1.0 Project Title Swadeshi industry is a leading company who is mainly manufacturing herbal soups. It currently holds 20% market share in herbal soups. Rani soup is the one of the main product they have in soups. The product mainly competes with other herbal soups like lifebuoy herbal, velvet, Lux (Sandal wood). The company now is trying to popular the product among the consumers in urban areas.
2.0 Overview 2.1. Background Swadeshi industry, one of the leading herbal beauty soap manufacturers in Sri Lanka, had performed very well in last few decades. It is established in 1941, during that time period they have achieved their organizational goals as well as the marketing goals. During that time the company was able to captured 20% of market share. The people (soap consumers) have a good image about the Swadeshi products because of the company strategies were prepared by Sri Lankan way so it is a greater advantage for them. always they identify wants and needs of Lankan people, for an example using herbals (Sandal wood, Neem, Aloe Vera ) for their products, because of these are the aurvedic herbal (has been used for centuries) extracts to ensure cleaning body skin and hair very healthy and lustrous looking. After the 1970, Swdeshi had faced by many difficulties to survive the market, according to certain circumstances such as when changed the close economy to open economy most foreign products are directly came through the Sri Lankan market. As a result of multinational companies products are dominate by domestic products, because their quality was so good, promotion methods are so effective and prices are less than the local products (they use new technology). Therefore it should be create high competition where as consumers have good opportunity to choose alternative products as their preferred.
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To face high competition firstly they must determine their main competitor for an example Unilevers, Hemas, and Godakanda Herbals. Then narrowly studying them, why people are shift to their products, what are the strengths and weakness like wise. It is convenient to find out how they became marketing leaders. This scenario must effective for the Swadeshi, so we should make good marketing research. Also most important thing is enable exist reliability of feedback, otherwise it should be unsuccessful Since 2004, Swadehi has started to export its products to India, Bangladesh and Pakistan. There have range of products and produces for all customer segments.
Customer Segment
Product name
Women
Rani, Apsara, Khomba
Men
Khomba
Children
Khomba Baby
Sportsmen, Carpenters
Sportsmen Plus
Source: SWADESHI Industries Board paper (March 2007)
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2.2 Information about “Rani”
Rani Sandalwood a beauty therapy herbal soap with a touch of nature's gifts pioneered the toilet soap segment and together with branded laundry soaps revolutionized the soap industry in Sri Lanka in the dynamic history of the Swadeshi Company. The Swadeshi Industrial Works Limited, now extend the ancient beauty therapy and herbal heritage in an ayurvedic stratosphere that provides personal care solutions blending nature gifts to give a touching modernistic experience to the discerning consumer. Swadeshi industrial works Ltd introduced the first locally produces branded Herbal Toilet Soap, Rani, to the market 50 years ago. Sandalwood has been the traditional beauty secret of women for centuries. Rani Sandalwood soap is considered the Queen of beauty soaps. For over half a century Rani has been the favored choice in sandalwood soaps in Sri Lanka. Beauty conscious women always trust Rani Sandalwood soap with its cooling perfume to care for their skin. But during the past 2 years, the sales of this brand declined alarmingly. In a bid to stem and reverse this decline, Swadeshi Marketing in August 2006 launched a variant with a new fragrance, branded Khomba – fresh, while retaining the original as RaniWhite.
2.3 Literature search 3
The purpose of this literature search was to obtain a clear understanding about the problem faced by the consumer as well as to gather relevant information regarding that issue. This laid the foundation to the research and assisted the research process. This secondary data gave an insight to the herbal beauty soap market in Sri Lanka and how consumers reaction, when it comes to purchase. This information was gathered through secondary data. These were data, which were collected and used for past projects such as statistical reports, journals, reports of governing bodies, company’s web sites and etc. Using these types of data can result in less cost. However it might not consist of the current changes that are relevant to the issue, which is one of the major drawbacks when dealing with secondary data. According to the research problem that we are facing, it is very important to identify the beauty soap industry, market, potential growth and buyer behaviour when it comes to purchase the product. The information given below is giving the better understanding about above issues.
2.4 Soaps Industry Information Soap industry falls by four main categories, which are beauty soap (Lux, Rexona, Delma), herbal beauty soap (Rani, Khomba, Vendol, Visaka), carbolic soap (Life buoy, Detol, Sportsman plus), and baby soap (Baby Sharemy, Pears, Johnson Baby, Khomba Baby, Kakulu)
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This graph shows that Herbal beauty soap may be dominate by next few years, Now in Sri Lankan soup industry there is huge trend in using herbal soup rather than using usual beauty soups. It is greater oppoutunity to Swadeshi. They make sure to capitalized and expand their market as well. (Because above the chart 38% they were led by 20%) Bellow table shows the all island value market share of all brands in Sri Lankan soup Industry.
