Analyzing Bangladesh Scenario, Identify Soap

Market belongs to Which Market Structure and

Why?

Definition of MarketIt is an arrangement that

allows buyers and sellers to exchange goods, services, and information.

Markets vary in size, range, geographic scale, location, types and variety of human communities, as well as the types of goods and services traded.

Market structureMarket Structure

Imperfect Market

Monopolistic

Oligopoly

Monopoly

Perfectly Competitive Market

Determinants of Market StructuresMarket Structure

No. of Seller

s

Nature of

Product

Market Share

of Sellers

Control of the Seller over the

Price

Entry and Exit

Examples

Perfectly Competitive

Numerous

Homogeneous

Insignificant

No Control

Free Wheat, rice

Monopolistic

Large Differentiated

Small Some Control

Not Free Restaurants, movies

Oligopoly

Few Differentiated/ Homogeneous

Large May or May not

Depends on the Market

Food oil, SIM Card

Monopoly

One Unique Hundred Percent

Full Control

Restricted

WASA, Microsoft

Brief history of LUX in BangladeshLUX was first launched in UK in 1899, and in

USA 1916 by Lever BrothersLUX was manufactured in Bangladesh in 1964

by Lever Brothers Pakistan Unilever-Bangladesh holds 60.75% share and

Govt. of Peoples Republic of Bangladesh holds 39.35% of share

Market Structure of LUX In Bangladesh

Market Competitors

Few local brands like meril, keya, tibbet, lilly, cosco, lifebuoy, aromatic

• Perfect example of a oligopoly market structure• Market share is less than 50%• Enjoying decadal leadership in beauty soap industry

Lux Tibbet keya Meril Aromatic Lilly Lifebuoy Cosco0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

43%

8%10%

12%11%

4%6% 6%

Market Share in percentage

Small number of firmsInterdependenceBarriers to entryLimit pricingNon-price competition

Advertising Quality variation Branding

Oligopoly – As LUX Resembles…

Thank You