Internship Report by Nusrat Omer

Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 1

1.0 Introduction

As the final requirement of the BBA program in Independent University, Bangladesh, it is a

must for every student to undergo a three months internship program in an organization. The

interns are required to carry an extensive analysis of real world business problem in this

program. Therefore, I had been placed at Advanced Chemical Industries (ACI) Limited and get

the opportunity to see the overall aspects of that organization specifically the consumer brand

during the internship program. Mr. Aminur Rahman, Associate Professor, School of Business,

Independent University, Bangladesh was my internal supervisor and external supervisors was

Ms. Mosarrat Farhana, Product Executive, Consumer Brand, ACI Ltd. and Mr. Qamrul Hasan,

Marketing Manager, Consumer Brand, ACI Ltd.

Report Preview

The soap markets of Bangladesh are developing rapidly now a day. In our country we can see

the two different segment of soap in the market which are “Health soap” and ‘Beauty soap”.

Under health soap segment in existing situation, there are two prominent brands in Bangladeshi

soap market which are Lifebuoy and Dettol. In the case of health soap Dettol has gain the

maximum market share and then Lifebuoy. Again, under beauty soap segment Lux is the market

leader in existing situation in the Bangladeshi soap market and then Meril, Keya, Aromatic etc.

has come under consideration. Moreover, few years back ACI has launched bar soap under

beauty soap segment which was Angelic beauty care soap but this idea was not worked out well.

Not only that, ACI has also launched bath soap under health soap segment with two separate

categories which are “SAVLON Antiseptic Soap” and “SAVLON Skin Care Soap” with the

slogan of everyday protection from germs. Moreover, at previous time a good number of studies

had been undertaken by ACI to determine the consumers’ perception on SAVLON brand,

strength and weakness of the product of this brand, prevailing market opportunities and threats

etc. AC-Nielsen also conducted a focus group discussion in this regard. Through the focus group

discussion, consumers’ perceptions regarding the product of SAVLON brand against other

competitive brands and different strength, weakness, opportunities and threats in the existing

market have also been found out. So, the company already found out the consumers perception

of SAVLON brand. Now, through out this internship in-depth interview has been conducted on

gaining the consumer insights for a new kind of soap which contains both antiseptic and beauty


care quality in a single soap under the parent brand which is SAVLON. Also, it is found out that,

the positive reciprocal effect on vertical brand extension will make the prior nonuser to the user

of the parent brand SAVLON for the company ACI.

2.0 Statement of the Problem

It has been mentioned earlier that, few years back ACI has been launched soap under both of

the segment which are health soap and beauty soap. But they were unable to capture the

maximum market share than other companies in both of the segment. The reason was that, they

were incapable to compete with the dominant brand Lux under beauty soap category and with

Dettol and Lifebuoy under health soap category. Furthermore, they were incapable because of

their inconsistency in distribution and lack of product uniqueness. That is why, the company has

come up with a new idea and they want to launch a new kind of soap which will contain both

antiseptic quality and beauty care quality. Then, this vertical brand extension will make the

reciprocal effect on the parent brand. So, here the studying issue is that, with the help of in-depth

interview we want to check out first the existing perception level of consumers’ about using bar

soap and then it will come to the main issue which is the acceptance level of the consumers for

the upcoming new kind of bar soap. Thus, these insights will reflect to explore the theme that

reciprocal effect on vertical brand extension will be positive or negative towards the parent

brand. Finally, it will be further anticipate that whether this new kind of soap make the SAVLON

brand more popular, will make the non-user become user for the parent brand under bar soap

division and ultimately will increase the market share for the brand SAVLON.

3.0 Purpose of the Study

The purpose of this study primarily is to explore the knowledge on bar soap usage pattern and

then to gain the consumer insights for the acceptance of a new kind of soap which will contain

both antiseptic quality and beauty care quality. Also, the information will lead to draw the


conclusion for the reciprocal effect on vertical brand extension for the parent brand Savlon in the

context of Bangladesh.

4.0 Limitations of the Study

Strength Limitations:

Adequate efforts have been taken to accomplish the research according to the objectives. But

as the research team is consisted of only one member therefore it was not possible to cover more

additional areas, which would obviously give better result.