TOILET SOAP UNILEVER SRI LANKA LTD LUX LIFEBUOY LB Total LB Herbal LB Gold LB CLEAR SKIN PEARS KHOMBA BABY CHERAMY VENDOL VENIVAL DELMA JULIET HARISHCHANDRA VELVET KEKULU JOHNSON'S BABY VISAKA DETTOL APSARA RANI
Mar 2007 100.0
Oct 2007 100.0
Nov 2007 100.0
Dec 2007 100.0
Jan 2008 100.0
Feb 2008 100.0
Mar 2008 100.0
62.2 15.3 37.6 25.6 7.2 4.5 0.3 9.1 6.7 7.0 2.6 2.4 0.1 1.1 1.9 2.5 0.7 0.5 1.8 1.5 3.9
60.1 13.8 37.5 28.5 6.5 2.3 0.3 8.7 6.1 8.6 2.8 2.0 0.0 1.0 2.4 2.4 0.5 0.6 2.2 0.9 3.5
59.8 13.1 37.7 29.7 5.9 1.9 0.2 9.0 6.2 9.3 2.8 1.7 0.0 0.9 2.2 2.3 0.5 0.5 2.4 1.0 3.4
59.0 12.2 38.0 30.5 5.5 1.8 0.1 8.7 6.4 9.3 3.0 1.7 0.0 1.0 2.3 2.5 0.5 0.5 2.4 1.6 4.6
61.1 12.6 39.0 31.4 5.7 1.8 0.1 9.5 6.4 9.4 3.0 1.2 0.0 1.0 2.3 2.2 0.6 0.4 2.7 1.2 3.4
60.6 13.5 37.8 30.5 5.3 1.9 0.1 9.2 6.4 9.1 2.9 1.1 0.0 1.1 2.7 2.3 0.6 0.5 2.5 1.0 3.8
59.2 13.5 36.5 29.6 5.4 1.4 0.1 9.2 6.9 9.4 3.3 1.1 0.0 1.1 2.5 2.6 0.5 0.5 2.5 1.2 4.1
Source: SWADESHI Industries Board paper (March 2008)
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2.5 Market Share of Sandalwood Soaps industry Below graph represent that Rani has matured in Sandalwood Market
3.0 Competitors Here it should be noted that even though Rani soap face direct competition from the below listed soaps, they face indirect competition to a certain level from soaps such as Vendol, Apsara, Life Buoy and Rexonna.
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• Lux Soap
Lux was first introduced to the Sri Lankan market in 1931. From its inception, Lux has been the leading beauty soap brand in the Sri Lankan toilet soap market. In 2005, Lux introduced a new range of soaps with visible ingredients to enhance the bathing experience of the consumers. Lux also offers a range of shower creams for superior bathing benefits keeping astride with the changing needs of the Lux consumer. Understanding the beauty ritual of gorgeous stars the world over, Lux has captured their beauty secrets and has presented it in 4 modern and sensually shaped tablets. 1. Lux Almond Delight – with almond oil, peach and cream 2. Lux Orchid Touch – with orchid petals in jojoba oil 3. Lux Nature Pure – with oil of kohomba and cucumber extracts 4. Lux Golden Glow – with sandalwood oil and honey
• Khomba Soap
The oil which is extracted from the Margosa or Neem seeds, has both medicinal and therapeutic properties. The Margosa oil, an active ingredient of khomba (Margosa)
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soap, as powerful cleansing properties not only does it keep skin healthy, but it also cleanses.
• Velvet Soap
Hemas commenced manufacturing its range of adult toilet soaps in 2005. This range of Velvet Skin Care Soap has gained popularity with the middle market segment. The essential material used in manufacturing is fatty acids and the environmentally friendly process does not generate any by-products. Velvet is a range of skin care soaps with a unique Moisturizing Vitamin Complex combining a moisturizer with essential skin vitamins A, C and E, to keep skin soft and smooth. Coupled with nurturing skin care ingredients Rose, Milk and Sandalwood, the range consists of three variants, Velvet Rose, Velvet Milk and Velvet Sandalwood. These three breathtaking fragrances of Velvet have been especially chosen to ensure a pleasurable bath experience.
• Dettol Soap
Dettol soap has three veracities the market available nationally Dettol Original, Dettol Skincare, Dettol Cool. The new improved soap rang continues to bear recommendation from IMA- Indian Medical Association.
