Final Report On Lifebuoy

SWOT Analysis of Lifebuoy
SWOT Analysis of Lifebuoy
North South University

SEMESTER: FALL2019
COURSE: BUS690;
SECTION: 04
SUBMITTED TO:
DR. CHOWDHURY SAIMA FERDOUS
PROFESSOR
SCHOOL OF BUSINESS & ECONOMICS

NORTH SOUTH UNIVERSITY
SUBMITTED BY:
MD. NAWAZ SHARIF TANVIR 181 5347 060
Date of Submission: 29th December 2019

1 SWOT Analysis of Lifebuoy
Letter of Transmittal
December 29, 2019
To,
Dr. Chowdhury Saima Ferdous
Professor, School of Business & Economics

North South University
Dhaka, Bangladesh
Subject: SWOT analysis of Lifebuoy
Dear Madam,
It is indeed a great pleasure for me as the student of MBA program to be able to hand over the
result of my hardship of the report. I prepared the report based on the knowledge which has
been acquired from the respective course BUS 690 and the kind-hearted supervision of our
honorable instructor Dr Chowdhury Saima Ferdous. I tried my level best for preparing this
report as perfect as possible. Hope you will appreciate my hard work and excuse the minor
errors.
The entire duration of preparing this write-up has been immensely helpful for me, a golden
opportunity to increase ideas and knowledge regarding the analysis of the internal and external
analysis of Unilever’s Lifebuoy, followed by its strategy identification, discussions and
recommendations for superior profitability and sustainability.
Therefore, I would like to convey my deep gratitude for your valuable guidance and sincere
cooperation. I hope you will enjoy reading this write-up.
Sincerely,
Md. Nawaz Sharif Tanvir

Acknowledgement
All praises to the Almighty Allah, who has bestowed his kindness upon us by giving us the
opportunity, time, courage, strength and patience to carry out and complete the report properly.
I am very much thankful to our honorable professor, Dr. Chowdhury Saima Ferdous, of School
of Business & Economics of North South University, for giving me the opportunity to
complete this report write-up. Her valuable suggestions, guidelines and helpful advices lead
to successful completion of this write-up. Her valuable time, support and patience have been
remarkable and are also appreciated from the bottom of my heart.
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Executive Summary
Lifebuoy is a product of Unilever Bangladesh ltd. Unilever is one of the leading multinational company
in Bangladesh, offers consumers a wide-ranging portfolio of delightful and beneficial products which
will be cost-efficient and of the best quality. The human resource capacity is 1005 and the total
investment is 500 million BDT. Unilever has built a strong business in Bangladesh with 14 grinding
machine plants which are imported from China and our plant will be set up in the industrial section of
Chittagong. In this term paper I discussed about the different strategies of lifebuoy soap , the strategic
groups they belong to, the different driving forces behind them, the key success factors that helps them
outperform their rivals, we also conducted internal and external analysis, and constructed the VRIN
framework to help analyze the economic performance of the resource and capabilities involved to create
sustainable competitive advantage. Finally sort out SWOT through its component and factors.
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Table of Contents
CONTENTS
1. Introduction .......................................................................................................................... 9
1.1. Background ....................................................................................................................... 9
1.2. Objective of the Study....................................................................................................... 9
1.3. Methodology ................................................................................................................... 10
2. Analysis of Mission and Vision.......................................................................................... 11
2.1 Vision Statement ............................................................................................................. 11
2.2 Mission Statement ........................................................................................................... 11
2.3 Analysis of Mission & Vision Statement........................................................................ 11
3. Analysis of the External Environment.................................................................................. 7
3.1. PESTLE Analysis ............................................................................................................. 8
3.2. Analysis of Six (06) Questions for External Environment ............................................. 10
3.2.6. Is the industry outlook conducive to good profitability? ...................................... 22
3.3 Industry Life Cycle Analysis .......................................................................................... 23
4. Analysis of the Internal Environment ................................................................................. 24
4.1. Analysis of Two (02) Questions for Internal Environment ............................................ 27
4.1.1 : How well is the company’s present strategy working? .................................. 27
4.1.2 : What are the company’s most important resources and capabilities, and will
they give the company a lasting competitive advantage over rival companies?
29
4.1.4: SWOT ANALYSIS OF Lifebuoy ................................................................................ 38
Strengths in the SWOT Analysis of Lifebuoy: ...................................................................... 38
Weaknesses in the SWOT Analysis of Lifebuoy: .................................................................. 39
Opportunities in the SWOT Analysis of Lifebuoy: ............................................................... 40
Threats in the SWOT Analysis of Lifebuoy: ......................................................................... 40
5. Discussion & Recommendation ......................................................................................... 42
6. Conclusion .......................................................................................................................... 36
7. References .......................................................................................................................... 37
8. Appendix ............................................................................................................................ 41
Questionnaire .................................................................................................................. 41
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1. INTRODUCTION
1.1. Background
Unilever is a British–Dutch multinational fast-moving consumer goods company. It is offering

more than 400 brands include foods, beverages, cleaning agents and personal care products.
Unilever is one of the world’s finest makers of packaged consumer goods and moves numerous
products like deodorants, fragrances, soap, margarine, tea and frozen foods all over the world.
Unilever is one of the world’s three largest food firms -after Nestle and Kraft- and the world’s
second largest packaged consumer goods company –behind Procter & Gamble. Unilever has
two billion consumers who use their product in a regular basis.
Unilever Bangladesh Limited (UBL) is the largest FMCG Company in Bangladesh. It is the
largest trusted brand name in skincare, hair care, fabric wash and dish wash and so on. UBL
has already achieved sustainable competitive advantages through operational excellence,
product leadership, and customer intimacy. The company has tangible resources, trained people
around, and has the organizational capability of using the resources. The Unilever Bangladesh
Limited is consumer goods company based in Dhaka, Bangladesh and founded in 1964,
engaged in the manufacture and distribution of home care products, personal care products,
and foods. It is a joint venture of the Government of Bangladesh and Unilever. Unilever holds
60.4% and Government of Bangladesh holds 39.6% of its share. The company was formerly
known as Lever Brothers Bangladesh Ltd. and changed its name in December 2004.
Lifebuoy is not just a product but a brand. There is hardly any person in Bangladesh who have
never heard about this product. Unilever Bangladesh Limited is the sole manufacturer of this
product. Lifebuoy was originally, and for much of its history, a carbolic soap containing phenol
(carbolic acid, a compound extracted from coal tar). Lifebuoy is the world’s number one selling
antibacterial soap, sold in nearly 60 countries. Through the Lifebuoy brand, Unilever aims to
make a difference by creating quality, affordable products and promoting healthy hygiene
habits. The goal is to help 1 billion people around the world improve the hygiene behavior by
2020 (Unilever Bangladesh, u.d.).
1.2. Objective of the Study
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The objective of our study is to achieve an overall understanding of the external and internal
environmental factors that affects companies like Unilever, by analyzing different types of
business environment. The broad objective of the study is to find out how the strategy
orientation works and how their strategies are effective enough to ensure superior profitability
and growth in the long run.
To have a sound understanding of the external and internal environment of the company shows
the factors which is affecting the company.
• To have knowledge about PESTLE model, Five forces model and SWOT analysis of
the company.
• To analyze the company’s current strategies as well as rival’s strategy and to suggest
proper improvements.
• To understand the proper coordination and alignment of the business functional
strategies’ and related knowledge.
• To ensure sustainable competitive advantages of Lifebuoy and identify the strategic
changes which should be coordinated with companywide planning.
1.3. Methodology
To make this report meaningful and presentable, both primary and secondary sources were
used. Most of the information came from secondary as well as day to day observations. As for
Primary Research, we used a convenient sampling technique and a questionnaire was
developed and given to 05 respondents. 01 was an employee of Unilever, to get the key insight
of the company’s internal affairs and 04 were given to general people, to get a clear picture
about the soap industry in Bangladesh, particularly the performance of Lifebuoy in the market.
On the other hand, secondary data collected through internet, different journals, book, regular
reporting with the main focus being on Lifebuoy’s positioning strategies, customer preferences,
brand value, future plans and so on.
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2. ANALYSIS OF MISSION AND VISION
2.1 Vision Statement