Cost limitations:

The in-depth interview should be conducted with the help of experience moderator but it was

very cost sensitive. So, the interview was taken by self which might crept few errors on the

research.

Time Limitation:

The type of the study required a detail interview of both man and women residing at homes.

Thereby a tremendous difficulty was faced in getting access to different houses, especially in the

absence of some male and female during daytime whom are service holder. Again these people

usually fallback from different offices or businesses after dusk and enjoy their times at home, so

taking interview during that time became an irritation for them. On the other hand, maximum of

the female whom were housewives residing at home found busy after 11 am with their daily

routine jobs like cooking. Therefore a very limited period of day was found suitable for

conducting the survey. Many times the respondents were found after answering few questions

left the interview for looking after their housework, which resulted in discontinuity in interview

and the wastage of time and effort. Also, the interview was conducted only on the people of

Dhaka city for the time limits of internship periods.

Literature review limitation:

As this study has been done first time in Bangladesh, the literature reviews were not very

healthy enough. Moreover, there was very little information found of some of the topic for the

literature review.


5.0 Literature Review

Brand

A brand is a product, service, or concept that is publicly distinguished from other products,

services, or concepts so that it can be easily communicated and frequently marketed. Moreover, a

brand name is the name of the distinctive product, service, or concept. Branding is the process of

creating and disseminating the brand name. Branding can be applied to the entire corporate

identity as well as to individual product and service names.

Brands are usually protected from use by others by securing a trademark or service mark from

an authorized agency, usually a government agency. Before applying for a trademark or service

mark, people need to establish that someone else has not already obtained one for the name the

company has proposed. Once the company found that no one else is using it, the company can

begin to use this brand name as a trademark simply by stating that, it is a trademark using the

"TM" symbol where it first appears in a publication or Web site. After the company receives the

trademark then it can use the registered symbol after the trademark.

Brands are often expressed in the form of logos, graphic representations of the brand. In

computers, a recent example of widespread brand application was the "Intel Inside" label

provided to manufacturers that use Intel's microchips.

A company's brands and the public's awareness of them are often used as a factor in

evaluating a company. Corporations sometimes appoint market research firms to study public

recognition of brand names as well as attitudes toward the brands.

However, today brand is what they do for people that matters much more, how they reflect

and engage them, how they define their aspiration and enable them to do more. Powerful brands

can drive success in competitive and financial markets, and indeed become the organization's

most valuable assets.


Brand Extension

Brand extension or brand stretching is a marketing strategy in which a firm marketing a

product with a well-developed image uses the same brand name in a different or same product

category. Moreover, brand extensions are further described as, the stretch of the established

franchise to a different or same product class (Aaker and Keller, 1990) have become an

increasingly popular way of gaining growth ( Springen and Miller, 1990). Organizations use this

strategy to increase and leverage brand equity.

A brand's "extendibility" depends on how strong consumer's associations are to the brand's

values and goals. In 1990s, 81% of new products used brand extension to introduce new brands

and to create sales. Moreover, launching a new product is not only time consuming but also

needs a big budget to create awareness and to promote a product's benefits. Brand extension is

one of the new product development strategies which can reduce financial risk by using the

parent brand name to enhance consumers' perception due to the core brand equity (Chen and Liu,

2004).

While there can be significant benefits in brand extension strategies, there can also be

significant risks, resulting in a weak or severely damaged brand image. Poor choices for brand

extension may dilute and deteriorate the core brand and damage the brand equity. Most of the

literature focuses on the consumer evaluation and positive impact on parent brand. Some studies

show that negative impact may dilute brand image and equity. In spite of the positive impact of

brand extension, negative association and wrong communication strategy do harm to the parent

brand even brand family.

Given the large literature on brand extension success factors, and as an aid to review, the

various components are grouped as:

• Parent brand characteristics;

• Brand extension characteristics; and

• Consumer’s characteristics.


Brand extension strategy comes in two primary forms which are horizontal and vertical. In

horizontal brand extension circumstances, an existing brand name is applied to a new product

introduction in either a related product class or in a product category completely new to the firm

(Sheinin and Schmitt, 1994). In addition, in a vertical brand extension, on the other hand,

involves introducing a brand extension in the same product category as the core brand, but at a

different price point and quality level which is originally described by Chen and Liu (2004) with

reference to Keller and Aaker (1992) and Sullivan (1990).

