Beruflich Dokumente
Kultur Dokumente
Submitted To:
Chairman
Internship Placement Committee
Submitted By:
Exam ID: 110469
Class ID: 793, Registration No: 30939
4th Year, 8th Semester, BBA Program
Academic Session: 2010-11
Date:
19th January, 2015
Subject: Submission of internship report on The Knorr Story of Unilever Bangladesh Limited
Dear Sir,
It is a great pleasure to submit this report based on my internship experience at Unilever Bangladesh
Limited with the activations of Knorr Brand. I have prepared the report as per your guidelines and
recommendations. I am looking forward for your sincere judgment on this report.
I tried my level best to fulfill the requirements by engaging myself seriously and giving my best effort to
prepare this report. It has enabled me to gain a better understanding of my experience which will help me
in my career development.
Your kind acceptance and judgment will surely inspire me.
Sincerely yours,
Exam ID: 110469
Registration Number: 30939
Class ID: 793
4th year, 8th semester
Batch Number: 20th, BBA Program
Academic Session: 2010-2011
Acknowledgement
This is my humble attempt to present gratitude to those who have made it possible to prepare this report.
First and foremost I present my gratitude to the Almighty Allah for making everything possible. It would
never be possible without the help of the Almighty.
I would also like to thank my family, friends and all my teachers who have supported me throughout the
internship program and also this report.
I would like to present gratitude to my Line Manager in Unilever Bangladesh, Mr. Ishtiaque Shahriar.
Without his help and effort to teach me the ways of a multinational company I would be lost. He was kind
enough to teach me, trust me and give responsibilities to me so that I could learn.
Last but not the least I would like to express my gratitude to my assigned internship supervisor, Ireen
Akhter, for the valuable guidance and support. I really appreciate the way she has guided me through this
report.
Table of Contents
Title
Page No.
Executive Summary
Chapter 1
Introduction
Chapter 2
Company Profile
Chapter 3
13
Chapter 4
15
Chapter 5
Knorr STP
17
Chapter 6
Marketing Mix
19
Chapter 7
24
Chapter 8
Conclusion
25
Reference
26
Table of Figures
Title
Page No.
Figure 1
10
Figure 2
Departments of UBL
11
Figure 3
12
Figure 4
15
Figure 5
16
Figure 6
20
Executive Summary
This report aims to explore the issues revolving the market penetration and activation of the Unilever global
brand Knorr, in Bangladesh. This report further investigates the marketing aspects of Knorr to assess the
overall impact and success of the launch. Information was obtained observing Knorrs market activation
campaigns, talking to employees and browsing through online articles on Knorr. The report introduces both
Unilever and Knorr to the readers and critically evaluates the different marketing and competitive aspects
of the launch in Bangladesh. The report examines the problems Knorr might be facing and has unlocked
new areas that need attention and startling findings. The results recommend possible solutions that
Unilever Bangladesh Limited can adopt to mitigate the aforesaid problems. Given the introduction of Knorr
in Bangladesh in recent times and absence of any report on such topic, these finds highlights the
significance of this report and suggests that further research and analysis can be carried out in the future.
Chapter 1: Introduction
1.1 Origin of the Report
This report has been prepared as a part of the requirements of the Internship course. For the purpose of
this course, I completed my internship in Unilever Bangladesh Limited. This report has been prepared under
the supervision of my internal supervisor, Ireen Akhter, Institute of Business Administration, Jahangirnagar
University, Bangladesh and Mr. Ishtiaque Shahriar, Activation Manager of Unilever Bangladesh Limited.
Throughout my internship I worked in the Activation (Brand Building) Department of Unilever Bangladesh
Ltd. Hence with the permission of my supervisor, my internship report has been prepared on the market
penetration and activation of Knorr, a global Unilever brand, recently launched in Bangladesh.
1.2 Objective of the Internship Course
The objective of this course is to unleash the theoretical knowledge of the students and enable them to
acquire a firsthand practical work experience. The primary objective is to get the students adapted to the
workplace, which they would soon embark upon. Internship enables a student to gain insight of the realworld outside the fortress of education. Also students can learn more about the area they will soon work
and get an on-the-job training. Writing the internship report allows a student to mesh the theoretical and
practical experiences of work.