More hygienic, healthier and ultimately more vital communities.
2.2 Mission Statement
By 2020, Unilever’s aim, through Lifebuoy, is to change the hygiene behavior of 1 billion
consumers across Asia, Africa and Latin America. This could prevent 600,000 child deaths
every year from respiratory infections and diarrheal disease – the world’s two leading causes of
child mortality.
Unilever aims to make a difference to those who need it most. The handwashing campaigns are
designed to reach people in countries where diarrheal disease is highest and where soap usage is
infrequent. One key focus is India, a country that has the highest number of children under five
– over 380,000* a year – dying from diarrheal disease. That is more than 1,000 children every
day.
To achieve its goal, a new Lifebuoy Handwashing Program was launched in 2010, and is now
one of the world’s largest hygiene behavior change initiatives. This program is central to
Lifebuoy plans in all countries and fully embedded across the brand’s business model. The
combination of proven programs and wide reach means Lifebuoy has delivered impressive
results.
2.3 Analysis of Mission & Vision Statement
Vision points an organization in a particular direction, charts a strategic path for it to follow,
builds commitment to the future course of action and molds the organizational identity.
(Thompson, Peteraf, Gamble, Strichland, 2018). It is the future of the business, which then
provides the purpose. The vision statement is about what you want to become. It’s aspirational.
(Skrabanek, 2018). Vision statement has to be graphic, forward-looking, focused, feasible,
flexible and memorable. It cannot be vague or incomplete, cannot be based on present, can’t
use bland or uninspiring terms and cannot be generic or replied on superlatives. (Thompson,
Peteraf, Gamble, Strichland, 2018).
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The vision statement of Lifebuoy is very focused, graphic, forward-looking and also feasible.
They just want to make sure the desire to be clean, active and healthy of the people are fulfilled
by their products. They are a purpose driven company. So, their goal is always to take actions
that’s bigger than their products. The primary hopes and dreams of Lifebuoy are to make sure
more hygienic, healthier and more vital communities. For that, they are trying to consistently
innovate and provide accessible Lifebuoy products to a wide range of consumers. Lifebuoy
products give protection from 10 infection-causing germs.
Mission statement describes one company’s present business and purposes. (Thompson,
Peteraf, Gamble, Strichland, 2018). It is the guideline to reach the destination set by the vision
statement. (Hofstrand, 2016). Mission statements are usually quite brief and done annually as
because the mission strategy is done only for a year or less. Mission statement actually answers
these questions:
⇛ What do we do?
⇛ Whom do we serve?
⇛ How do we serve them?
The first line of the mission of Lifebuoy describes so vividly what they want to do in the next
year. Their goal is to change the hygiene behavior of consumers by 2020, they even mentioned
the geographical area they want to cover. Deaths of 600,000 children because of the world’s
two most vital diseases – respiratory infections and diarrhea will be prevented through this
mission. Their main target is to save the children who need it most, especially children under
five years of age. For that, a new Lifebuoy Handwashing Program was launched in 2010, which
is now one of the world’s largest hygiene behavior change initiatives. This program is the main
hub for Lifebuoy plans in all countries and fully embedded across the brand’s business model.
Their programs and campaigns are designed to reach consumers in countries where soap usage
is indifferent and diarrheal disease is frequent.
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Lifebuoy, as a part of Unilever, has developed a set of values to guide the actions and behavior
of company personnel in conducting business and pursuing in strategic vision and mission.
They have articulated four core values that are Integrity, Responsibility, Respect and
Pioneering. Integrity defines how they do behave and where they are. It guides them to pursuit
their vision with success. As a purpose driven company, their aim is always to make a positive
impact on the business partners and society with which they engage. They are also committed
to improve the way they manage their impact and pave the way towards a sustainable business.
They have developed a value to work with the agencies, suppliers, distributors and other
business partners who have the similar values as they do. So, their first priority might be a
successful business but that aligned with caring about consumers, employees and shareholders
and the world they all live in.
3. ANALYSIS OF THE EXTERNAL ENVIRONMENT
An external analysis is the assessment of the changing global environment, in which an

organization or an industry operates, with a view of an ‘early warning system’ for identifying
the potential threats and opportunities. (Culture & Creativity, N.D)
Analysis of such Macro-environment are very important to determine, where a company is,
how it is operating and what it needs to do, to acquire market share, superior profitability and
growth in the market. It is the process of identifying and understanding emerging opportunities
and threats.
Unilever, one of the leading FMCG Industries, is trying to make its product available and
affordable to everyone. The company is changing their technology, according to the trends.
People have different lifestyle, taste, preferences and budgets. The organization is sensitive
while designing the soap bars or shower gels because every market has the different
requirement. Unilever makes their decisions depending on the customer analysis, available
technology and market characteristics such as the size of the market, entry barriers and
distribution system. (Mills, 2005, p50
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Lifebuoy, one of the Unilever’s renowned brands, came up with a unique selling proposition,
regarding the importance of health and hygiene for people for their day to day lives. It is one
of the oldest brands in the soap industry and has a history of 100 years old. With the passage
of time, Lifebuoy has encountered a lot of competition and still is been fighting, to maintain its
position and to outperform its competitors in the market.
Unilever’s macro-environment consists of six principal components, precisely own as the

PESTLE Analyses, which can play a vital role in determining the market and industry factors
based on which, customer analysis and competition among the rivalries can be identified and
that may possess a huge impact on any organization’s prospect.
3.1. PESTLE Analysis
Macro environment mainly discuss about outer environment. The factors of this outer
environment are same for every organization in every industry. Such factors refer to the issues
like political, economic, societal, technological, legal and environmental factors, prevailing in
a country. In short, it is known as the PESTLE analysis.
To analyze external environment of Lifebuoy, one of the most effective way is PESTLE
analysis. Below, the PESTLE analysis of Unilever – Lifebuoy is described:
• Political Factor: Political factors do play major role as an external factor for any
organization or industry. There are different types of political issues and factors that
somehow, affect the strategies to be taken by any organization. For Unilever, the
political factors that plays a major role in determining the performance of Lifebuoy are:
o Minimum wages of labors or workers
o Laws of environment are been followed and maintained.
o Trade agreement between home country and the origin country
o Uncertainties of political situation like strikes, riots or any type of political
instabilities in the country.
o Government intervention and regulations in the day to day business functions
for Lifebuoy.
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• Economic Factor: All sorts of companies or business do get affected by global and
local economic factors. This includes economic growth, interest rate, fiscal policy that
are set annually and it does impact the industries. In case of Lifebuoy, economic factors
are one of the major factors that plays vital role to set strategies and to think beyond
expectations. Economic factors that plays role for Lifebuoy are:
o Development of emerging market
o The growth of emerging economy is much faster than that of developed
countries
o Shooting up of GDP and increasing rate of employment, leading to improved
standard of living of people.
o Economic barriers resulted due to political reason
Lifebuoy has encountered few great strategies to take the advantages of their capital into the
growth of market. They have taken the initiatives to invest in rural market besides investing on
retail markets in the cities. This strategy has worked immensely well for Lifebuoy to gain
profitability as major of the consumers in Bangladesh are the inhabitants of rural areas.
• Social Factors: The third factor is social factors, which enchant with the cultural and
socio-economic life of certain demographic location. People in developing countries
like Bangladesh, are focusing on hygiene and having a healthy lifestyle and thus,
Unilever took the opportunity and entered into the untapped market. Although, when
Unilever’s Lifebuoy started their journey in Bangladesh, they faced few awkward
situations, particularly with the phase of Aeromatic soap of selling “100% Halal Soaps”
and also because they were unaware of the Bangladesh consumer’s mentality and
purchasing capability but within a short span of time, Lifebuoy re-structured their
strategy and came in the driving seat of the market. Strategies that had been taken by
Unilever-Lifebuoy in Bangladesh to cope in the market are:
o Lowering prices and creating awareness on health and hygiene.
o Advertisement, promotional and CSR activities organized by Unilever-
Lifebuoy and providing support to Bangladeshi people which did help Unilever-
Lifebuoy to get maximum consumers on board.
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• Technological Factors: Technological factor is the other vital issues as an external
factor that puts impact on any organization. Challenges that had been faced by
Unilever’s Lifebuoy on technological issues are described below:
o Low internet speed issues and information exchange system at the initial
stages. Although such issues, are being resolved day by day.
o Lack of specialist to run the modern machineries in the factory.
o But as the IT system is multifunctional it helps Lifebuoy to manage their
business globally.
• Legal Factors: As Unilever is a multinational organization which operates all around
the world, there are few legal issues that Lifebuoy needs to comply with. Legal factors
that did put impact on Unilever Lifebuoy to set the strategies are:
o Complying with the governmental rules and regulation to manufacture
products in Bangladesh.
o Complying with the export and import rules and regulations while exporting
or importing any manufacturing equipment’s.
o Ensuring to comply with the tax rules and regulations.
• Environmental Factors: Due to the type of product Lifebuoy is, few environmental
issues are there that Unilever needs to keep in account. They are:
o As Lifebuoy is a kind of product which is related to human skin and due to
demographical location, Lifebuoy do need to ensure the type of soaps they
are manufacturing for Bangladesh is not harmful for the Bangladeshi
people’s human skin.
o Due to packaging, it is also important the type of plastics used for packaging
is environment friendly.
Thus, it can be said, Lifebuoy has been way successful strategically to consider all types of
external factors to run their business smoothly in Bangladesh.
3.2. Analysis of Six (06) Questions for External Environment
Therefore, what and how to access the macro-environmental factors can be analyzed by
discussing the below six (6) questions:
Q:1 How strong are the industry’s competitive forces?
Q:2 What are the driving forces in the industry, and what impact will they have on competitive
intensity and industry profitability?
Q:3 How are industry rivals positioned in the market and the Strategic Groups within the
industry?
Q:4 What strategic moves the rivals likely to make next?

Q:5 What are the industry’s key success factors?
Q:6 Is the industry outlook conducive to good profitability?
Through the analysis of the above six questions, we can come to a point to understand, how
strong the external environmental is and to what extent, the strategies of Lifebuoy are
compatible with the factors and long-term profitability and sustainability of the organization.
3.2.1. How strong are the industry’s competitive force? – The Five Forces Framework
Managers of Unilever, analyzes the competitive forces in the industry, for its Lifebuoy brand,
which can be explained by Michael E Porter’s framework called the Porter’s five forces model.
This acts as one of the major useful tools in determining the business strategies for Lifebuoy.
The main purpose of five force strategy is to identify how “strong” “moderate” or “weak” the
competitive forces are based on which, the opportunities and threats can be identified.
However, the analysis also portrays the starting point of formulation of the strategy depending
on the competitive landscape in which, the company operates. (Strategic Management, MBA
401).
Lifebuoy constructively, competes in the global soap industry. Five force analysis of the
company shows the importance of the value and prioritizing the competition in terms of;
intensity of rivalry among firms, risk of new entrants, bargaining power of buyer, bargaining
power of supplier and threat of substitutes. As Lifebuoy is one of the potential brands of
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Unilever, they treat competitive rivalry as one of the strongest external forces. How the five
forces model plays a vital role in Lifebuoy’s strategic business decisions are elaborated below:
Figure: Porter’s Five Forces Model
Source: https://www.stratechi.com/porters-5-forces/
Intensity of industry rivalry among established firms: This discuss the extent to
which brands like Lifebuoy, are competing with different other brands in the market, to
gain market share from each other. A strong competitive force can be treated as threat
and weak competitive force can be treated as opportunity for any organization. It is also
the strongest force among the five forces. Lifebuoy’s rivalry is “moderate” because
competition is moderate as some market segments demand for healthy products like
Lifebuoy whereas, some demand for beauty soaps like Tibet, Sandalina, Lux, Dove and
etc. This means that Lifebuoy does have competition with its close substitutes as well
as its close competitors. As a result, the buyers switching costs are comparatively low,
because of availability of competitors products, with almost similar objectives. The
major competitive weapon that Lifebuoy uses to outperform its rivals are unique selling
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proposition, customer loyalty, promotional activities, sales and distribution channels
and etc. as part of value creation activities. Therefore, it can be said that Lifebuoy is
cautious enough to take strategies and to compete the intensity of the potential rivals.
Risk of Entry of Potential Competitors: Lifebuoy faces threat both from the
established and potential new entrants in the market. As per Lifebouy’s product life
cycle, which is in the maturity stage, its risk of potential new entrants in the market is
“moderate” because it is quite expensive and time consuming for a new entrant in soap
industry, to compete with Lifebuoy. This is because of high entry barriers in terms of
Lifebuoy’s economies of scales in production, sales and distribution channels that
enable them to take cost advantages. Moreover, Lifebuoy’s main competitive advantage
is its strong network effects and its customer loyalty that can also pose high barriers to
entry for the new entrants in the market, who will require huge financial resources and
retail backup to compete with Lifebuoy. In spite of this, the management of Lifebuoy
has been very cautious to do research on market to identify, if any rival firms are
entering in their market.
The Bargaining Power of Buyers: Lifebuoy’s business depends on the response of