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Dettol Original Soap - New and Improved Dettol Original Soap is specially formulated for everyday use. Dettol Original Soap is 10 times better at fighting germs. So give Dettol's trusted protection to the entire family. Available in two sizes 75g and 125g.
Dettol Skincare Soap - Dettol Skincare Soap offers the perfect balance between your beauty and protection needs. Dettol Skincare Soap is formulated with moisturisers to help nourish your soft skin. Available in two sizes 75g and 125g.
Dettol Cool Soap - Dettol Cool Soap combines Dettol's trusted protection with the coolness of menthol. A bath with Dettol Cool Soap will not only refresh and reenergize you, but also give you protection from germs. Available in two sizes 75g and 125g.
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• Baby Cheramy Soap
Baby Cheramy Aloe Vera Cream and soap are made up of special extra moisturizing, extra soothing formulations, which protect babies' tender skin from excessive dryness & irritation.
Competitor analysis Brand
Lux Khomba Vendol Rexonna Apsara Rani Life bouy gold Detol Delma Visaka Others Fruity soap
Mkt. Vol. c/s ann. 2003 300,000
Mkt. Vol. c/s ann. 2004 312,000
123,000 108,000 102,000 50,4000 60,900 84,000 12,000 30,000 12,000 24,000
96,000 120,000 84,000 33,000 51,000 96,000 6,000 18,000 6,000 36,000 30,000
Growth % 4 -21.95 11.11 -17.65 -34.52 -16.26 14.29 -50 -40 -50 50
Mkt. Vol. c/s ann. 2005 318,000 126,000 84,000 60,000 54,000 61,200 84,000 6,000 12,000 6,000 36,000 30,000
Growth % 1.92 31.25 -30 -28.57 63.64 20 -12.5 0 -33.33 0 0 0
4.0 Problem Definition 4.1 Management Problem The Rani Beauty Soaps had been introducing to the Sri Lankan market during the last 50 years. The product has not been popular among the public in urban areas belonging to the high class in society. Hence the decision problem is “Should Rani soaps be reposition in urban areas in Sri Lankan market?”
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4.2 Research Problem In order to capture high market, the company needs to know the needs and wants of that particular market. Therefore the research problem is “How to minimize negative attitude towards Rani Soaps among the consumers in urban area.”
4.3 Research Objectives 1) Size of the Rani Soups consumer market •
To achieve market share of 7.45%
•
Attract the young generation
•
Attract high income earners in urban areas.
2) Understand the brands and product usage. •
Reasons for use these brands. Degree of satisfaction with brands Likes and dislikes of these brands Barriers for not using this brand
•
Reasons for not using Rani
•
Future growth of herbal soups market. In terms of market share New trends
3) Concept Development. • •
Overall Opinion Ratings on key attributes Color Fragrance Shape Lather 11
Moisturizes / soft • •
Intention to buy / brand awareness Areas of improvements
4) Gain brand loyalty
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By providing added values such as long lasting freshness with sandalwood fragrance
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How to reduce Brand switching
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How to create a strong brand awareness through intensive marketing solutions
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Change the physical appearance of the product
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Frequency programs encourage repeat purchase
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Develop and reinforce brand identity
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Building long term brand preference
5.0 Research Methodology/Design 5.1 Data collection Methods
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Collected data plays a vital role in problem solving. Since we found the decision and research problem (as mentioned above) & in order to give solutions and recommendations for them we use several strategies to collect data. Therefore to collect data we use several strategies. Initially an Exploratory Research, under this exploratory research mainly we are planning to stress on in-depth interview, focus group interviews. Secondly we look for a Descriptive Research by using a questioner.
5.1-1 Exploratory research Main objective of conducting an Exploratory Researches is to identify the problems faced by the Rani soap in its life cycle.
5.1-2 Focus group interview One theme of the product is “Queen of beauty soap”. The hidden implied term of this product theme is “Soap for Queens”. Thus according to product theme our focus group would be females in the age between 16 –30. Those people would be current users or people who planning to purchase the soap in future. Primarily according to research problem these interviews will be run in urban areas.
In this case our
interviewing unit asks questions and carryon interviews according to situations (unstructured). The questions will build based on the age, preference, usage, current perception to wards the Rani soap.
5.1-3 In depth Interview This interview will be conducted by our senior research manager with a top person of the Swadeshi Company. This is an unstructured extensive interview done by debriefing for direct in depth answers. In this scenario Interviewee would be Managing Director of the Swadeshi Company, Mr. Kamal Serasinghe. 13
5.1-4 The Design of the Questionnaire
Type – Since the questioner covers a wider area of research it is designed in an attractive, simple and user friendly manner in order to reduce the tension while marking it. Above strategies will lead to quality outcomes which are essentials for success of the research. In order to beat the time pressure and to high convenience of both interviewee and company we are using text boxes and multiple choice questions. This will help out our data analyzers to do accurate calculations efficiently.
