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SUPERIOR CUSTOMER VALUE THROUGH

MARKETING MIX

Prepared By

A.M. Azhar

PCMIV/2012/COL-0200

Slim Home Colombo

2012/December/01

Preliminary Certificate in Marketing

SRI LANKA INSTITUTE OF MARKETING

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Table of Contents

1. Executive summary - 1

2. Introduction - 2

3. Methodology - 3

4. Task 1 - 4

5. Task 2 - 6

6. Task 3 - 10

7. Task 4 - 13

8. Conclusion - 15

9. Recommendations - 16

10. References - 17

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Executive Summary

The assignment was done to review the marketing operations and suggest suitable

recommendations to soapy production in SRI LANKA. LUX, LIFEBUOY and

VELVET are mostly fulfilled the soapy demand in SRI LANKA. Though, some

products are purchased because their customers do so out of habit, out of trust built

over a long period of time. The government has no control over above facts. This

facts are proofing the requirement of the own soap production in country. The

current research and experiments indicted the potential of soap production. Products

were branded as ‘KHOMBA’. This assignment only covers the soapy products. The

KHOMBA is available at the market under the SWADESHI PLC as a value added

brand. The several branding strategies and brand tools are used to market the

KHOMBA in the market. Branding the soap is not enough to catch the market.

Therefore, the product should communicate with customers in appropriate method.

The several methods such as advertising, direct marketing, promotional campaigns

are used to communicate. KHOMBA should deliver the product at the correct time

at correct point. It requires the well established distribution channel all over the SRI

LANKA include eastern and Northern Province. Further, any company cannot run

without profit. Therefore, KHOMBA should concern the cash budget.

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Introduction

Assignment

There are many products in the market today, many options, and many areas for a

consumer to decide on before making a purchase. Some products are purchased

because their customers do so out of habit, out of trust built over a long period of

time, out of recommendations by other users/customers/consumers and so on.

This study will look deeper into a particular product chosen and elaborate on

various views,

Suggestions and recommendations for the product

You work for a company dealing in FMCG products, considering buying over a

leading LOCAL brand of facial soap, assuming it is up for sale.

Your suggestions for the tasks given should be based on clear arguments and

decisions using relevant Marketing tools studied. They have to be presented to the

Directors of the Company, giving suggestions and clear recommendations on why

they should take on the product/brand.

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Methodology

To get the depth knowledge in the FMCG sector the desk research is carried out.

For that lot of annual reports and web sites are referred. The financial records and

statements are collected from New Colombo Traders in Eravur (Dealer of Swadeshi

Company’s Product). In order to collect the information Mr. M.C.Thasleem (dealer)

was interviewed and also 100 numbers of people was interviewed from different

areas of Sri Lanka.

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Task 1

Marketing mix is the set of controllable, tactical marketing tools that the firm

blends to produce the response it wants in the target market. The marketing mix

consists of everything the firm can do to influence the demand for its pro

(Philip kotler-12th

edition)

Marketing Mix for KHOMBA

Marketing mix element description unique

feature/effectiveness

PRODUCT

Brand Name- KHOMBA

Packaging – 70 grams x 144 units per case

Quality – ISO 9001 : 2008

Certified Company

Sizes –

70 grams

Services - Two services will

be carried out free of charge

In Line With The

Needs Of Its Target

Customers

The only

Product Group: Beauty Soap

Product Placement: a Clear

Herbal Transparent Soap

Active Herbal Ingredients:

Margosa oil (Azadirachta

indica )

Weight Per unit: 70 grams

Packing: 70 gramsx144

units per case Specifications:

L : 340 mm x W : 250 mm x

H : 277 mm Volume Per

Case: 0.02355M3

Case per FCL: 20' FCL :

1250 cases 40 FCL : 2500

cases

Weight: 70g

Gross wt : 12.50

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PRICE

List price 38/= Rs

Payment term –full cash

Competitive

Advantage

High price- high Value

PLACE

Channels - Consisting of

over 1500 sales, spare parts

and service dealerships

Key account – 13 sales

offices 17 regional office.