Furthermore, literature on extensions dominantly addresses the question of how the parent or

core brand helps the new product during its launching stage. Also, literature touches on the

possible reciprocal effects of the new product launching on the equity of the core brand.

Reciprocal Effect

Reciprocal effect could be positive or negative. Positive reciprocal effects exist only when an

average-quality parent brand (in comparison to competitors) introduces a successful extension

(Keller and Aaker, 1992). On the other hand, negative reciprocal effects can occur when the

extension similarity to the parent brand is extremely low. However, this can also happen when

the extension is highly similar to the parent brand, but not noticeable. Reciprocal effect

manipulates the brand extension positively or negatively which reveal on the parent brand. When

the brand extensions are positively manipulated that time the non-users of parent brand becomes

the users of that brand and sometimes they turn into loyal customer. Again, if it is negatively

manipulated then the parent brand might loose their loyal customers.

Bar Soap

“Soap is a surfactant used in conjunction with water for washing and cleaning that is available

in solid bars and in the form of a viscous liquid”(whatis.techtarget.com/definition, 2008) .

Chemically, soap is a salt of a fatty acid. Traditionally, soap is made as the result of a reaction

between fat and lye (sodium hydroxide), potash (potassium hydroxide), and soda ash (sodium

carbonate), which are all alkalis historically leached from hardwood ashes. The chemical

reaction that yields soap is known as saponifications. The fats and the bases are hydrolyzed by


water; the free glycerol heads bond with the free hydroxyl groups to form glycerin and the free

sodium molecules bond with the fatty acid tails to form soap.

Again, we are saying that we are concerning only on bar soap. Bar soap means the soap which

is in solid form. Moreover, bar soaps are still widely used. With regard to cost and aesthetics,

wear rate (also called use up rate) is an important property. Consumer perceived economy of bar

soaps is determined by the amount of mush or paste that occurs as the bar surface hydrates. The

mush is considered undesirable by consumers since it is easily removed and washed off of the

bar surface, leaving the user with less usable soap. Bar use up rate is another indication of the

economy of the bar soap. Use up is determined by the physical abrasion (mechanical action) on

the bar and is related to bar hardness and shape.

In addition to the economy of a bar soap, there is also a desire to maintain good foaming and

cleaning abilities. The quality and quantity of lather produced by washing with a bar is

associated with the cleansing ability of the bar. Other qualities desired are good rinsability,

mildness to the skin, shape, stability, ingredients and delivery of fragrance to the user's skin. The

combination of an efficient bar soap with effective cleansing and bar aesthetics has been often

attempted.

Health soap

Health soaps markets are covering huge ground for business. Health soaps are divided into

health care and health freshness category. Under health care the marketer can produce derma

protection soap and natural care soap. Again, under health freshness the marketer can produce

anti-bacterial soap and active-balance soap. In health soap market, there is nothing more which

can differentiate uniquely or where more value can added to soap.

Beauty Care Soap

Beauty care soaps are communicating only to enhance beauty. It can be luxury soap,

traditional soap, moisturizing soap etc. Though it is a very short arena for business but in reality

most of the companies are doing business utilizing this field. Here, many variables can be added

to a soap and can differentiate its position in a unique area.


6.0 Research Questions

This study proposes to examine the following research questions:

R.Q.1 What is the general overview of using a bar soap among the consumers mind?

R.Q.2 How the consumers will accept or react towards the upcoming new kind of soap which

will contain both antiseptic quality and beauty care quality?

R.Q.3 Does this new kind of soap uphold to positive reciprocal effects on vertical brand

extension of the parent brand “SAVLON”?

7.0 Research Methodology

Research Design

The purpose of this study is to gain consumer insights about the fundamental idea of using

bath soap and then monitoring the acceptance of the proposal of such a new kind of SAVLON

bath soap which is containing both antiseptic quality and beauty care quality in the context of

Bangladesh. Moreover, using the above information the study will also pursues the reciprocal

effect of vertical brand extension on the parent brand SAVLON. As this is a new concept in

Bangladesh so that an exploratory research will be more appropriate for that.

