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FACULTY OF BUSINESS ADMINISTRATION
COURSE TITLE: STRATEGIC MARKETING
ASSIGNMENT ON
TOPIC: ““PRODUCT BRANDING STRATEGY”
SUBMITTED FOR
SOMAIYAH SARWAR
Lecturer,
BBA Department, UODA
SUBMITTED FOR
PROGRESSIVE GROUP
Major- Marketing
Semester 11th
BBA Department,UODA.
SUBMISSION DATE: 12th DECEMBER, 2013
UNIVERSITY OF DEVELOPMENT ALTERNATIVE
GROUP PROFILE
GROUP NAME: PROGRESSIVE
BATCH: 29TH & 30TH
SEMESTER: 11TH (MAJOR- MARKETING)
MEMBERS NAME STUDENT ID
MD. MASUD RANA 021101002
SULTAN MAHMUD 021102063
SHAMIMA SULTANA MITU 021102035
FANCY AL LABIB 021102026
KAZI MD. KAMAL HOSSEN 021102023
LETTER OF TRANSMITTAL
12th December 2013
To
SOMAIYAH SARWAR
Lecturer,
University Of Development Alternative, UODA.
Subject: Submission Of An Assignment Of Product Branding Strategy.
Dear Madam,
This is our pleasure to present our assignment entitled “Product Branding Strategy”. The main
purpose of this assignment is how to branding of a product. We have tried our level of best to cover the
topic effectively, and we hope that this assignment meets your expected standard. This experience helped
us immensely to develop our skills in Strategic Marketing. We are thankful to you for your guidance,
suggestions and constructive criticism during the preparation of this assignment.
Please accept this assignment and oblige, We are eager to respond to our questions that you may have
concerning this assignment.
Yours Sincerely,
Masud Rana
On behalf of Progressive Group
BBA department
UODA.
ACKNOWLEDGEMENT
At the very beginning, we thank our All Mighty for guiding us to the right path, which helped us to
complete our work successfully. We got support from our institution time to time as and when required.
Our teacher SOMAIYAH SARWAR for providing us such an opportunity to prepare an assignment on.
“Product branding strategy for LUX" Without his helpful guidance, the completion of this project was
unthinkable. During our preparation of the project work, we have come to supportive touch of different
individual’s friends who lend their ideas, time & caring guidance to amplify the report’s contents. We
want to convey our heartiest gratitude to them for their valuable responses.
Finally we not only thankful to our parents but we owe much to them for their moral support, which was
very much necessary for us.
EXECUTIVE SUMMARY
Unilever is a multinational consumer product manufacturing giant operating in over hundred countries all
around the globe. Unilever Bangladesh is the Bangladesh chapter of Unilever, where the company holds
60.75% share whereas the Government of Peoples Republic of Bangladesh holds 39.25% share.
Unilever’s one of the most popular brand is LUX. They segments LUX.’s market according to
geographical locations. It further differentiates these segments into Socio Economic Cluster (SEC) that
takes into account the criteria of education and profession, which ultimately measures the financial
ability of consumers. The cluster is divided into five parts starting from A to E. Unilever targets the urban
and sub urban upper middle class and middleclass segment of the population, who falls under A to C of
SEC. Tactical marketing tools, 4P’s, are extensively used by the company to market LUX. Though LUX
is produced in Bangladesh, Unilever Bangladesh maintains the same standard all around the globe. The
product is available in six different fragrances under three different sizes. Since the demand for beauty
soap market is to a great extent oligopolistic, variations in price lead to price war, which can eventually
break down the company’s market share. Thus Unilever cannot provide a better price than its
competitors. But the price is affordable by most of the people. Unilever Bangladesh has outsourced its
distribution channels to third party distributors, which allow them to distribute LUX in massive bulks
amounting to around ten million pieces. It undertakes the largest promotional activities in the beauty soap
industry. The beauty soap industry has a few major producers of which Unilever holds market share of
slightly less than 50%. Other competing brands like Tibbet, Aromatic and Keya have start eddo have a
strong consumer base, but LUX.’s product features distribution and promotional activities have created
high brand loyalty for which it is still the market leader. Unilever, with the aid of its heavy promotional
activities, has been able to penetrate the market.