Mix Should Be Well

Blended

High availability

In the right quantities

In the right condition

With the right degree of

advice and after – sales

service

PROMOTIONS

Sales promotion –

Public relation -

helping schools & hospital

fighting the dengue menace

donate to build healing

home for war heroes

Mix Should Be Well

Blended

Promotion is done in a

care full manner with a

strategic intent to

maintain customer

relationships.

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Task 2

Introduction

KHOMBA is the value added native soap. Therefore, it will market at somewhat

high price. KHOMBA will capture the 18.5 percentage of the market share in soap

within the next quarter year in SRI LANKA. Key audience is women, men and

children. KHOMBA has to communicate with that key audience very effective and

efficient manner. Further, it is slightly new product to extinct market. Therefore, the

customers have uncertainty and risk in their mind due to the lack of information.

Marketing communication is very much important to inform, persuade, remind and

alter the customer mind.

6.2) SWOT Analysis

a) SWOT listing

Strengths:

Acknowledged market leader:

Strengths

Adequate financial resources

Product innovation skills

Acknowledged market leader

Advertising effectiveness

Ahead on experience curve

ISO certified product

Weaknesses

Insufficient experience

Can not satisfy the demand at

initial stage

Higher price for (Khomba

Clear Transparent Soap)

No halal certified

Opportunities

Growing FMCG market

environment in SRI LANKA

Few competitors

Unsatisfied demand

Serve additional customers

Enter new market segment

Diversify products

)

Threats

Competition from existing

international brands in the

market – LUX,

LIFEBUOY, VELVET and

etc.

Growing bargain power of

customers & suppliers

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Strengths

KHOMBA has a high market share and is the leader of natural beauty and gives natural

protection soap industry which is its biggest strength.

Advertising Effectiveness:

The advertising campaigns launched by KHOMBA have been very effective and have

positioned it well in the minds of its consumers.

Ahead on experience curve:

KHOMBA was the first brand of good-quality Natural Beauty soap that was launched in

SRI LANKA.

Weaknesses:

Price & Sizes:

The weakness of KHOMBA is small sizes relative to its competing products. A 70grams

KHOMBA original herbal care soap bar is available for Rs.38 whereas the 100 grams size

bar of VELVET is available for Rs.45 and 100 grams size bar of LOFEBOUY is

available for Rs.43.

Halal:

Another weakness of KHOMBA is no halal certified to its competing products whereas

the VELVET is certified as halal.

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Opportunities:

Serve additional customers:

KHOMBA has various opportunities for growth in the market, which includes the

opportunity of serving additional customers through market penetration. KHOMBA can

increase its market penetration by promoting its use in hospitals and such other places

where beauty soaps can be used.

Enter new market segment:

KHOMBA also has the opportunity of entering a new market segment by increasing its

product line horizontally. It can modify its nature’s care & nature’s beauty soap into clear

soap which promises germ protection and can enter in the anti-bacterial soap market.

Diversity into Related products:

KHOMBA can also introduce a new product line of liquid cleaners and other related

products to increase its growth.

Threats:

Increasing competition:

The threats posed to KHOMBA from the external environment include increasing

competition. KHOMBA is facing increasing competition from other anti-bacterial soap

brands like LIFEBUOY, treat and DETTOL, beauty soap like LUX, VELVET and etc.

Lifebuoy has launched an aggressive promotional campaign against KHOMBA by the

name of ‘Lifebuoy Germ busters’ which is based on a similar format as ‘KHOMBA

CLEAR’ launched by KHOMBA.

Anti-bacterial soaps

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Beauty soaps

Growing bargain power of suppliers & customers with the increase in the supply of anti-

bacterial soaps and the beauty soaps in the market, another threat that is posed to

KHOMBA is the growing buying power of its suppliers and customers.

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Task 3

Product

As anything that can to be offered to a market for attention, acquisition, use or

consumption that might satisfy a want or need.

(Philip Kotler-12th

edition)

Internal Environment

Staff Relationships: - SWADESHI PLC’s staff relationships control of

manage, management should be to create. They product each division is

divided into section based on the major product line.

Corporate Culture: - SWADESHI PLC’s culture is a lengthy process, since

people change slowly.