1.3 Limitations of the report
Although this report has provided enlightening insights but it has some limitations. Firstly, no primary
research data have been collected for the purpose of this report. This raises questions against the validity
of the data presented throughout the report. Data have been collected within a very short span of time
and this report has been prepared within a very short time. A comprehensive report would require further
research on these issues with more time, data and observation.
foster health and contribute to personal attractiveness, that life may be more enjoyable and rewarding for
the people who use our products'. This was long before 'Corporate Mission' was coined, but these ideas
have stayed at the heart of the business, even if their language and the notion of only women doing
housework has become outdated. Although Unilever wasn't formed until 1930, the companies that joined
forces to create the business we know today were already well established before the start of the 20th
century. Unilever's founding companies produced products made of oils and fats, principally soap and
margarine. Tough economic conditions and the First World War made trading difficult for everyone, so
many businesses formed trade associations to protect their shared interests. Unilever was founded on 1
January 1930 by William Hulme Lever, Antonius Johannes Jurgens and Samuel van den Bergh and when
Lever Brothers merged with Margarine Unie. Since its inception Unilever grew by acquiring brands and
becoming what it is today. In a history that now crosses three centuries, Unilever has created products
that help people get more out of life cutting the time spent on household chores, improving nutrition,
enabling people to enjoy food and take care of their homes, their clothes and themselves.
2.3 Mission
The world in which we operate is changing and consumers are increasingly bringing their views as citizens
into their buying decisions, demanding more from the companies behind the brands. They want companies
and brands they trust. In the last five years, Unilever have built their business by focusing on their brands,
streamlining how they work, and improving their insight into the evolving needs and tastes of consumers.
Unilevers mission is to add vitality to life. Unilever meets every day needs for nutrition, hygiene and
personal care with brands that help people feel good, look good and get more out of life.
The company sees a growing consumer need for:
A healthy lifestyle
More variety, quality, taste and enjoyment
Time, as an increasingly precious commodity
Helping people to feel good, look good and get more out of life, which will enable them to meet these
needs and expand their business.
Unilever is in a unique position to understand the interrelationships between nutrition, hygiene and personal
care. This is possible because of its strong science capability and its locally rooted consumer insight. It is
by bringing all this together that the company can strive to contribute to quality of life and wellbeing adding vitality to life. The long-term success of the business is intimately interconnected with the vitality
of the environment and the communities in which the company operates. The environment provides
10
Unilever with raw materials and the ingredients necessary to make the products. Healthy, prosperous
communities provide the company with a healthy, growing consumer base.
2.4 Strategy
Unilevers aim is to win share and grow volume profitably across categories and countries. Unilever has a
11
standards and sound principles of corporate governance. With 10 successive years of double digit growth,
the Company has proved that businesses in Bangladesh can successfully grow with ethical practices.
2.7 Organization Structure
Unilever has two parent companies: Unilever NV in Rotterdam, Netherlands, and Unilever PLC in London,
United Kingdom. Both Unilever companies have the same directors and effectively operate as a single
business. The current non-executive Chairman of Unilever N.V. and PLC is Michael Treschow while Paul
Polman is the CEO. Unilever country businesses report to Regional Presidents through the clusters that
they geographically are located in. Unilever Bangladesh falls in the South Asia cluster of the AAC (Asia,
Africa, Middle-East, Turkey, & Central & Eastern Europe) region. The Regional President for AAC reports to
the Unilever Group Chief Executive. Unilever Bangladeshs governing body is the Board which comprises
representative Directors of all its shareholders. The day to day management of the Company is with the
Companys Leadership Team comprising the Chairman & Managing Director and the functional Directors.
There are 5 functional Directors who, in addition to holding joint responsibility for the running of the
business, also head their respective functions.
The Company has management strength of 200+ across different levels and another 600+ are employed
as non-management staff (NMS). Unilever operations in Bangladesh provide employment to over 10,000
people directly and through its dedicated suppliers, distributors and service providers. 99.5% of UBL
employees are locals and they have equal number of Bangladeshis working abroad in other Unilever
companies as expatriates.
UBL
Departments
Brand
Building
Finance
Supply Chain
HR
Customer
Development
12
is reflected in its winning recognition as best brands. Unilever Bangladesh Limited has been bestowed with
25 awards in the month of November by Commward 2014 and Best Brand Awards 2014.