Three types of questions
Simple-dichotomy: This required the interviewee
to choose from two
alternatives.
Determinant choice: This gave the interviewee with multiple
choices or
alternatives.
Checklist questions: This allowed the interviewee to provide
multiple answers. Pre-testing Pre testing is where questioner is tested with a small segment of the focus groups which represent the target market of the Rani soap. Those are 16-30 years age and who are living in the urban areas. In this session we use our previous questioner samples to get a basic idea. In order to see the quality of the questioner we will
-consult our senior researches in our organization as well as current employees, distributors, sales representatives, suppliers at Swedeeshi Company.
5.2 Sampling Method
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We as Swadeshi Research Unit we have a clear idea about the sample to be studied. Those are: •
Whom to survey (the sampling unit)
•
How many to survey (the sampling size)
•
How to select them (the sampling procedure)
• The following stages will be carried out in order to determine the sample for the research.
Defining the Population
Sample For the Research
Determining the Sample Frame
Execute the Sampling Process
Selecting Sampling Technique
Determining the Sample Size
1) Whom to survey Based on our researches we clearly identified our sampling unit. Those are young females in urban area. This sampling unit directly link with the Research Problem which is “How to minimize negative attitude towards Rani Soaps among the
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consumers in urban area?� Correctly identifying this unit leads to second stage successfully which is Sample size.
2) How many to survey Researchers have clearly showed that higher sample size leads to represent a higher/collective target market. The sample size chosen should satisfy the research objectives Small sample can give highly reliable findings. We as the Swadeshi research unit planning to do the survey with 100-200 people of our target market. However there are several limitations for cover the whole target market. Those are finance, time, and resources.
3) Sampling procedure There are two methods of sampling. Those are Probability and Non-Probability Sampling methods. Probability sampling is a sampling procedure in which each element of the population has a fixed chance of being selected to the sample. This includes Random Sampling. So we as the Swadeshi research unit, planning to do a Probability sampling in order to get more accurate quality information for our further researches and for data analysis. The basis for this is the Random sampling. Since we have nearly three months to do our research this is the most effective and efficient way of collecting data. Non-Probability methods are including Convenience sampling, Judgmental Sampling and Snowball Sampling. In this stage we are planning to go through a Convenience sampling procedure with an object to get a quick respond. We are scheduling, to Compare and contrast the sampling data outcomes of Random Sampling and Convenience Sampling in order to see the validity of the research data before to do a complete data analysis.
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5.2-1 Target Population Since our research is carrying out to find identify the attitudes, perceptions of people and to find new approaches to reposition the Rani soap among the consumers in urban areas.
Hence our target population consisted of young girls, working women,
housewives within the age of 16 – 30groups residing in urban areas of selected provinces, as they are the customers that the company is trying to reposition the product by reducing there negative attitudes towards Rani soap. The target populations earns an income of Rs. 10000 - 100000 or more and are in the upper middle class or above, because the company is going to popular the product among middle class and above. To represent the target population, we took females (young girls, working women, housewives) live selected urban areas provinces of Colombo and Gampaha.
5.2-2 Sample size Due to the time and budget constraints we obtained data from 100 respondents using the questionnaire outlined below. The sample will select using the techniques of systematic sampling at randomly selected locations in the survey areas.
5.2-3 Questionnaire Even though there is a need for information from more respondents due to geographical and time limitations, the questionnaires will only distribute among this 100 of females in urban areas of Colombo and Gampaha. The questionnaire will distribute on the month of August 2008.
5.2-4 Description of Key Characteristics of the sample 17
The sample consisted of 100 females in the age groups of 16 to 30 from Colombo and Gampaha areas. From the respondents most of them are frequently buy toilet soaps and aware of famous brand available in the market.