the buyers to its products and it is the buyers, who have an immense power to choose
or not to choose their products, because of the other competitors offers. The bargaining
power of the buyers are “moderate” because Lifebuoy already has competitive pricing
and it also offers regular discounts, engages in promotional activities, to maintain brand
loyalty among its buyers. Moreover, it also ensures superior quality of their soaps, in
terms of creating a healthy hand washing experience, to acquire and to hold on to their
customers. On the other hand, switching cost of the buyers are also “low-to-moderate”
because of limited variety of hygiene related soaps in the market, High quality of
information, which is also a strong force and small size of buyer which is regarded to
be a weak force. The small size of individual consumer size has a very negligible effect
on profit margin of Lifebuoy.
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The Bargaining Power of Suppliers: Suppliers do play one of the major roles in
Lifebuoy’s external environment because of the availability of the products. Because,
along the serving the buyers, it is much important that there is availability of stocks so
that it can supply to the consumers at any demanding situation. Although, the demand
of Lifebuoy is quite linear but as a firm, Unilever is always ready to serve. It implies a
“moderate” force on the size of individual suppliers, population of suppliers and
overall supply of the soap product.
Threat of Substitutes: Presence of Close Substitute like other competitor’s products
(i.e. Savlon, Dettol, Johnson & Johnson) & presence of Close Competitors like
Unilever’s or other competitors soap products (i.e. Tibet, Sandalina, Lux, Dove & etc.)
may pose the treat of brand cannibalization and does have the power to decrease the
loyalty and sales of Lifebuoy. However, in Lifebuoy’s case, the below external forces
can be regarded as “weak-to-moderate” force of substitution because of; i) Low
switching cost of the buyers ii) Low substitute availability in terms of hygiene related
soaps but high substitutes available for beauty soaps.
3.2.2. What are the driving forces in the industry, and what impact will they have on
competitive intensity and industry profitability? – The Driving Forces
Driving Forces are the drivers of the industry that can have both favorable and unfavorable
impacts in reshaping industry landscape and altering competitive conditions and these mainly
emerges from both the internal and the external environment that prevails in the companies.
(Quizlet, Chapter 03).
In case of Unilever’s Lifebuoy, there are some industry driving forces as well, which fall into
the following categories:
Changes in the industry’s long-term growth rate: The FMCG industry, particularly
the soap industry, is facing a fair competition in the market. People earlier, looked for
the outlook of the soaps but now, consumers’ preferences are changing, which led to
evolution of products like Lifebuoy, to give a “healthy washing experience” to the
consumers, leading to a change in industry long-term growth. The market segment that
are becoming more health conscious, demand more for products like Lifebuoy, which
impacts their choice and purchase decisions for soaps. Competition among brands has
been increasing in a faster rate and many companies are interested to formulate various
managemental and marketing strategies, to increase their own market share for their
products. The scope of earning profits and to serve the health-conscious people in the
market, motivates the existing as well as the new rivals to enter into the market.
However, competing with a brand like Lifebuoy, will require significant amount of
capital and financial resources, which is a bit difficult, particularly for new entrants
and thus, can act as entry barriers as well.
Increasing Globalization: This to some extent, have facilitated the consumer demand
for different variety of products. This force is one of the strongest drivers that made
global companies like Unilever, very advantageous to spread their operating reach into
many countries across the globe, serve different market segments and to increase long
term profitability and sustainability.
Technological Changes: Advances in technology leads to introduction of substitutes
and can change the overall competitive landscape. For instance, consumers earlier,
only purchased beauty soaps but with the help of technology, products like Lifebuoy
was introduced by Unilever that created a unique selling proposition and a strong
positioning about having a healthy hand washing experience, in the consumers
mindset. Among the Bangladeshi population, there is a large young and tech-savvy
consumer base, who is beginning to adopt technology at early stage (Bangladesh Open
Data, 2018). In turn, the influence of information and communication technologies is
replacing the traditional culture by digital culture (Hussain, 2015). In order to stay
relevant in the evolving and competitive market place, companies like Unilever need
to be innovative in their customer acquisition strategies. Moreover, with emerging
technologies and new internet capabilities, other rival firms can also give tough
competition to Lifebuoy as well
Product innovation: Innovation in Product Development and Marketing Processes