SERIAL NO NAME
1. Strategic Brand Management
2. Select A Product
3. Introduction
4. Objectives
5. The Market Of Lux Successful Brands
6. Product Life Cycle Stage Of LUX
7. Alternatives For Brand Identification
8. Brand Leveraging Strategy
9. Conclusion
STRATEGIC BRAND MANAGEMENT
SELECT A PRODUCT
Strategic brand management means clearly defining your brand and ensuring that your imagery
and behaviors are consistent with your brand definition. Before we talk about how to do this, we
need to discuss the importance of branding your business. Let's start by answering two basic
questions.
1. What is your brand?
2. What is branding?
Brand is any company's personality. It's not just a name, logo or slogan; it's much more complex
than that. Your brand is composed of the thoughts, feelings, experiences, attitudes and beliefs
that people associate with your company. Your brand is therefore not something you "own"
because it exists in the minds of others. Every company has a brand (yes, even yours).
Branding is defining what you want people to think, feel, experience and believe about your
company. When people come in contact with your company they will certainly think, feel,
experience and believe something. Are you going to leave this to chance? Are you going to let
people draw their own conclusions about your business? No! The importance of branding your
business is therefore obvious. Decide in advance exactly what you want others to think of your
business.
STRATEGIC BRAND MANAGEMENT
Strategic brand management is the next step in the branding process. It means actively managing
and influencing these thoughts and feelings in the minds of others. It's not enough to define what
you want people to think, feel, etc. You must follow through and influence these thoughts and
emotions.
A function of marketing that uses techniques to increase the perceived value of a product line or
brand over time. Effective brand management enables the price of products to go up and builds loyal
customers through positive brand associations and images or a strong awareness of the brand.
Developing a strategic plan to maintain brand equity or gain brand value requires a comprehensive
understanding of the brand, its target market and the company's overall vision.
INTRODUCTION
OBJECTIVES
For the purpose of branding strategy we have to select a product. Now we can choice a product
as our assignment & that is LUX. This is the product of UNILIVER Bangladesh.
Unilever at a Glance: Unilever is one of the world’s largest and leading multinational
companies; Unilever commenced their business activities on a larger scale by setting up their
first factory in Netherlands, in the year of 1872. Operating in Bangladesh for over the last four
decades, the company is trying to significantly contribute towards the augmentation of the
standard of living by bringing excellent high quality products at the doorstep of their customers.
The usage of Unilever products by over 90% of the people in Bangladesh stands a testimony to
their successful operation. . Their array of products show that they produce household care,
fabric cleaning, skin cleansing, skin care, oral care, hair care, personal grooming, and tea based
beverage products under worldwide famous brand names Wheel, LUX, Lifebuoy, Fair& Lovely,
Ponds, Close Up, Sun silk, Lipton, Lipton Taaza, Pepsodent, All Clear, Vim, Surf Excel, and
Rexona.
This report is an outcome of an analysis of marketing strategies used by Unilever Bangladesh
Ltd. The main purpose of the report is to find what strategies the company uses to market its
world famous beauty soap, LUX, in Bangladesh; the positive and negative aspects of those
strategies. The report further analyzes the position of Unilever Bangladesh Ltd. in the toiletry
industry in comparison to its competitors. The report discusses the process of using market
segmentation, target marketing, the product, pricing, promotional and distribution strategies and
a competitive analysis.1.3 Methodology of this report: For accessibility and availability of
information, we have chosen to work on the strategies of Unilever Bangladesh Ltd.
THE MARKET OF LUX SUCCESSFUL BRANDS
PRODUCT LIFE CYCLE OF LUX
LUX. Most of the information used in this report is from primary sources. The main source of
information was the focus group discussion. In addition, information was also collected from
websites. Chapter 2 Product Category, Market Segmentation, Target Marketing and positioning
this chapter describes the category of the selected product. The chapter is organized into four
sections. Section 1 states under which category the product falls. Section 2 describes show
Unilever Bangladesh Ltd. differentiates the population and categorizes them into different
segments. Section 3 analyzes which segment the company targets and why they target that
specific segment. Finally, section 4 describes the process through which the company tries to
capture a place in the buyers mind.