Research Approach

The respondents will be the consumer of bath soap (bar shape) whom are interested to

cooperate. To collect the data the laddering technique under the in-depth interview method will

be preferable.

Sampling Method

The in-depth interview for this study will be limited to Dhaka city only due to certain

limitations. Also, it has been mentioned earlier that, the interview will be only on the consumer

of bath soap. Moreover, the researcher will have to ask the respondents whether they fall into the


category or not. If they fall then they will be interviewed for 30 minutes. The sample size will be

30 for this study.

Data Collection

The primary data will be collected from the buyer and user of bath soap (bar shape).

Moreover, these data will be gathered directly from the respondents through an in-depth

interview. In addition, the secondary data will be colleted from ACI stuffs, different articles and

from internet.

Data Analysis Method

The data analysis of this research will be mostly represented on qualitative manner. It has

been mentioned earlier that, the data will be gathered by in-depth interview so most of the

analysis will be qualitative. However, there will be few quantitative solutions. For efficient

analysis and presentation, application packages like Office XP (Microsoft Word, Microsoft

Excel) will be used.


8.0 Results

The results are derived from the questionnaire of in-depth interview. The questionnaire has

been already given on the Appendix (A) and the outcomes are given in the following

simultaneously:

• Soap Usage Pattern

Regular user of soap

95.00%

90.00%

6.67%

Yes Male Yes Female No Both male & Female

Figure 1: Regular user of soap

From the above pie chart we can see that, except 6.67%, 90.00% male and 95.00% female

respondents replied positively that they use soap regularly for bathing. However, among male

and female who is not use soap on regular basis because they feel that soap trim down the

smoothness of skin.


• Soap Usage Purpose

Purpose of using soap

37%

27%

23%

3%7% 3%

Clean Germ Protection Beauty Care Health Conciousness Feel Fresh Feel Skin Smooth

Figure 2: Purpose of using soap

From the above pie chart we can see that, 37% people are using soap first and foremost

for cleaning purpose. Then, 27% people recommended about germ protection and 23%

people suggested about beauty care. After that, few more variables come to their mind such

as, they use soap for feeling fresh, for health consciousness and for feeling skin smooth. So,

cleaning is the basic purpose which is apparent but there are two more key purposes for using

soap which are protection from germs and beautification.


• Variety of Soap Usage

Variety of Soap Use

38%

33%

3%

3%

10%

10%3%

Antiseptic Beauty Care Herbal Medicated Skin Care Flower Extract Fruit Extract

Figure3: Variety of soap use

From the above doughnut chart we can see that, among male and female respondents 38%

people advocated for antiseptic soap and 33% people advised for beauty care soap. After that,

10% people directed about both skin care soap and flower extract soap. Also, there is little

number of respondents which is only 3% people recommended about medicated soap, herbal

soap and fruit extract soap. So, it is clearly viewed that, antiseptic soap and beauty care soap

are more preferable among all the respondents.


• Physical and Functional Attributes of Soap

Physical attributes of soap

Physical Attributes of Soap

40.00%

16.67%

10.00%6.67%

23.33%

3.33%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

Ingredients Foaming Fragrance Color Shape Duration

Different Attributes

Res

pond

ents

Per

cent

age

Physical Attributes

Figure4: Physical attributes of soap

On the account of physical attributes of soap, from the above column diagram we can see

that, among male and female respondents most of them prefer for ingredients at the first

position. Second, they prefer foaming of the soap. Third, they prefer fragrance of the soap.

Fourth, they prefer color of the soap. Fifth, they prefer shape of the soap. Finally, they prefer

duration of the soap i.e. the length of the time they can use a single soap.


Functional attributes of soap

Functional Attributes of Soap

26.67%

20.00%16.67%

10.00%6.67%

3.33%

13.33%

23.33%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

Cleanin

g

Moistur

izing

Antiba

cteria

l

Beauty

Car

e

Fres

h Fee

ling

Nouris

hmen

t

24-ho

ur Bod

y Odo

r Pro

tectio

n

Ant-ag

eing

Different Attributes

Res

pond

ents

Per

cent

age

Functional Attributes

Figure5: Functional attributes of soap

On the account of functional attributes of soap, from the above column diagram we can see

that, among male and female respondents most of them prefer cleaning capability of the soap at

the first position. Second, they prefer moisturizing capability of the soap. Third, they prefer

antibacterial capability of the soap. Fourth, they prefer beauty care capability of the soap. Fifth,

they prefer fresh feeling capability of the soap. Sixth, they prefer nourishment capability of the

soap. Seventh, they prefer 24-hour body odor protection capability of the soap. Last but not the

least, they prefer anti – ageing capability of the soap.