can alter the pattern of competition in the industry, by attracting newer or existing
buyers, rejuvenating the industry growth rates, increasing product differentiation,
which will directly impact rivalry, entry threats and buyer powers. When it comes to
soap industry, colorful looks and pleasant scents are already very basic and popular
properties of Bar Soaps. However, some interesting new textures and formats are being
launched, which offer a more unique sensory feel and experience. Multi-sensory Bar
Soaps are expanding their roles to add more value to bath time, not only cleansing and
skin-conditioning, but improving the user’s mood and hygiene issues. For e.g.
Chocolate Soap (i.e. Lixoné Spa Facial & Corporal Jabón de Chocolate), Touch-
friendly Soap (i.e. The Golden Fun Soap), Natural Soap (i.e. Holy Lama Naturals
Curcuma Soap) are examples of innovations that companies around the world are
bringing in the soap industry, which can act as a threat for Unilever’s Lifebuoy brand.
Entry or exit of major firms: As part of the globalized world, companies all around
the world have their own distinctive strategies to operate in different markets of the
world. Entry and Exit of a major firm, can pose a pressure on the existing players in
the soap industry. However, factors like sizable economies of scale in production, sales
& distribution channels, customers brand preferences and loyalty, networking with the
internal and external supply chain, regulatory and trade policies etc. can act as entry
barriers for new brands o fight with Lifebuoy. On the other hand, there are exit barriers
as well, in terms of huge fixed costs associated with companies and for which many
companies in the soap industry are still operating, despite of lower profitability, sales
and popularity in the market.
Changes in cost and efficiency: Many global companies like Unilever, are operating
in developing nations like Bangladesh, because of changes in people’s taste and
preferences and also, as part of market expansion strategies. The cost of production of
soap products in developing countries are cheaper because of availability of cheap
resources, and diversified people’s demand, which can motivate other foreign
companies, to come these counties and start their operations as well. On the other hand,
the cost and efficiency of soap products can also be hampered, depending on the costs
associated with the factors of production, the bargaining power of the suppliers and the
buyer of the product, the intensity of competition in the market, the inventory and the
overall operations system, focusing on new product development or improvements,
changes in budgets, financial performances, marketing strategies and etc. required for
getting efficient finished products.
Reduction in uncertainty and business risks: Having a proper Business Plan and a
Business Model, having the right value proposition, developing expertise in different
functional areas of the business, proper competitor analysis, conducting Feasibility
tests, taking proactive and reactive strategies in time, knowledge management system
and etc. enables businesses to minimize uncertainties and business risks. The more the
business are focused, the lesser the threats they are likely to face and can sustain more
in the long run. Unilever for its Lifebuoy, is trying hard and to be focused in this aspect.
Changing societal concerns, attitudes and lifestyle: Emerging social issues as well
as changing attitudes and lifestyles, can act as important factors for industry changes.
Consumers growing concern about hygiene and a healthy standard of life, motivated
many companies like Unilever, to come up with brands like Lifebuoy, to improve
people’s handwashing habits, to prevent childhood deaths and to create a change in
behavior of people. Thus, shifting societal concerns can alter the pattern of
competition, favoring those players that respond with products targeted to the new
trend and condition.
Government Policies and Regulations: Government policies and regulations can be
treated as both positive or negative drive force for any company. For Lifebuoy, the
government policies and regulations of Bangladesh helped to comply with the aim of
creating hygienic environment and to make people germ free by using their products.
Consumer Association of Bangladesh looks after that whether the ingredients that are
used for the production of the soaps are harmless for human body and the price of the
products. Thus, it can be said, Government policies and regulations works as positive
driving force for Lifebuoy to function in Bangladesh.
3.2.3. How are industry rivals positioned in the market? - The Strategic Group Analysis
Within an industry, different companies sell products and services that are appealing to the
consumers in different aspects. Some are more attractively positioned than others. Therefore,
understanding which companies are strongly positioned and which are not, is very important
for firms, to analyze its existing position in the market and this is done by a technique known
as Strategic Group Mapping. (Thompson, Peteraf, Gamble etl. 2020)
A strategic group consists of different companies in an industry, that has similar competitive
approach and position in the market. Companies in the same strategic group resembles each
other in many ways. For e.g. the market players in the Soap Industry of Bangladesh include the
followings:
Kohinoor Chemical Company Limited (KCCL): KCCL is popular for its beauty
product brand” Tibet‟. The company considered as the pioneer of soap, cosmetics and
toiletries manufacturing industry of Bangladesh. Their product line includes Tibet
Beauty Soap, Sandalina Sandal Soap, Ice Cool Soap and Bactrol Family Health Soap.
Square Toiletries Ltd.: It is a Strategic Business Unit (SBU) of Square Group with the
core value “Uniquely Touching Lives”. Meril Beauty Soap is the main Banded product
of this SBU which was later named as Meril Splash. Today, Meril‟s product line has
expanded with different variants.
Keya Cosmetics Ltd.: Alike Square Toiletries Ltd., Keya Cosmetics Ltd. is a SBU of
Keya group. It started it journey with its most popular brand Keya Beauty Soap and
since then it plays a major role in the soap industry and keeping up with the competition.
ACI Limited: Savlon one of the world leading brands in personal hygiene has been a
part of ACI’s portfolio since the inception of this company. Savlon is as well recognized
elsewhere in the world as it is in Bangladesh and ACI is proud to bring such a household
name from around the world to the homes. This brand since the start has worked
relentlessly in order to keep the people of Bangladesh germ free.
Unilever Bangladesh: Unilever at present is the largest market shareholder in the soap
industry. It has grabbed most of the market share and still maintaining to grow more
popularity with its popular beauty soap brands which includes Dove, Lux and Lifebuoy.
Reckitt Benckiser (RB) Bangladesh: Reckitt Benckiser, a world’s renowned
multinational company who is currently market leader in world’s 37 countries‟ soap
industry including Bangladesh’s soap market for their Antiseptic soap Dettol. (Reckitt
Benckiser, 2016).
Others: Except above organizations there are some other companies who also playing
important part in the soap industry with their soap brands. These include – Colgate-
Palmolive (Irish Spring and Palmolive), Beiersdorf AG (Nivea), Godrej (Cinthol),
Henkel AG (FA), Johnson & Johnson and some other brands are available which mostly
exist in the Grey Market.
The Strategic Group Mapping of Soap Industry in Bangladesh
Strategic mapping is kind of business technique that allows an organization to identify how
rivals are competing in the same industry. This group consists of businesses with similar
competitive approaches and positions in the market. Companies who are in the same industry,
can match each other in different categories. To run a company successfully, it is mandatory to
know what the strategy of the competitors or rivals is, what are they doing, how are they
positioned and to what extent, they are competing in the market. In a nutshell, strategic map
helps a company to be more focused in the competition and to retain and sustain the leading
position in the industry more strongly. Companies who are in the strategy group has comparable
product line breadth, almost similar or close to price or quality range, using similar distribution
channels, identical technology and they do compete each other in the same demographic
locations as well, as offering almst same or similar product and services to the buyers.
Few steps are needed to be followed to construct a strategic map which are:
• Finding out the competitors through identifying the characteristics of competition and
sorting out the level of competition. For e.g. in case of price/quality (high, medium, low),
demographic coverage (national, global), product line breadth (wide, narrow), what extent
of service is offered (no frills, limited, full), use of distribution channel (retail, wholesale,
internet, multiple) and degree of services offered (none, partial or full) (Thompson, 2019-
2020, p 71)
• Plotting the firms on two variable maps using the pairs of the differentiating characteristics.
• Positioning the firms that falls into the same strategy area into same strategy group.
• Drawing circles around each group and making the circles proportional to their market
share the respective industry.
In the soap industry along with Lifebuoy, there are other companies. who are trying to lead the
market position. Brands like Dettol, Pears, Savlon, Neutrogena, Sandalina, Lux, Meril, Keya
are giving tough competition to reach the leading position in the soap industry of Bangladesh.
Below, is a comparative market positions of few selected companies in the soap industry of
Bangladesh, which is portrayed through a strategic map:
Figure: Strategic Group Mapping of Soap Industry in Bangladesh
Source: (Thompson, Peteraf, Gamble etl, 2020, p. 71-73)
The circles in the diagram has been drawn as per the position and performance of the
competitors in terms of the prices they offer in the market, followed by market visibility of
their products. The higher the price indicates products for a particular niche or a strategic group,
with greater affordability and brand preference whereas, higher visibility means more self-
space and availability to the consumers in different shops, departmental stores, grocery stores
and etc.
The diagram indicates that the price of Lux and Lifebuoy are in medium range of around Tk.
25 to Tk. 35 and they have the highest market visibility in the market. On the other hand,
although Pears and Neutrogena also focuses on health and hygiene but they have comparatively
less market visibility, because of its high price and niche market segment.
On the other hand, Keya and Tibet has the lowest market price followed by lowest market
visibility as it is mostly been found in the district or rural areas. They have a price range of
around Tk. 20 to Tk. 25. Meril does have the low-price range as of around Tk. 22 to Tk. 25 as
well but due to its better ingredient quality of product it is more popular among people as well.
Sandalina, Savlon and Dettol tends to be in the same group as they have mid-level price range
and mid-level market visibility followed by similar competitive approaches. There are also
been quite popular in the city areas as well as other districts or divisions having a similar mid-
level price range of Tk. 25 to Tk. 30.
Strategic Map is highly valued for any sort of businesses in its industries. As it gives a clear
idea to a company that who is their closest competitor and based on that, companies can take
their action plan to reach its goal. There are specifically two reasons why some positions are
more attractive than others:
• Profit prospects of different strategy groups can vary from good to poor based on their
degree of competition, differentiating potential entrants to each group and difference of
suppliers and buyers due to bargaining power (Thompson, 2019-2020, p-73).
• Some strategic groups are more favorably positioned than others as they face weaker
competitors or they are favored by industry driving forces.
3.2.4. What Strategic Moves are Rivals likely to make next? - The Competitor Analysis
After identifying the market position of the rival firms, company like Unilever, does conduct
research on their competitors, to identify their current positioning strategies in the market, in
terms of; market position, product lines/line extensions, locations they operate, distribution
channels, sales, profitability, customer preferences, loyalty and etc. This can be explained well
by a framework, which enables them to develop strategic and counter moves for its brands like
Lifebuoy. This includes:
Identifying the current strategies of the rivals in terms of its positioning strategies,
sources of competitive advantages and the investments they are currently doing, to
survive in the market. For e.g. what ACI & Reckitt Benckiser is currently doing for
their products like Savlon & Dettol in the market.
Identifying the financial and strategic objectives of the competitors and to what extent
they are meeting those or striving to improve those. For e.g. the budgets allocated by
the rival firms for their products, the strategies and tactics developed to create more
values in the customers mindset and the extent to which they are meeting their business
objectives and etc.
Identifying the resources and capabilities of the competitors, which can serve as signals
for their future strategic moves. For e.g. the key know-hows or the competitive assets
or resources these rival companies possess or are likely to possess that can help them
to give competitive advantage over Lifebuoy.
Making realistic assumptions about Unilever, its brand Lifebuoy and also the products
of the rival firms, based on the available assets, capabilities, knowhows, expert
opinions and strategic moves that the rivals might take, considering the changing
market and industry conditions.
3.2.5. What is the Industry’s Key Success Factors (KSFs)?
Key or Critical success factors activities are required for the success of businesses. It has been
used significantly to present or identify a few key factors that organizations should focus to be
a successful. Critical success factor refers to “the limited number of areas in which satisfactory
results will ensure successful competitive performance for individual department, or
organization” (Critical Success Factors – Analysis, 2009)
Key success factors for the industry, where Unilever’s Lifebuoy belongs to can be developed
from the company’s mission statement, developing five or six high level goals, list of
requirements, problem and assumption and problem vs. requirement matrix.
Some of the key factors for the lifebuoy are as follow:
Improve health and hygiene

Sensitivity of changing market
Understanding of how and why customers buy
Product line coverage
Identification and positioning to fulfil customer needs.
Distribution coverage and delivery speed.
Promotion magnitude and impact
High product quality
Being customer centric and seeing customers as the key strength
Focusing on continuous improvement to minimize significant competitive
disadvantages
Other than this factors, Unilever’s initiative to “Reposition” the Lifebuoy brand in the FMCG
industry, was one of the vital strategies to re-brand itself in the market to avoid competitive
disadvantages and to retail customer loyalty and market share.
The standard brick red soap, with the specific fragrance was not competent with the other
market competitors. So, Unilever changed the lifebuoy and made the new lifebuoy with new
the fragrance and increased its product range. The new lifebuoy is the completely new product
with the new formulation, fragrance, lather profile and a shift in positioning from being a male
soap to family soap. Now, the lifebuoy is no longer a carbolic soap with cresylic perfume, it is
a toilet soap with a different fragrance. Lifebuoy changed the target market from an earlier
man, the focus has shifted to the family message that Lifebuoy is for effective protection from
germs that cause the health problems.
The new range of Lifebuoy includes the Lifebuoy active red, Lifebuoy international plus and
gold, shower gel and the talcum powder. For the upper end consumer, the lifebuoy international
range and which is used as the deodorants.
3.2.6. Is the industry outlook conducive to good profitability?
Different frameworks like the PESTLE, five forces model, driving forces, strategic groups,
competitor analysis and key success factors determine the profitability of any industry. Putting
them all together, gives a broader picture. Thus, the final step to determine the profitability of
any industry like FMCG industry or Unilever’s Lifebuoy and its competitive environment, is
to use the results of each of the analyses performed, to determine whether it presents the
company with a strong prospect of competitive success and attractive profits.
An industry environment is said to be profitable, when a company can earn an above-average