Product life cycle of LUX Soap a new product progresses through a sequence of stage from
introduction to growth, maturity and decline. This sequence is known as the product life cycle
and is associated with changes in the marketing situation, thus affecting the marketing strategy
and the market mix. The product revenue and profit can be plotted as a function of the life cycle
stage as shown in the graph below:
In the introduction stage, the firm seeks to build product awareness and develop a market for
the product. The Product branding and quality. Impact on the market mix is as follows: level is
establishment, and intellectual property protection such as Pricing may be low penetration.
Patents and trademarks are obtained. Pricing to build market share rapidly or high skim pricing
to recover development costs.
STAGES OF LUX
In 1960 LUX went colored 1929 LUX launched in 1925 India LUX launched in USA as 1916
Toilet soap LUX launched in USA as Laundry soap.
INTRODUCTION
In (1929-1950s) Company Objectives Actions Sales Low Cost of manufacturing High Profits
Negative Marketing Objective Create product awareness in major cities Product strategy Offer a
basic product Price strategy Higher than Lifebuoy Distribution Created network in major cities
Advertising strategy Awareness among early adopters.
GROWTH
In (1950s-1990s) Company Objectives Actions Sales Rising Sales Cost of manufacturing
Average cost reduction Profits Positively increasing Marketing Objective Maximizes market
share Product strategy Offer variants Price strategy to penetrate the market Distribution
Intensive network in the entire country advertising strategy Awareness an interest in mass
market.
MATURITY
ALTERNATIVES FOR BRAND IDENTIFICATION
BRAND LEVERAGING STRATEGY
CONCLUSION
In (1990s to till date )Company Objectives Actions Sales Peak sales Cost of manufacturing Low
Profits High Marketing Objective Maximize profit while defending market share Product
strategy Diversify brand Price strategy To match the nearest competitor Distribution More
intensive focusing on rural area Advertising strategy Multiple brand ambassadors for different
variants.
The good news is that you do not have to be a Jedi master to do it. You have almost total
control over two aspects of your brand. These are called Brand Image and Brand Experience.
Brand Image is what people see. It includes your logo, business cards, offices and the
clothes you wear when you meet with your clients. It also includes more casual contact with
your brand through publicity and marketing communications. Everything you say and do further
defines your image.
Brand Experience is what happens to people when they are exposed to your company.
When you exceed client expectations, you are giving your clients a great experience. Your
clients will tell others about that experience and influence their attitudes and beliefs about your
company.
Global branding Strong brands and innovation are central to our ambition to double in size. We
are investing in brand equity, finding and strengthening the connections between consumers and
the products they buy. Where equity is strong, we are leveraging it – creating efficiencies by
focusing on fewer, bigger projects that enhance margins. In addition, we are seeking superior
products, which consumers will prefer, driving profitable growth. Our business model is
designed to deliver sustainable growth. For us, sustainability is integral to how we do business.
In a world where temperatures are rising, water is scarce, energy is expensive, sanitation is poor
in many areas and food supplies are uncertain and expensive, we have both a duty and an
opportunity to address these issues in the way we do business.
The inputs to the model, like those of all major packaged goods manufacturers, are threefold:
brands; people; and operations. These map directly on to our Compass ‘Winning with’ pillars –
both continuous improvement and the market place pillars support the operations strand of the
model.
The differentiator in our business model is our USLP and the goal of sustainable living. The
outputs of the model are threefold: sustained growth; lower environmental impact; and positive
social impact. These align directly with our vision statement.
Lux is soap for quality conscious women and others, especially those belonging to the middle
class; those who are conscious about their appearance generally use it. Those who respect the
brand and have been loyal to it for years use it. The consumers share with lux a relationship of
trust and dependability and of respect. They look up to the brand and literally worship the brand.
Lux thus commands the respect and even love of the consumers.
END