• Influencing Factors in New Soap Purchase Decision

Influencing Factors in New Soap Purchase Decision

Brand, 26.67%

Antiseptic Quality, 23.33%

Beauty Care Quality, 23.33%

Ingredients, 10.00%

Price, 10.00%Packaging, 6.67%Availability, 6.67%

Pack Size , 3.33%Advertisements, 3.33%

Shopkeeper's Opinion, 3.33%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1

Different Factors

Res

pond

ents

Per

cent

age

Figure 6: Influencing factors in new soap purchase decision

From the above column diagram we can see that, while purchasing new soap both male

and female respondents firstly look for brand and their percentage is 26.67%. Then, secondly

they prefer both antiseptic quality and beauty care quality and for these the percentage is

23.33%. After that, 10.00% consumers seek for both price and ingredients. Again, 6.67%

people search for both availability and packaging. Finally, only 3.33% people hunt for few

other factors which are pack size, advertisements, and shopkeeper’s opinion.

• Acceptance of Antiseptic Soap

Most of the male and female consumers have been agreed to use antiseptic soap for

family. The reason they proposed, it kills the germs and ensures personal hygiene. However,

there is little number of people who don’t think the need for antiseptic soap for their family.


• Loyal Consumers of Antiseptic Soap and Recommended Brand

From the interview it is observed that, more than average numbers of people are loyal

consumers or using a fixed brand of antiseptic soap at present time. Moreover, there are few

male and female respondents whom are not loyal for using any brand of antiseptic soap

because some are not loyal towards any brand and some are eager more about beautification

and other things.

Preferable Brand of Antiseptic Soaps

30.00%

10.00%

55.00%

30.00%

0.00%

20.00%

40.00%

15.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Dettol Savlon Lifebuoy Bactoral

Different Antiseptic Soaps

Res

pond

ents

per

cent

age

MaleFemale

Figure 7: Preferable brand of antiseptic soaps

Among both male and female consumers most of the people use Dettol antiseptic soap.

Then, Lifebuoy stands on second position and after that Savlon is preferable to the

consumers. Moreover, a small number of male consumers vote for Bactoral soap.


• Acceptance of Beauty Care Soap

Majority of the female respondents agreed on the necessity of beauty care soap than male.

Moreover, some housewives said that they buy beauty care soap for their teenage daughter. The

reason behind of the necessity of beauty care soap is that, beauty care soap specially articulated

for enhancing beauty. It refers that, this kind of soap delivers the benefit like making skin

brighter, make the skin smooth and moisturize, furnish extra nourishment etc.

• Loyal Consumers of Beauty Care Soap and Recommended Brand

From the interview it is observed that, average numbers of female respondents are loyal

consumers or using a fixed brand of beauty care soap at present time. Moreover, except few,

most of the male respondents are not loyal towards any brand of beauty care soap.

Preferable Brand of Beauty Care Soap

60.00%

70.00%

0.00%

15.00%

0.00%5.00%

0.00%

10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

Male Female

Gender basis Distribution

Res

pond

ents

per

cent

age

LuxMerilAromaticKeya

Figure 8: Preferable brand of beauty care soaps


Most of the female respondents are loyal towards “Lux” brand for beauty care soap. Then,

rest of the female respondents choices are scattered among other beauty care soaps such as

Meril, Keya and Aromatic. Though male respondents are not loyal towards any beauty care

soap, somehow they loyal for only one brand which is Lux.

• Preference for Antiseptic Quality and Beauty Care Quality in One Soap

Preferance for Antiseptic and Beauty Care Quality in One Soap

MaleYes, 90.00%

Both male & Female No, 6.67%

Female Yes, 95.00%

Figure 9: Preference for antiseptic and beauty care quality in one soap

Almost equal numbers of female and male respondents are expecting two separate

categories which are antiseptic quality and beauty care quality in a single soap. Moreover,

they are very enthusiastic to buy it. Because, they think this soap will be deliver two benefits

at a time. Also, using this soap it will be more cost effective because there is no need to buy

two separate quality soap. However, only insignificant numbers of male and female

respondents are not considering this fact. So, there is a possibility of launching this new kind

of soap which will hold both antiseptic and beauty care quality in a single soap.