profit, whereas, it is said to be unattractive, when a company’s profit margin is unappealingly
low.
Unilever initially, faced the decline of Lifebuoy soap in the UK but however, it decided to stick
with the product unchanged and to seek its future in emerging markets, which later, paid off.
In 2011, the brand delivered €500m in sales, mainly from countries like Bangladesh, India,
Pakistan and Indonesia. It had a combined 11 per cent market share in its top 15 markets and
was growing more quickly than its competitors. (Peter Vanham, 2012)
Lifebuoy, maintained the same hygienic chord with consumers. So, the core message,
supported by consumer education programs, was always the same: “wash your hands regularly
with Lifebuoy and enjoy a healthy life”. But this did not mean Lifebuoy was rolled out
everywhere in the same way.
“Sourcing, pack size, price point, factory production and etc. these attributes were tailored. “An
Indian/Bangladeshi mother does not have the same budget as a Malaysian one. So, we sell basic
30-gram soaps in India/Bangladesh and more premium liquid soap in Malaysia.” (Samir
Singh,2012). This set Lifebuoy apart from its competitors, which made it possible for Lifebuoy
to join the elite group of only 12 Unilever brands, with more than €1bn in sales by 2015.
Therefore, to sum up, it can be said that Unilever’s Lifebuoy is profitable enough, not only
from the company’s perspective, but also for the consumers, as these products help them to
make their lives easy and enjoyable, by having a healthy life and get to their hopes and dreams.
3.3 Industry Life Cycle Analysis
An industry life cycle portrays various stages where businesses operate, progress, prospect and
declines within an industry. An industry life cycle consists of five stages:
• Embryonic Industries
• Growth Industries
• Industry Shakeout
• Mature Industries
• Decline Industries
All these stages, lasts sometimes for months and sometimes for years. Each and every industry
need to go through these stages.
Embryonic stage is the startup stage for any industry, where the growth is slow, price is high,
distribution channel is poor and there are some barriers and rivalries as well. In this stage
industry do starve a lot to sustain in the industry. Next is the growth stage. When demand of
the product increases rapidly, price becomes lower, distribution channel becomes developed
and barriers to entry is reduced as well as rivalry is decreased. The third stage is known as
Industry shakeout stage. At this stage some businesses are automatically eliminated because
they became unable to grow along with the industry and starts getting negative cash flow. At
this stage usually company starts to think of merge and acquisition. Growth of revenue, profit
starts decreasing. After shakeout stage industry enters in maturity stage which is the fourth
stage. At this stage market becomes fully saturated, demand becomes limited. Growth reduces
to zero to almost zero. Whatever the growth company achieves it is from population expansion.
Prices of product starts to fall and barriers to entry increases. Decline stage is the last stage for
any industry. In this stage growth is negative, demand rapidly falls, price falls because of excess
capacity and rivalry increases as well.
Figure: Industry Life Cycle of Lifebuoy
Source: https://wikicase.fandom.com/wiki/Industry_Life_Cycle
Like all other organizations Lifebuoy is also been going through all these stages. Industry life
cycle in context of Lifebuoy is elaborated below:
• Embryonic Stage: In the introduction or embryonic stage, Lifebuoy started its business
with offering basic soap product. Price had been offered as the summation of cost and
mark up. For distribution purpose, they chose to build selective distribution channel.
For marketing strategy, they built awareness among early adopters and dealers and for
sales promotion they had a huge expenditure. They started to target the Indian blue
collared as effective customers. Price and promotion strategy have been rapid
penetration and they started with the product carbolic soap. And strongly emphasized
on distribution channel.
• Growth Stage: In the growth stage demand rapidly increased and sales increased.
Profits started to rise and early adopters were targeted. Product offerings were
increased. For distribution channel Lifebuoy built an intensive distribution. For
advertising Lifebuoy started building awareness in the mass market on health and
hygiene. Regarding sales promotion, they reduced expenditure to take advantage of
consumer demands. “Lifebuoy Special” had been offered as an extension of their
product extension. They also started to increase their distribution network and started
to do monopoly business.
• Industry Shakeout Strategy: Industry shakeout strategy is the third stage. In this stage
demand and sales becomes almost maximized. In this stage Lifebuoy started to
introduce more products like liquid hand soap, sanitizer etc. On the other hand, other
rivalries like Savlon and Dettol started to introduce same type of products. Thus,
marketing strategy of Lifebuoy became aggressive, to retain their position in the
industry.
• Maturity Stage: Lifebuoy is currently on its maturity stage. In this stage their sales are
at peak, profit is maximized, and they are targeting middle majority class people.
Moreover, the competition of Lifebuoy starts to decline. But monopoly business was
challenged, although having a record 69% market share. To retain the top-level position
in the industry, Lifebuoy started to introduce diversified brand and models. To develop
product strategy, they have started to modify products as well. The have set the price to
beat the competition and have increased the encouragement of brand switching.
But mostly, they are now focusing on profitable segment and focusing on important channel of
distribution.
4. ANALYSIS OF THE INTERNAL ENVIRONMENT

Internal Analysis recognizes and assesses resources, capabilities, and core competencies.
Internal analysis has four elements such as the organization's Current vision, Mission, Strategic
objectives and Strategies. Resources are the assets that an organization has for carrying out
whatever work activities and processes relative to its business definition, business mission, and
goals and objectives. These resources include financial resources, Physical assets, Human
resources, Intangible resources and Structural-cultural resources. Core competencies are the
organization's major value-creating skills and abilities that are shared across multiple product
lines or multiple businesses. This internal sharing process is what differentiates core
competencies from typical capabilities. Competitive advantage is the collection of factors that
sets a company apart from its competitors and gives it a unique position in the market.
Internal Analysis is performed because it is the only way to identify an organization's strengths
and weaknesses it's needed for making good strategic decisions. In order to start the strategic
management process, managers are required to conduct an internal analysis. This involves
ascertaining the business' strengths and weaknesses, by analyzing its competencies. It also
involves managers emphasizing competitive advantage of the business. For effective strategies,
the organization must exploit and expand on its strengths, as well as reduce its weaknesses;
thus, promoting its competitive advantage to gain cost-effectiveness. Civilserviceindia.com.
(2019)
There are four major areas which needs to be considered for internal analysis:
• The organization's resources, capabilities.

• The way in which the organization configures and co-ordinates its key value-adding
activities.
• The structure of the organization and the features of its culture.
• The performance of the organization as measured by the strength of its products.
Figure: Flowchart of Internal Analysis of a Business
Source: Civilserviceindia.com. (2019)

4.1. Analysis of Two (02) Questions for Internal Environment
Evaluating a Company’s Resource, Capabilities and Competitiveness few questions need to

clarify to understand lifebuoy brand’s internal strategies:
Q.1: How well is the company’s present strategy working?
Q.2: What Are the company’s most important resources and capabilities, and will they give the
company a lasting competitive advantage over rival companies?
Above question will define the internal situation of Lifebuoy and its resource, capabilities and
competitiveness. Unilever tried to bring lifebuoy in health and hygiene category. They went
through many innovation and R&D in order to bring lifebuoy in superior growth and
sustainable business continuously.
The clarifications are as follows:
Internal analysis provides the detailed understanding of the strategically important aspects of
the organization, which covers the performance analysis and key determinant of strategy.
Performance analysis includes the profitability and sales which provides an evaluation of past
strategies and an indication of the current market viability of a product line. Product portfolio
analysis considers the strength of each business the goal is to generate business mix with an
appropriate balance between new and mature products. Determinants of strategic option
include the past and current product strategic problem. (Mills, 2005, p56-58)
4.1.1 : How well is the company’s present strategy working?
Goal of the lifebuoy is to provide accessible hygiene and health solution with the affordable
price that enable people to lead a life without fear and hygiene anxieties and health
consequences. Lifebuoy is launched in 1894, consistent in lifebuoy is 110 plus year history has
been championing to support life through unbeatable protection is at the heart of the brand
name itself i.e. Lifebuoy, the guarantee of protection in threatened. In 1930’s campaign in US
was titled ‘clean hands help guard health’, encouraging the use of lifebuoy soap to kill the
germs on hands that can use health issues. A similar campaign is continuing in today with
lifebuoy hygiene programmed in countries like India, Bangladesh, Pakistan, Sri Lanka,
Indonesia and Vietnam.
The following strategies or initiates are being taken by Lifebuoy. This includes:
• R&D, technology, product design strategy: Lifebuoy’s goal is to provide affordable

and accessible hygiene and health solutions which enable the people to lead life without
fear of hygiene and anxieties and health consequences. Then product gets the large
number of the rural market. Rural customers are generally the daily wage earners and
thus they don’t have the monthly income. So the strategy revolves around what attracts
to the rural consumer and it is require changing in the packaging size. The rural
consumers are looking for the low unit price pack. So the packaging in the smaller units
and lower price packs to increase their affordability. Lifebuoy should target the other
market segment as the people who are using the shower gel and should provide the
more fragrance and the bath gel.
• Supply Chain Management Strategy: Lifebuoy introduced sachet products, mini
items and ensured a very strong inbound and outbound supply chain indeed. It ensured
all rural and wholesale channels to pursue their innovation. Al raw material and product
quality is well maintained and introduced.
• Product strategy: Apart from regular soap it has introduced hand wash in health and
hygiene category. They have also launched handy and other mini packs to have more
penetration in market. Current competitors are Dettol (Reckitt), Savlon (ACI) and other
local soaps. It describes the product in detail, which includes its special features and
how it will benefit to the consumer. The product needs to be able to meet the specific
and existing market demand or it should be able to create the niche market through
building a strong brand. Lifebuoy is the world’s largest selling soap and offers a strong
health benefit to the family. Targeting the specific country such as India where the
brand lifebuoy with its brick red soap, with its perfume and popular jingle have carried
the lifebuoy message of health across the country which makes the lifebuoy, largest
selling soap. Lifebuoy was relaunched in the 2002 with the new mix includes the
formulation and a repositioning of the brand to make it more relevant to both new and
existing customer. Mew lifebuoy offers the protection against the germs, which can
cause stomach infection, eye infection and infection in cuts and bruises. The new mixed
formulation offers the significantly superior bathing experience. The new formulation,
new health perfume and superior skin feel along with the popular red colour, have now
registered conclusive and clear preference among the existing and new user.
(UKEssays.com. 2019).
• Sales, Marketing and distribution strategy: There are many ways that the customer
will know about the product such as the advertising, public relations, point of sale,
displays, and word of mouth promotion are all traditional ways of promoting a product.
Promotion is a way of closing the information gap between sellers and buyers.
Promotion will be depending upon the promotional budget and the type of the product.
Lifebuoy will play the major role in the total turnover of the company. Sales were
declining as the consumer were moving away from carbolic based soaps to beauty soaps
with better fragrance. Through TV and print campaigns, the agency team focused
attention on the family health themes. The rural market area is covered under the
swasthya chetana project. Company is offering the lifebuoy with its other product as a
promotion. The product will reach to the consumer via distribution channel such as
distributor, warehouse, transportation, wholesaler and retailer. How the product will
reach to the consumer will affect to the sales. Lifebuoy is trying to reaches to every
rural area in India, so it will follow the single distribution channel. In a significant move
with long term benefits, company has started project streamline. And getting more
benefit from rural area company has appointed the sub stock list in the rural area to
reach every consumer. (UKEssays.com. 2019.)
• Human Resource Strategy: Unilever do believe people first and they lead purpose
with all aspects. So, they have put right people in every right place. Channel and
category mangers used to take care all competition and other allocation for lifebuoy.
Brand manager drives brand purpose and its outcome accordingly. Lifebuoy created
world record in Bangladesh through hand wash of 500,000 child in a single day.
• Pricing Strategy: The price of the product plays a large role in its market. Pricing for
product or services that are more commonly available in the market is more elastic.
Which describe as the sales is mainly depend upon the price; a change in price can make
the difference in the sales. Lifebuoy is trying to match the price with the smaller players.
Company has announced the new price policy with the introduction of the lower size
pack to get the volumes. More than bench marking competition, dropping price is all
about triggering and this has always been an integral part of their strategy.
• Market Share and other financials: Lifebuoy's skin cleansing soaps have grown from
14.7% YTD to 15% in 2013, according to Nielsen figures obtained from independent
industry sources. In the smaller handwash category, it was at 18.4% in 2010 and the
YTD from 2012 to 2013 has seen a shift from 22.3% to 22.7%. They have bought
change in price, improved design in all skus, included new features, changes features
and took market shares in every new place if it gets any potentiality. (Balakrishnan, R.
2019.)
4.1.2 : What are the company’s most important resources and capabilities, and will
they give the company a lasting competitive advantage over rival companies?
Attractiveness of Resources and Capabilities are essential element of deciding about Co’s
health. Co’s R&C are its Competitive Asset and Important determinants of it are the
competitiveness, & ability to succeed in the marketplace.
Resources
Competitive Assets
Capabilities
In other words, as the earlier scholars explained, according to the old notion, the concept of
creating and edge in profitability was explained through: Distinctive Competency.
D/C are firm-specific Strengths that allow a co to: Differentiate its product or, Achieve
substantially lower costs than its rival. Example: Lifebuoy sachet– development & operation
of manufacturing process.
Modern concept extended this idea by stating that-a company creating Distinctive competency
means creating competitive assets which brings strong competitiveness.
In order to analysis Resource and Capabilities, 2 factors are related:

