


To be the global leader in
sustainable business Consistently deliver
financial results in the
Purpose-led, Future-fit top third of the industry
business model to drive
superior performance

To meet everyday needs for nutrition, home hygiene and personal care with brands
Mission that help people feel good, look good and get more out of life.
Md. Moin Uddin Miazi| ID-15 | 61D
9 elements of a business model
Revenue Model
Key Activities • Mainly Markup.
Production and sale of fast • Trying to go to a
moving consumer goods. subscription based system.

Key Resources
• Built-up reputation.
Key Partners: • Branding and goodwill.
• Suppliers can range from large
• Properties, plants, human
companies to smallholder farmers.
resources, and equipment.
• Distributors and resellers can range
from supermarket chains to
distributors who specialize in small
Cost Structure:
traders.
• Costs of production (i.e. raw and
• Media companies to maintain its
packaging material and goods
marketing campaigns.
purchased for resale).
• Unilever also partners with NGOs
• Staff costs.
and IGOs in order to further its CSR
• Distribution costs.
initiatives i.e. UNICEF, DFID, etc.
• Selling and administrative expenses.
Swapnil Dutta| ID-41 | 61D

9 elements of a business model


Customer segments:
Value proposition: • Business segments along the lines of
High quality, well designed, effective product type
products provided at a price fitting to • Each product type aimed at a particular
target customer and use. group of customers
• Products in personal care, food, home
care, refreshment

Channels Customer
relationships:
• Multi-channel approach, with channels
depending on the region or country of • 13 €1 billion brands and over €17 billion in
operation and the brand being sold. goodwill
• Shelf space in every physical retail which are • Utilizes social media and digital marketing,
well maintained and replenished frequently. keeping track of changing digital habits to
• Dedicated merchandising team under the tailor their marketing approach
customer development division. accordingly
• Using celebrities and media companies to
better communicate with the customers.
E-V-R Congruence Model

E
Environment
V
Approval by BSTI Values
Growing Economy Sustainability
Changing Lifestyle Integrity
Industrial Revolution 4.0 Working with others
Loyal Customer Base Setting out aspirations
Positive Impact
Continuous
Improvement

Resources Strategy
Experiences & Insight Diversified Portfolio of Products
Brand Image

R
Innovation
Established Distribution Network Extensive Market Research
Data-driven Methodologies

Mimosa Kamal | ID-59 | 61D


• Robust supply chain
GLOBAL VALUE throughout the country • Online marketplace
for products
• Strong outsourced
CHAIN ANALYSIS distribution network •

Helpline 24/7
Opting for a hybrid
• Strong shelf space
acquisition in both model combined of
Service products and
Rural and urban areas
services
• Opening new
• One factory in cleaning services
Kalurghat, Chittagong.
Marketing
• 3rd party factory all over
Bangladesh
Distributio
• Raw materials sourced mostly
n
from India and South East Asia
• • Extensive market
Often Intermediate goods are
also imported research
• Consumer behavior
Production pattern analysis
• Product design completed • Strong brand image
in R&D facilities. endorsed by
• Incorporates ideas from celebrities
market research Purchasing

• 6 R&D locations
Worldwide Design
• 6000 research force
Nowshin Sharmile
R&D 61D 39
Porter’s Five Forces Model

- Capital Intensive industry


- Red Ocean
- International player - Loyalty and satisfaction
- High number of supplier
Threats of new entry - COVID made the supplier’s
position strong
Bargaining power of
suppliers
- Everyday need products
- Food and toiletries
- COVID effects

Threats of substitute - Local companies with quality


products at competitive prices
- Brand Image
- Extensive distribution
- Low switching cost Competition from channel
- Shelf-space existing market player
- All bases covered

Bargaining power of customers Rashik Intisar Siddiquee 61D 09


By: Kazi Pushpa Ahmed (10, MBA 61D)
Strategy Group Mapping

High
Price

Mid
Little

Narrow Mid Wide

Distribution Strength & Reach


By: Najeeba Altaf (42, MBA 61D)
Strategy Group Mapping

High
Brand Awareness

Mid
Little

Narrow Mid Wide


Range of Product Categories
Triple Triangle Framework
Enterprise Level Forces

Culture

Sustainable Living Plan Capital


Improving Health & Well-being
Reducing Environmental Impact High Retained Earning
Enhancing Livelihoods Intra company loan
Female Friendly Workplace Good credit history and
rating

Capacity
Customers
State and Society

Meet fluctuating demand


Operational efficiency
Organizational efficiency
Capacity
Triple Triangle Framework
Industry Level Forces

Collaborators

Dedicated factories for Operations Competitors


Suppliers, Distributors, Retailers
10,000 people Moderate number, low size
99% Local Fair play
Low power of competitors

Capacity
Customers
State and Society

Customer Segmentation
Age. Gender, Income and Area
Something for Everyone
Customers
Triple Triangle Framework
Macro- Level Forces

Technology
Globalization
Wastage utilization
Low trade barrier
Reuse of Materials
Design and raw material from
abroad

Capacity
Customers
State and Society

BSTI Approval
ISO Approval
Sustainability
State & Society
GENERIC STRATEGY: COST FOCUS Shaikh Raina Ali | ID 52| MBA 61D

Maximum consumer
Demographic segmentation Income level
base coverage ensured

Multiple lines of the same product satisfies the need of all demographic segments

INCOME FOCUSED

Detergent
Shampoo Soap
• Surf Excel
• Sunsilk • Lifebuoy
• Rin
• Dove • Dove
• Wheel
• Clear men • Lux
Unilever: Thriving Through Red Ocean

Red Ocean Strategic Implementation Red Ocean


(Offensive) (Defensive)

o Competitors like Marico, o Building people’s confidence o Using innovative thinking


Pran, Square, RB, ACI, to create Unilever’s own
Kohinoor Chemicals, RSPL o Identifying the constraints, uncontested space
turning into opportunities
o Initial battle for market o Crafting a different brand
penetration and shelf o Systematically reconstruct strategy to make the
space share the market and adopt the competition irrelevant
right business model
o Constant need to develop o Protecting market position
product group through strong presence
Industry 4.0 COVID-19 Strategy
Data analytics
Effect Challenge
- Sales forecast
- Search engine optimization
Business Analytics - Change of habit - Advertisement channel
- Decreased demand in - No physical activation
- Used in reaching more people
- Digital promotional activities
some products
- Increased demand in
Potential Strategy hygiene products
- Optimize the marketing
channels
- More information on the
customer’s demand
Activities
Change in consumer behavior
- New model combining service and
goods Promotional channel
- Digital advertisement channels
- Focus on “Anti Bacterial” tag line New Business model

Futuristic
CREATING VALUE & SUSTAINING
COMPETITIVE ADVANTAGE Society
High
VC members
Creation & Sharing

Employees
Degree of Value

Customers

Shareholders

Level of Competitive Maturity High

 Corporate governance  Anticipate customer needs  90% employees local  Business principles  Environmental
 Accurate and timely  Research about local  Local expertise  Distribution standards
information culture and preference  Diversity network  Sustainability plan
 Sustainable profit  Innovation  Recruitment process  Products in all  Promote
 Variety of quality products  Performance assessment retail stores environmental
 Nutrition and hygiene  Labor laws consciousness
 Justifiable price  Salaries & benefits
Md. Sazzad Shahriar| ID-28 | 61D
POSSIBLE
STRATEGIES
CULTURE FOCUSED MARKETING

DIGITAL MARKETPLACE HIGHER ENVIRONMENTAL CONCERN

COST EFFICIENCY FOCUSED PRODUCT LINE

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