• Preferable Price for Having Soap Containing Antiseptic and Beauty Care Quality

Both male and female respondents are preferred a price range of 25tk – 30tk for a 100 gm

of soap which has both antiseptic quality and beauty care quality. Basically, consumers are

preferred this price range because the existing soap they purchase (whether it is antiseptic

soap or beauty care soap) are priced within the range of 12tk – 22tk. As this soap will deliver

two quality at a time so that they can expense some extra amount for having it. So, the new

soap’s price should be within the range of 25tk- 30tk for satisfying the need of the middle

class to upper class people.

9.0 Discussion

Analyzing the above result we can discuss like that, basically people are using soap

primarily for cleaning purpose then for germ protection and beauty care. That is why; under

antiseptic soap Dettol soaps has noticeable demand in the market and it is widely consumed

by the loyal consumers of antiseptic soaps. Also, under beauty care soap Lux soaps has

visible command in the market and it is widely consumed by the loyal consumers of beauty

care soaps. Moreover, at the time of purchasing new soap most of the people initially look for

brand then antiseptic quality, beauty care quality and so on. So, it can be recommended like

that, brand is the most influential factors when new soaps are usually purchased and the

marketers have to create a clear and strong brand image on the consumers mind before

launching or promoting any product. Furthermore, in the case of physical attributes most of

the people given first priority for ingredients while using any soap. Then, it has been

prioritized as foaming, fragrance etc. Again, in the case of functional attributes most of the

people given first priority on cleaning capability while using any soap. Then, it has been

prioritized as moisturizing capability, antibacterial capability; beauty care capability etc. In

short, now it is visible that, while choosing any physical attributes of soap people are concern

for ingredients which is also reflecting when they choose functional attributes i.e. whether

the soap has antibacterial capability, moisturizing and beauty care capability. After that, we

can synchronize like that, there is a huge prospect of such a new kind of soap which

containing both antiseptic quality and beauty care quality because it will deliver two benefit


at one time. Not only the people are willing to buy that product but also they are willing to

buy it at higher price i.e. within the range of 25tk – 30tk for 100 gm pack size soap.

However, as we have mentioned earlier that brand is the most influential factor while

purchasing any new soap, so that brand should be highly focused at the initial stage.

Now from the above discussions, we can derive the answers for the research questions which are

given in the following:

1. Generally, at bathing time consumers use soap regularly for the three major purposes

which are cleaning, germ protection and beauty care. That is why; most of the people

usually purchase either antiseptic soap or beauty care soap. Moreover, at the time of

purchase new soap first and foremost people look for brand. If the soap is from well

known brand then it is more preferable to buy. So, brand is the most influential factor

in new soap purchase decision. Furthermore, when people using any soap under

physical attributes they look for ingredients, fragrance, color etc. and under functional

attributes they look for antiseptic quality, beauty care quality, moisturizing quality

etc.

2. Consumers have given perceptible positive response for the upcoming new kind of

soap which contains both antiseptic quality and beauty care quality. People believe

this soap will encounter two needs at the same time. So, this will be a positive vertical

brand extension of the parent brand “SAVLON” for the company ACI Ltd.

3. As this will be a positive vertical brand extension so that the reciprocal effect will

also be positive towards the parent brand SAVLON. That means, this new kind of

Savlon bath soap will make the non-user become user for the parent brand SAVLON

under bar soap division. In that way, it will be a successful extension which will also

increase the market share for the parent brand SAVLON.

10.0 Significance of the Study

Bangladesh has already developed a very good bar soap market. Under bar soaps prior ACI

has launched soap both for the health soap segment and beauty soap segment but they were

unable to gain most of the market share than other companies. This study will help us to know

the consumer preference of bar soap which will ultimately find out the acceptance to make the


new kind of soap which will contain both antiseptic quality and beauty care quality for the

Bangladeshi soap market. Moreover, it will also help the company to generate profit with the

increase of market share.