1st – Identifying the company’s Resource & Capabilities
2nd – Assessing the Competitive Power of a company’s Resource & Capabilities

Let’s brief in detail here;
a. Identifying the company’s Resource and capability:
Resources are the productive input or competitive asset that is owned and controlled by firm.
Or, it is factor endowment – that allow a company to create value for its customers. Resource
are divided into two types.
Tangible – Physical, Financial, Technological, Organizational (infrastructural)
Intangible – nonphysical entities; Human assets, brand name, reputation, network/relationship
Competitive asset is important for all products either in price, features or quality. In marketing
its called Unique selling proposition (USP). This will distinguish a brand than others and
superior profitability. Here lifebuoy has all of these. It is competing in health and hygiene
category and driving purpose to reduce child mortality due to hygiene issues. They also reflect
their marketing accordingly. Like Guinness world record through hand wash activation in a
single day with 500,000 children.
Well planned market strategy can be vital to the growth for the business. Decisions are mainly
taken since the marketing plan. Marketing strategy can help to not only define the business
goals but also help to develop the activities to achieve. To make the marketing strategy the first
thing is required is the company’s unique selling proposition, which makes the product apart
from the rest of the market. What is the unique in the product? Why should the consumer
choose the product? This are the points required to make the strategic plan. The next thing is
the target market. Which segment of the consumer the product is targeting. Now the next step
is the positioning of the product, and finally the marketing method. India is the major market
for the lifebuoy. Lifebuoy is the leading brand in the India, Bangladesh.
First, is that the company has examined their brand portfolio very thoroughly and decided to
concentrate on some major brands. Company select this brand on the several criteria such as
their absolute size, brand strength, brand relevance, competitive advantage and potential for
growth. This brand will receive a disproportionate share of their marketing appropriation spend,
and will be backed with the high level of relevant innovation based on true consumer
insight as well as new technology platforms. The new technology will give the opportunity to
reduce their cost and be much more competitive against low priced competition and it also
helps to improve the quality of the product. One of the major strategic thrust is to grow the
business by focusing on the brand.
Second, strategic thrust will be to explore growth opportunities in new channels which reflects
the start the new consumption opportunities in the different methods. Such as Lifebuoy soap
provide free emergency mobile washing facilities to Londoners in 1940. Lifebuoy vans were
equipped with hot showers, soap and towel. Company has appointed dedicated market
activation managers who will concentrate on innovative promotion and strategies to grow the
share.
Third, one is to continue to reduce the total cost. Company will get media scale and efficiency
benefits and are also exploring other shared services. It will also maintain a tight control on
overheads, including corporate center costs.
Fourth, strategic thrust is to build a proactive, flexible and fast-moving organization culture.
Organization is reducing corporate center involvement in operating decision making, it also
enhancing dramatically, the linkage between rewards and actual performance through a
combination of variable pay bonuses and stock-related schemes. (UKEssays.com. 2019).
Capabilities:
Capabilities are built up with Resource & draw on some combination of the firm’s Resource as
they are exercised. Refers to a company’s skill at coordinating its Resources & putting them to
productive use to make company’s decision, control internal process.
Company specify how & where decisions are made within a company, kind of behavior the co
rewards & the company’s cultural norms & values. Ex: Apple’s & 3M’s product innovation
capability; Pepsico for its marketing and brand management.
Virtually all organizational Capabilities are – knowledge based, residing in people and in a co’s
intellectual capital, or in organizational processes and systems which embody tacit knowledge.
Capabilities are harder to categorize than resources. There are two approaches to identify
Capabilities;
1st – Looking over the Firm’s resource & consider if & to what extent the firm has built up any
related capabilities takes the completed listing of a firm’s Resource as its starting point – si
Capabilities are built on Resource & utilize them as they are exercised – it provides a strong
set of clues about the type of capabilities the firm is likely to have accumulated.
2nd– Functional approach.
Relates to specific functions; typically involve a single department or Org unit Ex: Capabilities
in R&D, or direct selling, promotional pricing, innovation
Problem with this approach – many of the most imp Capabilities are inherently cross-functional
capability draw in several different kinds of Resource and are multi-dimensional in nature –
they spring from the effective collaboration among people from different types of expertise
working in different department. Thus cross-functional Capability & other complex capabilities
involving numerous linked and closely integrated competitive assets are referred as –Resource
Bundles.
A Resource Bundle is a linked and closely integrated set of competitive assets centered around
one or more cross-functional abilities.
b. Assessing the Competitive Power of a Co’s Resources & Capabilities
Assessing Company’s Competitive Power – means going beyond identifying Resource &
Company to review its caliber. it requires identifying which Resource & Capability are
competitively superior and to what extent they can support a company’s quest for C/A over
rivals’ Competitive power of the R& C determines the extent of the sustainability of C/A. There
are four tests of a R’s Competitive power;
The Four Tests of a Resource’s Competitive Power
The competitive power of a Resource or Capability is measured by how many of FOUR

specific tests it can pass. These tests are referred as VRIN tests for sustainable competitive
advantage.
V= Value
R= Rare
I=Inimitable
N= Non-substitutable
Lifebuoy provides 100% better protection from germs as compared to ordinary soaps is main
usp for them in product. Also, they play in price, and distribution. All of these ensured
competitive advantage for lifebuoy. Lifebuoy is the current shirt sponsor of Bangladesh
National Cricket Team since 2018. Investment in marketing is very high as a brand from
lifebuoy. It has established a strong positioning of this brand with the industry. Lifebuoy 9ml
is also a fantastic innovation from Unilever and it allowed this product for more reach.
Consumers can purchase this product with minimum spending and can have the hygiene
feelings. Unilever has huge investment in CSR and do activation in numerous schools for better
life of children. Training and other awareness activates run all over the year within thousands
of schools.
With their age-old slogan 'Lifebuoy Jekhane Shasthho Shekhane,' Lifebuoy has indeed been
fighting the good fight in Bangladesh. Since 1964, the brand has been with its consumers
through and through, providing supreme healthcare and protection. Meeting the needs of 160
million Bangladeshis is no walk in the park, but Lifebuoy has undertaken this challenge for the
long haul. a simple habit of hand washing with soaps, this comes down to a minimum. Lifebuoy
initiated 'Help a Child Reach 5' programmed aiming to reduce the number of deaths with this
simple yet effective habit. This one act can save lives for the greater good and allow a child to
experience the joys of childhood to the fullest. Lifebuoy plans to not only create greater
awareness but also bring about sustained changes in hand washing behaviors, to curb diarrhea
and child mortality. In light of the situation, Lifebuoy focuses to make a difference among 1
billion people through their hand washing programs by 2020. The brand continues to impart its
mission and goal among enthusiastic individuals. “Lifebuoy Lifesaver Volunteer Programmed”
is the latest initiative taken by Lifebuoy Bangladesh. It has been launched on Global Hand
Washing Day this year. This platform allows participants to join Lifebuoy's 'Help a Child Reach
5' campaign by volunteering in Lifebuoy's 'School of 5' programmed. (Weekend, S. and Day,
A. 2019)
4.1.3: What are the Co’s Strengths and Weaknesses in Relation to the
Market Opportunities and External Threats?
In evaluating a company’s overall situation; Major concern– if the company is able to pursue
attractive market Opportunity and defend against external Threat – to its future well-being. i.e.
it is calling for SWOT Analysis. The BASIS for crafting a strategy that capitalizes on the
company’s Strength, overcome its Weakness, aims squarely at capturing the company’s best
Opportunity, and defends against competitive and macro-environmental Threat.
a. Identifying a company’s Internal Strengths
❑ S – is something a company is good at doing / or an attribute that enhances its

competitiveness.
❑ S – depends on the quality of R& C.
❑ R&C passes the VRIN Test that becomes company’s greatest strengths.
Quality of
Quality of Assets
Capabilities
Internal
STRENGTH
Assessing a Co’s Competencies – What activities Does it Perform well:

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One way to appraise the degree of company’s S is ;
• analyzing its skill level in performing key pieces of its business (Primary or
support activities)
• When company’s proficiency rises from that of mere ability to perform an

activity to the point of being able to perform it consistently well and at acceptable
cost, it is said to have – Competence – a true capability
The Competency that created C/A can also be defined in two other terms:
> Distinctive Competence:
• if a company’s competence in some activity is superior to that of its rivals.
> Core Competence:
• Is an activity that a co performs proficiently and that is also central to its strategy and
competitive success.
• It is more competitive valuable strength than a competence because of the activities'

market success and profitability.
• Often it can be leveraged to create new market or product, as the engine behind
company’s growth.
b. Identifying a Co’s Weakness and Competitive Deficiencies
Weakness or Competitive Deficiency – is something that a co lacks or does poorly in

comparison to rivals.
❑ Weakness – can relate to:
1. Inferior or unproven skills, expertise or intellectual capital in competitively

important areas of the business.
2. Deficiencies in competitively important physical, organizational or intangible

assets
35 | P a g e
3. Missing or competitively inferior capabilities in key areas
❑ Competitive Weaknesses are thus internal shortcoming that constitute Competitive

Liabilities.
❑ Whether a Co’s Weaknesses makes it competitively vulnerable depends on
1. how much they matter in the marketplace
2. If they are offset by the company’s strengths
❑ Constructing a list of Strength & Weaknesses is known as Strategic Balance Sheet.