Micro environment

Suppliers: - suppliers supply to link product to customer. They ask product

problems and no satisfactions from customer and say that commend to

SWADESHI PLC’s producer/manufacture. Suppliers give to satisfy

customers.

Intermediaries:- SWADESHI PLC’s Intermediaries to ensure that their

product reach for final consumer. They supply directly and indirectly.

Competition:- SWADESHI PLC’s product( Khomba Clear, oil, soap)

completive with Lifebuoy, Dettol, Lus, Velvet and etc

Publics: - SWADESHI PLC also includes various publics. Financial publics

give funds. Government publics see to check product rules and regulation.

General public attitude towards it is products and marketing activities.

Macro Environment

Economic: - if economic levy Product will be reducing and if economic

gives cheap price. Produce will improve. Government investments with

Swadeshi PLC the company future product will improve.

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Social and Cultural: - khomba soap’s social and cultural most too difficult to

evaluate. It is changing what product want to product for consumer because

every one customer has different parching habits.

Technological Environment: - New Technological environment creates new

product market and product opportunities.

PRICE

Price is amount of money changed by product or service, or the sum of all the

values that consumers exchange for the benefit of having or using the product or

service.

(Russian proverb)

Corporate Culture: - They decides market selling price.

Suppliers: - Suppliers supply in best price for customer and hat price is 35/=

now.

Competition: - competitors companies (Lus, Velvet, Lifebuoy, and Dettol)

see our Herbal soap price.

Customers: - Customers compare to buy herbal soap.

Publics: - Publics choose low price and best quality soaps.

Political: - Manufacture wants to supply to customer in best price.

Government will impress legal.

Economies: - If investment in company. Product prices reduce. Saving

habits and tax are decides in price.

Social and Cultural: - Some customers decide to buy herbal soap because

they regularly buy Swadeshi PLC’s product.

PLACE

The middlemen is not a hired link in a chain forget by a manufacture, but rather an

independent market, the focus of a large group of customer for whom he buys.

(Phillip McVey)

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Suppliers: - suppliers supply from producer to customer or intermediaries.

Intermediaries: - They have vehicles, parking place and stores.

Customers: - They buy Cargill food city, normal shops and Retailers.

Political: - The government checks Swadeshi PLC’s factory, machineries

and product place.

Economies: - our product sales in world island wide but Khomba Clear soap

is big price so can’t sales in village side.

Technological: - Take new material and use with technological in the place.

PROMOTION

Are the means by which an organization attempts to inform, persuade, and remind

consumers – directly or indirectly about the products they sell.

Staff Relationships: - They decide about what promotion wants to give for

people.

Suppliers & Intermediaries: - They give to promote customers and Retailers

Customer: - They will get promotion E.g.- have offer discount for regular

customer

Social and Cultural: - Swadeshi PLC builds hospital and schools.

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Task 4

The five levels of a product

Five Levels of KHOMBA

1. Core benefit:- Khomba Lemongrass Shower Cream

Khomba Lemongrass Shower Cream Satisfy customer need. Contains the

natural herbal ingredient Margosa (Neem/Kohomba) and Cucumber,

which deeply clean and moisturize your skin. The natural extract of

Lime will keep your skin clear and refreshed all day.

2. Basic product : - Strong & Healthy Herbal Shampoo

Satisfy customer need and for lengthy and volume hair. Troubled with

hair breakage, thinning and loss of hair, here’s a perfectly natural

solution to beef up brittle hair. Khomba herbal strong and healthy

shampoo will help you maintain hair free form split ends, tangle and

breakage. The natural blend consisting of Margosa, Soya Protein and

Lemon grass will fortify and make your hair grow beautifully strong

potential products

augumented products

expected products

basic product

core benefit

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3. Expected products :- Khomba Hair Repair Shampoo

Satisfy customer need and for lengthy and volume hair and for weak &

Damaged hair Khomba herbal hair repair shampoo with Margosa,

Vitamin E &Olive oil is designed especially for you to repair damaged

hair. It will strengthen and shield hair against future damage and frizz.