11.0 Recommendation

Above all, from this exploratory study we can recommended like that, within the conscious or

unconscious mind consumers are basically need two kind of soaps which are antiseptic soap for

the protection from germs and beauty care soap for beautification. So, the upcoming new kind of

bar soap which contains both antiseptic and beauty care quality will achieve terrific success in

the Bangladeshi soap market. Moreover, the company ACI will get a successful vertical brand

extension for their parent brand Savlon with the positive reciprocal effect. As we have mentioned

earlier, positive reciprocal effect will eventually build the non-user become user of the parent

brand Savlon. Also, it will increase the market share for Savlon brand. As from the interview we

found that, brand is the most influential factors in new soap purchase decision so this will be an

excellent opportunity for the company. Because Savlon brand is already very popular in front of

the consumers and the only things the company have to do they have to focus more on product

differentiation or product uniqueness. At the end, one more thing should be mentioned that, this

is an exploratory study and it has only revealed the consumer insights for the upcoming new kind

of soap. Though, the outcomes are positive according to the anticipation but it has been done

mostly on qualitative manner. At the end, there is a requirement for further survey in all over

Bangladesh and immense quantitative analysis before launching this new kind of Savlon bath

soap.


12.0 Research Timeline

2008 February Information search, problem statement and purpose of the study

writing.

2008 March Literature review writing and taking in-depth interview

2008 March Research question writing and taking in-depth interview

2008 April Research methodology, analysis and rest of the report writing

2008 May Submission of internship report


References

Aaker, D.A. and Keller, K.L. (1990), “Consumer evaluations of brand extensions”, Journal of Marketing, Vol.54 No. 1/90, pp. 27-41.

Chen and Liu (2004), “Positive brand extension trial and choice of parent brand” Journal of

Product and Brand management, Vol. 13, pp.25-36. Definition (2008), Retrieved from “whatis.techtarget.com/definition/0,,sid9_gci211703,00.html” Sheinin, D.A. and Schmitt, B.H. (1994), “Extending brands with new product concepts: the role

of category attribute congruity, brand effect, and brand breadth”, Journal of Business Research, Vol. 31 No. 1, pp. 1-10.

Springen, K. and Miller, A. (1990), “Sequels for the shelf”, Newsweek, 9 July, pp. 3-42.


Appendix A

Questionnaire for In-Depth Interview

(This interview is only for the educational purpose and all the information about the respondents will be kept confidential)

• Do you use soap regularly for bathing? Ans.:

• What are the purposes behind for using soap? Ans.:

• What kind of soap do you usually use? Ans.:

• When you are using a soap which physical and functional attributes you prefer most? Ans.:

• What are the factors that influencing you at the time of purchasing new soap? Ans.:

• Do you think antiseptic soap is necessary for family? Why? Ans.:

• Do you use any fixed brand of antiseptic soap? Which brand? Ans.:

• Do you think beauty care soap is necessary for family? Why? Ans.:

• Do you use any fixed brand of beauty care soap? Which brand? Ans.:

• If you get a soap which contains antiseptic and beauty care quality, will you buy it? Why?

Ans.:

• At what price will you prefer to buy this soap which contains both antiseptic and beauty care quality? Why?

Ans.:


Name:

Gender: Male Female Age: ……………………….

Profession: Service Business Housewife Student

Others (Please mention)…………………

Monthly Income: Below 15,000 15,001 to 50,000 Above 50,000

Total family members: ……………..

***These questions are only to give an idea about the type of information expected to be gathered from the in-depth interview. The patterns of the questions may be changed based on circumstances and some answers form the interviewee. Some additional questions may be added from the conversation.

THANK YOU VERY MUCH!!

I really appreciate your time and effort for this interview.


Appendix B

Profile of Advanced Chemical Industries (ACI)

Company Preview:

ACI Limited is one of the leading companies in Bangladesh. It was established as a subsidiary

of Imperial Chemical Industries (ICI) plc, U.K. in 1968. At that time it was one of the oldest

industrial units in our country. After the liberation war, the enterprise was declared ‘abandoned’.