Product Categories
Home and Personal
Care
Home Care
Fabric Wash
Personal Care
Dish Wash
Skin Care
Hair Care
Oral Care
Foods
Deodorant &
Fragrance
Tea
Savory
Water Purifier
Brand
Wheel
Rin
Surf Excel
Vim
Ponds
Vaseline
Fair & Lovely
Dove
Lux
Lifebuoy
Clear
Sunsilk
Dove
Close Up
Pepsodent
Axe
Rexona
Brooke Bond Taaza
Knorr
Pureit
13
14
15
16
Strengths:
Weakness:
SWOT Analysis
markets only
Opportunity:
> Disposable income has
Threat:
purchasing power.
is on the rise.
17
18
5.3 Targeting
Target customers: The primary target market for Knorr is people who prepare meals at homes every day
for loved ones, primarily homemakers and mothers, whose relationship with cooking is both positive and
negative. This is because it is a ceaseless, intense and mundane everyday task, which they get tired of at
some point. In addition cooking increasingly demands their time, skills and ideas to prepare meals from
the start every single day. On the other hand, it is a way of pleasing and nurturing their loved ones with
great taste and good nourishment, which would earn them appreciation and recognition in the household.
For mothers, cooking is a source of influence and how they shape their household it defines their role in
the house and fabricates their identity. Also mothers are the people who will buy soup since mummy
decides what children will have.
19
20
TV
Radio
Digital
Activations
POSM
21
create Classic Tomato Soup and Chicken and Corn will create Sweet Corn Chicken Soup. Amongst the good
ingredients there are also junk foods such as ice creams, cookies, hotdogs, burgers and drinks, which if
caught, cause the players to loose points. The players are provided with a time limit and a target score and
they can play at four levels.
6.2.2 Television
UBL used a teaser and 30 seconds thematic TVC in almost all TV channels of Bangladesh. The advertisement
is regionally made and is hence similar to that in India (with some modifications to accommodate
Bangladeshi products and dialects. The idea of the TVC was to establish Knorr as a Tasty and Healthy 7
pm snack with 100% real chicken, promote the four variants and encourage daily consumption. In addition
to these ads, UBL enjoys a spillover effect from Knorr ads in Indian television channels. Most of the urban
population of Bangladesh watches a wide array of Indian television channels, where similar Indian ads of
Knorr are broadcasted. These ads hence create brand awareness and recognition for Bangladeshi target
audience, with no cost for UBL.
6.2.3 Print
Knorr also placed ads in the major national dailies to encourage daily consumption.
6.2.4 Point of Sales Materials (POSM)
POSM has been deployed in penetrated outlets. Knorr was provided with dedicated shelf space in Modern
Trade (MT). Also in both Modern Trade and General Trade (GT), different hangers (with 4 pockets for 4
variants), buntings and dangling were used to draw consumer attention to Knorr. POS visibility is very
important to ensure brand preference over Maggi.
6.2.5 Radio
Knorr also used radio slots for promotion. A dedicated Happy Hour was featured at 7pm in two major
radio channels of the country (Radio Today and ABC Radio). This was to enable consumers to relate Knorr
to 7pm.
6.2.6 Sampling & Activation
Food items necessitate sampling and UBL used wet sampling and activation as its major mode of promotion.
And also this was the most successful. Consumers develop opinions based on perception and sampling
reinforces or changes their opinion. It is important that people get a good perception of the brand. While
launch8ing, Knorr did wet sampling in market areas of Dhaka. Three major types of sampling were carried
out.
22
Sampling activation was done in Agora and New Market. Soups were served at 7pm and consumer
feedback was taken. Also a booth was installed for consumers to buy soup. UBL targets to sample 1 million
people in 2011.
MT (Modern Trade) sampling: Sampling three flash mob in KA (Key Areas)
Sampling Van
Knorr now has 3 fixed activation booths in 3 large shopping complexes in Dhaka. These are:
Basundhara City
Shimanto Square
Jamuna Future Park Limited
Through these shopping complexes, Knorr successfully reaches around 15% of the shoppers every day.
UBL also installs Knorr outlets in various events to activate this brand through sampling.
UBL tries to uphold the international standard of Knorr Product and Service, through training the Knorr
Brand Promoters regularly.