4. Augmented products:- Khomba Herbal Soap

Khomba (Margosa) soap has oil and soap’s effect. It can use hair and

body. The Soap products pure materials. As powerful cleansing

properties not only does it keep skin healthy, but it also cleanses. The

body of all external impurities. Herbal beauty soap-Khomba pure, all

natural soap for safe and healthy beauty therapy.

5. Potential products: - Khomba Clear Herbal Transparent Soap. Khomba

Clear soap is top level in khomba brand.

• Khomba Clear is especially designed for cleansing, moisturizing and

improving the skin complexion. Its refreshing fragrance will keep your

skin fresh throughout the day.

• Khomba Clear the new transparent soap contains the time-honored

purifying ingredient Kohomba (Margosa), in combination with Lime and

Cucumber, offering a unique herbal mix.

• Kohomba (Margosa) and Lime deep cleanses and tones the skin whilst

Cucumber soothes the skin leaving it refreshed and free of impurities,

promoting clearer healthier looking skin.

• Used by people all over the world. Kohomba (Margosa) is a herb proven

to be safe and gentle on all types of skin and it has been used for

centuries as a herb with natural germ kill properties.

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Conclusion

The KHOMBA is native soap due to that It has the emotional value addition. Not only

emotional value addition but also it has the functional value same as other brands. It is

going to market under the SWADESHI PLC. The SWADESHI PLC already has country

wide distributors. It is well recognized brand also. Therefore, the KHOMBA has the

competitive advantage over the LUX, LIFEBUOY, VELVET and etc. KHOMBA can

maintain the continuous supply without effect by international market. So, the KHOMBA

can satisfy its customers at any time.

Though, it is native brand. The production of the soap is slightly old sector to SRI

LANKA. It has insufficient experience due to that it has to face lot of problem from

production side and marketing side also. To overcome this problem, the company should

appoint the experience workers and get the help from expertise in abroad. Further, the

state should appoint the researchers to research and develop this sector. The KHOMBA

cannot satisfy the total demand at initial stage due to pressure from other competitors and

lack of technology and knowledge in this sector. The KHOMBA should satisfy and keep

its initial level customers while increasing the market at the end of the next quarter year

2011. It should capture the 18.5% of market as mentioned in objective.

The termination of war creates the good marketing environment in SRI LANKA.

The people have positive mind set towards the Lankan products. KHOMBA has lot

of opportunity at this marketing environment. There are only few competitors.

Therefore, KHOMBA has low competition from competitors. Anyhow, unsatisfied

demand is available in the market. The KHOMBA has the above opportunities to

penetrate the market and it can achieve its goal.

KHOMBA will reduce the import soap. Therefore, the exporting soap countries will

reduce their soap import to us in retaliation manner. Therefore, the country will face

sudden increase in demand. Therefore KHOMBA has to develop in very rapid phase

to handle any amount of demand in country. KHOMBA needs lot of communication

to change the customers. Attitudes from low price mindset to premium price.

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Recommendations

KHOMBA has a high market share and is the leader of natural beauty and gives natural

protection soap industry which is its biggest strength. The advertising campaigns

launched by KHOMBA have been very effective and have positioned it well in the minds

of its consumers and KHOMBA was the first brand of good-quality Natural Beauty soap

that was launched in SRI LANKA.

KHOMBA can also introduce a new product line of liquid cleaners and other related

products to increase its growth so can be to catch more customers that’s good ways

The weakness of KHOMBA is higher sizes relative to its competing products. A 70grams

KHOMBA original herbal care soap bar is available for Rs.38 whereas the 100 grams size

bar of VELVET is available for Rs.45 and 100 grams size bar of LOFEBOUY is

available for Rs.43 so KHOMBA want to increase soap’s size and reduces the soap price.

Another weakness of KHOMBA is no halal certified to its competing products whereas

the VELVET is certified as halal so KHOMBA want to get halal certifiet. Similar

products are increasing other LIFEBUOY, treat and DETTOL, beauty soap like LUX,

VELVET. SWADESHI PLC can be best place in some years.

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References

1. Pcm study pack - SLIM

2. www.wikipedia.com

3. News paper (Sunday times and Sunday leader)

4. www.swadeshiherbal.com