Where:
• S represents Competitive Assets and Ideal situation: S

outweighs W
• W represents Competitive Liabilities 50-50 is not desired
c. Identifying a Company’s Market Opportunities.
❑ Market Opportunity - shapes Company’s Strategy.
❑ Managers First identify the MO & appraise the growth and profit potential each one
holds – and then formulate the strategy accordingly.
❑ Depending on the circumstance, Opportunity can be
o plentiful or scarce;
o fleeting or lasting;
o range from wildly attractive must to pursue) to marginally interesting (because

e of high risk or questionable profit potential).
d. Identifying the Threats to a Co’s Future Profitability
❑ Threat stems from factors like
o emergence of cheaper technology,
o the entry of lower-cost foreign competitors,
o new regulations that makes it costly for the company than the competitors,
36 | P a g e
o unpredictable demographic shifts
o Sudden political shifts
Few points need to go through;
• External threats pose no more than a moderate degree of adversity,
• Or they may be imposing enough to make a co’s situation look more fragile
• Rather most of the co which were shaken or declared bankrupted due to lack of corporate
governance issues, not external threats
❑ What does SWOT do?
It is more than making a list of S,W,O,T
❑ The TWO most important part of drawing SWOT are:
1. Drawing conclusions from the SWOT
2. Translating these conclusions into strategic actions to better match the co’s
strategy to its internal strengths and market opportunities, to correct important
weaknesses and to defend against external threats.
➢ Drawing conclusions from the SWOT
1. By answering the following set of questions, the SWOT listing reveals the overall
situation:
2. What are the attractive aspects of the co’s situation?
3. What aspects are of the most concern?
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4. Are the co’s internal S & Competitive Assets sufficiently strong to compete
successfully?
5. Are the co’s W & Competitive Deficiencies of small consequence & readily correctable,
or could they prove fatal of not remedied soon?
➢ Translating these conclusions into strategic actions
Final step of SWOT is to translate the diagnosis into action for improving the co’s STRATEGY
and business prospects.
A co’s internal Strength should always serve as the basis for its strategy – placing heavy
reliance on a co’s competitive assets - is the soundest route to attracting customers and
competing successfully against rivals.
Lifebuoy is one of the oldest products from Unilever. Lifebuoy was the first soap to have a
disinfectant chemical carbonic acid in it which gave it strong medicinal scent and red color.
Lifebuoy is amongst the top 15 brands in the world and is a billion-dollar brand from many
years in the past.
4.1.4: SWOT ANALYSIS OF Lifebuoy
Strengths in the SWOT Analysis of Lifebuoy:
Brand Credibility: Lifebuoy has been successful in gaining the trust of its customers
have been in the market for over 100 years. Its health-centric approach and
communication have helped it gain credibility and a loyal set of customers.
Medicinal approach: Lifebuoy has positioned itself as a product with a medicinal

approach which could combat germs and provide a healthy disinfectant bathing soap.
Affordable: Lifebuoy has been priced at a range in order to be affordable to all kinds
of markets especially rural markets.
Strong Distribution: Lifebuoy has a strong distribution channel worldwide which

makes the product available in the farthest corner of various countries. Lifebuoy has
38 | P a g e
made special efforts to be present in the rural markets where the demand for the
product is really high.
Product Line Extension: Lifebuoy has been successfully able to extend its product
line by bringing out successful products like hand wash, body wash and hand sanitizer.
This has helped Lifebuoy increase its revenues.
Unilever Product: Lifebuoy has a competitive advantage coming from the armory of
Unilever which provides it support in distribution as well as in finances.
Awareness campaigns with a social message: Lifebuoy has come out with various
awareness campaigns meanwhile also giving a social message. Lifebuoy’s “hath
dhoye kaj koro?”mission centered on proper hand washing during Kumbh Mela in
Dhaka is a prime example of the same.
Weaknesses in the SWOT Analysis of Lifebuoy:
Perception of a male centric brand: Lifebuoy is perceived to be a male centric brand

and even after many efforts by Lifebuoy to project the brand as a family brand.
Not popular in urban markets: While the brand has priced the product in order to
be available for all especially rural markets, its urban market penetration is relatively
low.
Perception as an inferior product: Due to its low prices and an image of “not being
beauty soap”, Lifebuoy is considered as an inferior product.
39 | P a g e
Opportunities in the SWOT Analysis of Lifebuoy:
Increasing disposable income: Disposable incomes of people around the world are
increasing and thus it is also expected that consumption in the FMCG industry is going
to increase which will eventually increase sales.
Promote Lifebuoy with a message: Unilever has concentrated in providing social

messages by promoting its products. Lifebuoy has also been one of the many products
which have been promoted with a social message. To add to this Lifebuoy should take
up on missions to fight global epidemics.
Increasing health awareness: There is an increase in health awareness globally

which can provide Lifebuoy an advantage considering its disinfectant composition.
Threats in the SWOT Analysis of Lifebuoy:
Intense competition: Lifebuoy is subjected to intense competition from various local

as well as global products such as Dettol and Savlon etc. Intense competition impacts
market share.
Market Cannibalization: Unilever has many products in same category such

as Lux, Dove etc. Although all the products are positioned to different market
segments, but they cannibalize each other at a microscopic level.
Increasing awareness of Herbal products: Awareness of herbal based products is

increasing globally. This can affect Lifebuoy’s market which is essentially a chemical
based product.
4.1.5: How do a Co’s Value Chain Activities Impact its Cost Structure &
Customer Value Proposition?
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A company is a collection of activities that are performed to design, produce, market, deliver and
support its product (or service). Its goal is to produce the products in such a way that they have
a greater value (to customers) than the original cost of creating these products. The added value
can be considered the profits and is often indicated as margin. LIFEBUOY has a strong
infrastructure in maintaining their value chain activities.
A Co’s Primary& Secondary Activities Identify the Major Components of Its Internal Cost
Structure
➢ The primary activities - that are foremost in creating value for customers
➢ Secondary/Support Activities that facilitate and enhance the performance of primary
activities.
➢ The exact nature of Primary and secondary activities – that make up a value chain - vary
according to – specifics of a co’s business.
➢ Whatever price a co set, typically it is has to be less than its value. i.e V>P – this is Consumer
Surplus. (Hence Price must be less than V)
41 | P a g e
4.1.6: Is the Co Competitively Stronger or Weaker Than Key Rivals?
> Using Resource Analysis, Value Chain Analysis and Benchmarking – to determine – co’s
competitiveness on value & cost is necessary but not sufficient.
> A more comprehensive assessment needs to be made of the co’s overall competitive strength.
& that can be done by answering the following two questions:
1st: how does the co rank relative to competitors on each of the important factors that
determine market success
2nd: all things considered does the co have a net competitive advantage or disadvantage
versus major competitors?
Lifebuoy is working actively against competitors. They have more than 85% market share in
health and hygiene category.
4.1.7: What Strategic Issues & Problems Merit Front-Burner Managerial Attention?
a) The final and most important analytical step is to be sure about
❑ What specific strategic issues mgt need to address, & resolve - for the co to be more
financially competitively successful in the years ahead
b) This step involves drawing on the results of both industry analysis and the evaluation of
the co’s internal situation
c) Manager needs to get a clear fix on exactly
❑ what strategic and competitive challenges confront the co,
❑ which of the co’s shortcomings need fixing,
❑ what specific problems merit co’s managers’ front burner attention
Lifebuoy will need to work in baby product category. This will help them to increase market
share and manager will have more space to increase their product line.
5. DISCUSSION AND RECOMMENDATION