6.3 Place (Distribution)
UBL must ensure that its products are available in the right place and time when consumer might want to
buy them, e.g. how do they look on shelf and are they in the right place in the store. Given UBLs wide and
extensive distribution network in the country and excellent marketing capabilities and channel expertise, it
took a conservative approach by launching Knorr in few distribution points. Knorr was launched in only 21
distribution points and only in urban areas. So why did a company, who believes in extensive distribution,
chose a selective distribution strategy? This reasoning behind this was to control the whole environment
initially. For food products such as Knorr, expiry and manufacturing dates are crucial. UBL did not want
products to get stuck in the distributor and retail points and Knorr soups to run out of its shelf life. Because
if such situation arise, the overall image of the company could be at stake. If, for example, people were to
get sick having Knorr soups, it will hamper the companys reputation. Knorr is distributed in major urban
areas of the country, mainly Dhaka and Chittagong and to some extent Sylhet, since sales are high in these
regions. This is because the target customers are the urban people of Bangladesh. More off take means
Knorr is promoted more in these areas.
6.4 Packaging
Packaging can play an important role in brand recognition in the shelf while consumers shop. It is the
visible outline the consumer sees and uses. Knorr has to ensure that its packs are easy to find on the shelf
23
and stands out from the competition. The pack graphics must reinforce and communicate the core
proposition. The pack should also be effective in its use and should add to the product experience.
6.5 Price
Price defines how expensive is a product, both on shelf and on consumers mind and does it offer value for
money. UBL must also identify how sensitive are consumers to changes in price. Three flavors of Knorr are
priced at BDT 35 currently. The Knorr Thai soup is priced at BDT 40. However this pricing strategy of Knorr
contradicts with the traditional marketing theory of market penetration. Traditionally market penetration is
used by companies to enter an existing market with a new product by pricing it low to grab quick market
share and infiltrate the market.
Unilever offers premium brands in the market it operates. Although some of its brand target the lower tier
segments, but it always has a premium brand in the market. So UBL did not set a lower price for Knorr to
penetrate the market. Rather the idea was to position Knorr as a superior quality product than Maggi. A
brand is a promise and UBL products promise to provide the best possible quality. And price is a reflection
of a products quality. Unilever products are aspiration and are set in such a way that people desire to have
them.
24
Initial market research also revealed that Bangladeshi people like chicken corn soup, which prompted Knorr
to launch the Sweet Corn Chicken soup. But after the launch, UBL realized that the taste glands of
Bangladeshi consumers are mostly skewed towards Thai flavored soup (which is actually Tom Yum soup),
which is offered by major competitor Maggi.
Also, some people find the taste of Knorr soups bland and somewhat tasteless. Knorr soup is prepared
according to an international formulation thus are biased towards European taste/savory. People in
Bangladesh like it spicy and have a completely different taste palate. Hence Knorr does not suit them.
Another challenge is that, soup is a seasonal product in Bangladesh, as people prefer it during winter.
Bangladesh is a warm country so consumption is not at its expected level yet Its too hot to have soup!
The lack of awareness about Soup can be a big challenge as well. The idea of real chicken still did not
register amongst the consumers of Bangladesh. It will obviously take some time to trickle in their minds.
7.2 Recommendations
From the results found from quantitative analysis, we can understand how important it will be for Knorr to
promote the category first. There is a huge untapped market. UBL can introduce flavors which would suit
the Bangladeshi consumers taste palates, e.g. Tom Yam or Thai soup. They can also introduce more variety
25
of soups such as Soupy Noodles (which gained popularity in India). Knorr can also launch new flavors which
people want or currently buy from grey market, such as Chicken Delight or Cream of Chicken flavors.
UBL can extend the savory category by introducing new products under Knorr, such as Noodles, Pasta,
Kabab Meal Maker, etc. (which are available in other countries).
Also in order to reduce rejection, they should try to actively communicate the Knorr essence of taste and
naturalness to improve penetration and frequency. Knorr can renovate the core by improving front of pack
reassurance, in-store activation and product quality upgrade (re-nature cues, clean label). They can also
promote addition of fresh ingredients to existing products (real chicken or vegetables).