Then it had been incorporated in Bangladesh on the 24th of January 1973 as ICI Bangladesh

Manufacturers Limited as a subsidiary of ICI. On 24 June 1973, the factory restarted its

operations under the name ICI Bangladesh Manufactures Limited. On the 5th of May 1992, ICI

Plc divested 70% of its share to local (Bangladeshi) management and hence ACI Limited came

into existence.

At present ACI is a leading corporate body in Bangladesh. It is a Public Limited Company

with a total number of 15,550 shareholders, among which there are six foreign as well as

fourteen local institutional shareholders. The company is diversified in to six major businesses.

Besides, the company has a large list of international associates and partners with trade and

business agreement.

ACI is the first organization in Bangladesh to earn both the ISO 9001 certificate for Quality

Management System in 1995 and the ISO 14001 certification on Environmental Management in

2000. It is a transparent and customer focused company. It always strive for innovation,

continuous improvement and never compromise with the quality.

Today ACI Limited is one of the fastest growing companies in Bangladesh. The Company

consists of the followings divisions:

Pharmaceuticals Division


Consumer Brands Division

Agro Division

o Crop Care and Public Health

o Animal Health

Seed & Biotech Division

Diagnostics and Medical Devices Division

Present Market Standing of ACI Limited

ACI has highly motivated productivity conscious, devoted and innovative work forces. Most

of its products are doing well. ACI’s market standing at present is:

• No 1 in seeds business.

• 3rd in Crop Care & Public Health.

• 5th in Animal Health business.

• 9th in Pharmaceuticals.

• Brand leader in household insecticides & antiseptics.

Subsidiary Companies

ACI Trading Limited: This is a 60% owned subsidiary. ICI, Zeneca, Exxon, Stahl are leaders

in their respective fields and ACI have excellent market share of their products in Bangladesh

The major responsibilities of ACI Trading are:

• Representing various international companies

• Procuring raw materials

ACI Formulations Limited: The factory at Gazipur of ACI Formulations Limited, a 100%

owned subsidiary of ACI Limited. It enjoys tax holiday status for its manufacturing

activities. It also undertakes:

• Seed Storage


• Aerosol filling

• Coconut hair oil canning for which an overhead charge is recovered from the

respective businesses

• ACI Mosquito Coil Production

Physical Facilities

Pharmaceuticals and some Consumer Brands production facilities at Narayangonj.

Other Consumer Brands production facilities at Rajabari

Leased experimental fields for Agro Seeds progeny trials.

Contract manufacturing used for production of soaps.

Distribution

o Total 151 distributors across the country.

o Emphasis on rural coverage.

o 19 serving depots throughout the country.

o Own fleet of 65 vehicles plying round the clock.

Above all, I have done my internship under consumer brand division and it is the time now to

discuss about it briefly:

Consumer Brands Division:

This division, "An Emerging Tiger" of ACI Limited was born on 01 January 1993. Its stable

boasts of leading brands like, Aerosol and Savlon leverage the other imported brands to achieve

second and third positions in the market. Manufacturing facility at Narayanganj and strong

distribution network throughout the country meets the growing needs of consumer demand. This

business accounts for 38% of ACI's turnover, which has increased by 52% to Tk. 542 million

over last year. Angelic range of personal care products and Colgate-Palmolive range of oral care

products contributed to this increase.

Mission

To become one of the top most consumer product marketing companies in the country.


To associate with any one of the major international Companies having excellent

reputation and market acceptability, around the globe.

Product List

ACI Angelic Air Freshener.

Hygiene Range:

o Savlon Liquid and Cream Antiseptics

o Savlon Hospital Concentrates

o Savlon Liquid Hand wash

o Savlon Bar Soaps

Household Insecticides:

o Aerosol Insect Spray

o Mosquito Coil

Toiletries:

o Vanish Toilet cleaner

o Angelic Beauty Soap

o ACI Coconut Hair Oil

o Savlon Femme Sanitary Napkin.

Foods:

o ACI Pure Spice

o ACI Pure Flour etc.

Imported Products Marketed

Oral Care products: Colgate Palmolive oral care range


Hair Care products: a)Vatika Hair Oil

b) Dabur Vatika Shampoo

c) Dabur Amla Hair Oil

Food Products: a)Dabur Honey

b)Haldirams Food range.

Health Aid Products: Canderel Low Calorie Sweetener

Documents

Internship Report by Nusrat Omer