5.1. Discussion of Mission & Vision
The vision statement is very much straightforward. The problem to solve and the path headed
to solve the problem are clearly mentioned. This helps to look forward and create a mental
image of the furthest condition that Lifebuoy wishes to accomplish. The mission statement is
42 | P a g e
built on that vision so that it helps to serve the ultimate purposes and to direct employees,
consumers, shareholders and everyone else associated with it. The core values are created
accordingly. So, it’s an ideal path to the successful and sustainable business Lifebuoy has
planned to achieve.
5.2. Discussion of External Environment
One of the first steps in the strategic assessment process generally involves identifying the
organization’s strengths, weaknesses, opportunities and threats (the SWOT analysis). This
helps build a strong foundation of knowledge, to ensure the development of a strategic plan
that remains relevant, meets the needs of the changing population, and makes the best of the
available resources.
Unilever spends a significant amount of time and effort in the External Assessment, or External
Environmental Scan that may influence the mission and goals of the organization, and the
functionality of its brands like Lifebuoy in the market. They also conduct the analysis of
competitive and collaborative forces and agents, revealing the opportunities and threats that
confront the organization.
Above all, from this study we can recommend that, within the conscious or unconscious mind,
consumers basically need two kinds of soaps which are antiseptic soap for the protection from
germs and beauty care soap for beautification. For Lifebuoy’s, external environmental analysis,
the following suggestions can be made: (PESTEL)
• Legal/political factors: These are the uncertainties that are extremely variable in the
political conditions for countries like Bangladesh. Constant political instabilities do
affect Unilever, in terms of building new relations and sustaining that with political and
legal parties. Thus, the company needs to maintain a very strong liaison with the legal
and political parties for its smooth operation.
• Social/Cultural factors: Unilever for its Lifebuoy brand, needs to be very careful in
implementation of its promotional campaigns since, the social cultural environment
varies from country to country and in Bangladesh, it is very conservative and any
suggestive advertisements usually face a lot of criticisms from the consumers as well
as the rival firms point of view.
43 | P a g e
• Technological factors: Lifebuoy has unveiled a breakthrough technology in germ
protection - Activ Naturol Shield and proved themselves as part of the proprietary group
through innovation in the soap industry. This technology has been launched in India
through Lifebuoy clini-care10, with proven 10 times better germ protection compared.
• to leading germ protection soaps. So, this proprietary technology and know-how needs
to be protected and further investment in Research and development is required as well.
Moreover, consumers, nowadays are tech-savvy and so, more focus should be given on
line advertising strategies via social medias, to build brand equity and to maintain
customer loyalty. For e.g. Lifebuoy can carry out promotional campaigns of Global
Handwashing Day (October 15) to create a content and increase the frequency of
advertisements.
• Changes in societal concerns and lifestyle: Nowadays, both men and women are
concerned about hygiene and as well as grooming. So, Lifebuoy, which is considered
as a family soap can further, expand its targeting and come up with a wide range of
products, to serve both the purposes.
• Market Commitment Strategy: Being the first in the market, Unilever has shown strong
commitment with its brand of lifetime i.e. Lifebuoy and that commitment to its brand
has really foster the growth of Unilever as well as its brand of Lifebuoy. But from the
recent decade Unilever is no more showing the strong commitment to Lifebuoy because
over the period, many of the competitors came in the market, with new innovative
product, better market strategies and stronger commitment. In the present scenario,
Unilever is just showing an average commitment to its brand of Lifebuoy, which has
really put its brand on the back foot. This needs to be improved for long term profitability
and sustainability.
44 | P a g e
• Competitive Intelligence: Taking expert opinions on PESTLE & other factors

hampering the external environment from third parties or from the exerts from different
functional areas of the business, can lead to in-dept analysis, identifying, analyzing and
solving critical situations as well. Moreover, it is the duty of the managers to prepare
their teams in way, so that distinctive competencies, along with the combination of
resources and capabilities can be used for achieving competitive advantage and superior
profitability.
• Surviving the Mature Industry Stage: Since Lifebuoy is in the mature stage so, Unilever
needs to come up with both proactive and reactive measures, in terms of brand.
5.3. Discussion of Internal Environment
Lifebuoy is the most seasoned brand of the Unilever which is giving the health and hygiene
arrangements to the family. Lifebuoy is making the seventy percent of its deals within the rustic
advertise. Inner investigation of the lifebuoy reflects the innovation, item confirmation.
measure, scent. Lifebuoy cleanser has the steadfast client and is the showcase driving brand is
the quality of the item. Item encompasses a constrained scent which makes the constrained
showcase for the item. Company can enter the diverse section of the advertise which is the
opportunity and the other hand the competition is expanding which makes the advertise more
competitive. Company is mainly targeting the provincial advertise for the expanding the deals.
Unused lifebuoy isn't as it were focusing on to the male but too it is focusing on to the family
to secure from the germs. Whereas relaunching the lifebuoy within the 2000, lifebuoy is
focusing on the family and has increment the advertise section. Concurring to perspective
company can increment the advertise share by expanding the item extend. Company can
dispatch the cleanser assortment. These days within the childcare item Johnson and Johnson is
the driving company. Unilever can increment the deals volume of the lifebuoy by entering the
infant care item. This sector of client isn't focused on by the lifebuoy. Whereas propelling the
infant care item such as Lifebuoy infant cleanser, lifebuoy child oil, lifebuoy infant talcum
powder. The company can reach to the mass customer
35 | P a g e
6. CONCLUSION
Through branding, Lifebuoy long with other Brands of Unilever has built a formidable brand
image among the consumers of not only Bangladesh but across the globe. Along with that,
numerous hand washing campaigns and sponsorship has only cemented their place on the top
of the minds of the consumers. Among all the brands of Unilever, Lifebuoy has achieved to
conquer the urban as well the rural market since their inception in Bangladesh. This shows how
well they do their research on the market as well as make their strategy and how meticulously
they lay out their strategic plan for capturing the market. This report includes company’s vision,
mission and the strategic objectives and planning of the Unilever. External and internal
environment analysis helps to make their future strategy from the past and present scenarios
prevailing in the environment. Finally, we explored the strategic functional plans for Lifebuoy
which ultimately covered the strengths, weaknesses, opportunities and threats of the brand and
the company as well.
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7. REFERENCES
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ct_Development_and_Marketing_
Process_A_Study_on_Introducing_New_Bath_Soap_Containing_Antiseptic_and_Beauty_Ca
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Balakrishnan, R. (2019). Lifebuoy: How the brand's transformation win its fans. [online] The
Economic Times. Available at: https://economictimes.indiatimes.com/lifebuoy-how-the-
brands-transformation-win-its-fans/articleshow/18699446.cms [Accessed 20 Nov. 2019].
Care, B. (2019). Lifebuoy. [online] Unilever global company website. Available at:
https://www.unilever.com/brands/personal-care/lifebuoy.html [Accessed 23 Nov. 2019].
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Corporate Finance Institute. (2019). Industry Life Cycle - Identify Different Stages of An
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analysis lifebuoy/
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Skrabanek, B. (2019). Difference Between Vision and Mission Statements: 25 Examples.

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40 | P a g e
8. APPENDIX
Questionnaire
1. Why do you think consumers prefer lifebuoy over other brands?

a. Brand Value
b. Pricing
c. Quality
d. Availability
e. Others
2. What do you think about lifebuoy products?

a. It lives up to the promise (Kills 99% germs)
b. Better than rival products
c. Same as its rival products
d. It’s an ordinary product, nothing exceptional
3. What is your perception about Lifebuoy’s product quality?

a. Has improved over the years
b. Quality has gone down over the years
41
c. Quality has remained same throughout the years
4. What do you feel about the on-going branding and handwashing campaigns
conducted by Lifebuoy?
a. It is creating awareness in importance of handwashing
b. It is attracting more consumers
c. It is not making in any impact in consumers’ minds
d. It is just some activities to gain some brand name
e. Others
5. What can Unilever Bangladesh Ltd. do to ensure continued success of the Lifebuoy
brand?
a. Focus on advertising
b. Focus on running more campaigns
c. Invest on increasing their product range
d. Focus on increasing quality
e. Others
42

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SWOT Analysis of Lifebuoy

SWOT Analysis of Lifebuoy

North South University

DR. CHOWDHURY SAIMA FERDOUS

SCHOOL OF BUSINESS & ECONOMICS

MD. NAWAZ SHARIF TANVIR 181 5347 060

Date of Submission: 29th December 2019

Dr. Chowdhury Saima Ferdous

Professor, School of Business & Economics

Subject: SWOT analysis of Lifebuoy

Md. Nawaz Sharif Tanvir

Unilever is a British–Dutch multinational fast-moving consumer goods company. It is offering

1.2. Objective of the Study

2.1 Vision Statement

2.2 Mission Statement

2.3 Analysis of Mission & Vision Statement

⇛ How do we serve them?

3. ANALYSIS OF THE EXTERNAL ENVIRONMENT

An external analysis is the assessment of the changing global environment, in which an

Unilever’s macro-environment consists of six principal components, precisely own as the

3.1. PESTLE Analysis

3.2. Analysis of Six (06) Questions for External Environment

Q:1 How strong are the industry’s competitive forces?

Q:4 What strategic moves the rivals likely to make next?

Q:6 Is the industry outlook conducive to good profitability?

Figure: Porter’s Five Forces Model

The Bargaining Power of Buyers: Lifebuoy’s business depends on the response of

Product innovation: Innovation in Product Development and Marketing Processes

The Strategic Group Mapping of Soap Industry in Bangladesh

Figure: Strategic Group Mapping of Soap Industry in Bangladesh

Source: (Thompson, Peteraf, Gamble etl, 2020, p. 71-73)

Some of the key factors for the lifebuoy are as follow:

Improve health and hygiene

3.2.6. Is the industry outlook conducive to good profitability?

An industry environment is said to be profitable, when a company can earn an above-average

3.3 Industry Life Cycle Analysis

Figure: Industry Life Cycle of Lifebuoy

4. ANALYSIS OF THE INTERNAL ENVIRONMENT

• The organization's resources, capabilities.

Figure: Flowchart of Internal Analysis of a Business

Source: Civilserviceindia.com. (2019)

4.1. Analysis of Two (02) Questions for Internal Environment

Evaluating a Company’s Resource, Capabilities and Competitiveness few questions need to

Q.1: How well is the company’s present strategy working?

The clarifications are as follows:

4.1.1 : How well is the company’s present strategy working?

• R&D, technology, product design strategy: Lifebuoy’s goal is to provide affordable

In order to analysis Resource and Capabilities, 2 factors are related:

2nd – Assessing the Competitive Power of a company’s Resource & Capabilities

a. Identifying the company’s Resource and capability:

Tangible – Physical, Financial, Technological, Organizational (infrastructural)

Intangible – nonphysical entities; Human assets, brand name, reputation, network/relationship

2nd– Functional approach.

b. Assessing the Competitive Power of a Co’s Resources & Capabilities

The Four Tests of a Resource’s Competitive Power

The competitive power of a Resource or Capability is measured by how many of FOUR

a. Identifying a company’s Internal Strengths

❑ S – is something a company is good at doing / or an attribute that enhances its

❑ S – depends on the quality of R& C.

Assessing a Co’s Competencies – What activities Does it Perform well:

• When company’s proficiency rises from that of mere ability to perform an

> Distinctive Competence:

• if a company’s competence in some activity is superior to that of its rivals.