26
Chapter 8: Conclusion
The time is not yet ripe to decide whether Knorr has been a success story in Bangladesh or not. Bangladesh
savory taste is changing. There are more variant cuisine available now and more options of tasting. Also
in-home consumption is changing, e.g. fried chicken. Increasingly more people will become health
conscious in the future, indicating that market is there for Knorr. So peoples taste palates will change, in
which soups and other Knorr items will play a part. UBL definitely have the expertise and resources needed
to make Knorr a leading food brand in Bangladesh. It might take some time, but if they utilize the resources
and take proper steps to grab the opportunities that are out there in the market, they will definitely come
out in the top in this category as well.
27
References
Brand History. (2004). Retrieved August 08, 2011, from Knorr Website: http://www.knorr.com/ (2009).
Sustainable Development Overview 2009. Scanplus.
Knorr Soup @7. (2010). Retrieved August 14, 2011, from Facebook:
http://www.facebook.com/KnorrSoup?sk=info (2010).
Unilever Annual Reports and Accounts 2010. St Ives Westerham Press Ltd. (2011). Retrieved August 10,
2011, from Unilever Food Solutions: http://www.unileverfoodsolutions.com/ (2011). Retrieved August 08,
2011, from Unilever Bangladesh Website: http://www.unilever.com.bd/ (2011). Retrieved August 14, 2011,
from Unilever Global Website: http://www.unilever.com/ Best Brand Award 2010. (2011, May).
Knorr
South
Africa.
(2011).
Retrieved
August
14,
2011,
from
Unilever
South
Africa:
http://www.unilever.co.za/brands/foodbrands/knorr.aspx About
28
Appendix
How frequently do you consume savory snacks (Noodles, Macaroni, Soup etc.)?
Everyday
Two or Three times a week
Once a week
Not very often
Never
Where do you normally consume savory snacks (Noodles, Macaroni, Soup etc.)?
At home
At restaurants
Roadside Carts
If other, please specify: _________
Please rate the factors that you think is important while purchasing a packet of Noodles or Soup.
(5= Most Important, 1= Least Important)
1
Great Taste
Reasonable Price
Highly Available
High Nutrition Values
Lucrative Packaging
Please state whether you agree or disagree with the statements below:
Statements
29
For what purpose do you normally consume any kind of soup? (You can tick more than one option)
As an Evening Snack
As a restaurant meal (eg: starter for Chinese)
As a healthy meal (For patients)
As a tummy-warmer (for Winter season)
Other. Please specify _______________
TV Advertising
A friend or a Relative
Social Media
On-store Displays
Tastier
Healthier
More Available in the Market
Better Priced
Demographic Profile:
Gender:
Male /
Female
30
Frequency Table
Consumption Frequency
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
.8
.8
.8
26
20.3
20.3
21.1
49
38.3
38.3
59.4
40
31.3
31.3
90.6
12
9.4
9.4
100.0
128
100.0
100.0
Total
Consumption Location
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
78
60.9
60.9
60.9
20
15.6
15.6
76.6
30
23.4
23.4
100.0
128
100.0
100.0
Total
31
Consumption Purpose
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
48
37.5
37.5
37.5
80
62.5
62.5
100.0
128
100.0
100.0
Total
Variant
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
80
62.5
62.5
62.5
48
37.5
37.5
100.0
128
100.0
100.0
Total
First Hear
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
16
12.5
12.5
12.5
16
12.5
12.5
25.0
32
25.0
25.0
50.0
64
50.0
50.0
100.0
128
100.0
100.0
Total
32
Percent
Valid Percent
Percent
32
25.0
25.0
25.0
96
75.0
75.0
100.0
128
100.0
100.0
Total
Brand Name
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
48
37.5
37.5
37.5
Maggi
80
62.5
62.5
100.0
Total
128
100.0
100.0
33
Gender
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
48
37.5
37.5
37.5
80
62.5
62.5
100.0
128
100.0
100.0
Total
Age
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
96
75.0
75.0
75.0
32
25.0
25.0
100.0
128
100.0
100.0
Total
Taste
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
Bad
16
12.5
12.5
12.5
Bland
64
50.0
50.0
62.5
Good
16
12.5
12.5
75.0
Spicy
16
12.5
12.5
87.5
Tasteless
16
12.5
12.5
100.0
128
100.0
100.0
Total
34
Pie Chart
35
36
37
38