5.3 Measurement Instrument The questionnaire was designed to understand the current attitude of the customers towards the Rani soap and find out their expectations and point of view regarding Herbal beauty soap This helped our research team refined and analyzed the information gathered from the questionnaire with the use of a statistical software package called Statistical Package for Social Science (SPSS) that offers wide variety of powerful tools which assisted to process the collected data to generate the end results that was required to satisfy the research objectives. The following table would outline what the questionnaire was designed to measure. Objectives Understand the customer movements
Questions 1,2,3,4
Competition analysis
5,6,7
Evaluation of the product
8 - a,b,c
Identify the reasons, attitudes, likes and 9 dislikes of the people using toilet soap. Identify the people’s attitudes towards the 10 toilet soaps. Costumers ideas to reposition the product
11,12
Evaluation of the product
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The following information’s are basically highlighted in the questionnaire. Consumers Likes / Dislikes Overall Opinion
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ďƒź Ratings on key attributes (Extremely important, Very important, Fairly important, Not so important, Not at all important) ďƒź Areas of improvements
5.3-1 Measurement scales For measurement purposes, this research uses most of the primary scales of measurements. Such as Nominal, Ordinal, Interval, Ratio. Nominal Scale Nominal scale is used for the purpose of identification; there is a strict one to one correspondence between the numbers and the objects. Each number is assigned to only one object and each object has only one numbers assigned to it. Ordinal Scale This indicates relative position, not the characteristic as compared to the object ranked second. And this indicates the relative positions of the objects but not the magnitude of differences between them. Interval Scales This contains all the information of an ordinal scales, but it also allows to compare the differences between objects. Ratio Scales This scale can identify or classify objects, rank the objects, and compare intervals or differences. Except these basic measurement scales this research uses Likert scale method. This use widely to indicate a degree of agreement or disagreement with each of a series of statements about the stimulus objects.
5.4 Proposed Analytical Method
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This is the method in which the collected data will be analyzed to fulfill our research objectives .By using these methods we can analyze the raw data we have collected from our questionnaire. There are two steps in this process – editing and coding.
Editing involves examination and if necessary commanding some minimum quality standards. Editing involves management analysis and if needed it looks into errors that may have occurred in the questionnaires. This inspection and alteration will be basically done in two stages. They are field editing and In-House editing. The next step is Coding .The raw data was transferred into meaningful information that will be useful for decision making. In this particular case numerical coding will be used to give meaningful symbols to the questions in the questionnaire.
5.5 Presenting the Data Research team will present all data by analyzing in the Analysis report and in the presentation. Analysis report wills analysis all the facts which found in the survey. During presentation appropriated graphs such as histograms, bar charts, line charts, pie charts, spider charts, along with tables and figures will be used to further present the findings.
6.0 Limitations of the Study It is impossible to make any research or study perfect and error free. There are some researches limitations due to sample selection .It will affect to the accuracy of the final results. These limitations are pointed out so that future research can be improved. The following are some of the limitations that came about during the course of the study. 20
•
Time allocation and limited sample size will create problem regarding the accuracy of the research. The research was carried within the course of seven weeks and this left the researches with a very short time.
•
The research was limited to Colombo. This may not have enabled us to analyze this issue comprehensively. Because more popular north and east due to terrousism problems.
•
Although the sample size is a fair share of the entire population problems could arise as there is no sufficient evidence or findings on the population itself. The other factor regarding the sample is that it may not be a true and clear representation of the entire population and the sample could be bias.
•
Also due to time constraints the case study analysis will not be used in gathering primary data.
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Time allocation and limited sample size will create problem regarding the accuracy of the research.
•
Respondents not responding to all questions in the questionnaire
•
Some times information is not enough to make the good decisions.
7.0 Market Conceptualization
7.1 Brand SWOT analysis STRENGTHS Market leader in the Sandalwood soap sector 21
Rani is the first branded beauty soap in Sri Lanka Brand has a high awareness level BRAND particularly strong in Tamil speaking areas WEAKNESSES Out of the five attributes which influence consumer most when purchasing toilet soap Brand popular among the mature audience (Rani is “old” person’s brand) Brand is not so popular among Sinhala speaking market Sandalwood as a herbal category, is not popular in Sri Lanka No antibacterial / germ kill property- category is moving towards this need OPPORTUNITIES Product line extension for face cream, shampoo sachet, cologne spray Rani100g – create new image/ positioning to capture young users Fairness segment could be exploited More share from Sinhala speaking market To capitalize on Tamil media to get greater share from Tamil speaking market THREATS Can expected competition from market followers Threats from imported soups Heavy A & P budget / noise made by giants
8.0 Time Plan & Budget Time Plan Activity
July
August
September
October
W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4
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Deciding on Topic Collecting Info on Rani Collecting Info on competitors and Swadeshi industry Completing and Handing over the Proposal Questionnaire Designing Distributing and filling out questionnaire Entering data in to SPSS Analyzing Data Conclusion and Reporting and Presenting
8.1 Budget
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Component
Estimated Cost Rs
Questionnaire development
2500
Distribution of questionnaire
500
Wages
20,000
Traveling expenses
4000
Completion of report
1000
Miscellaneous expenses
2000
Total expenses
30,000
References
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SWADESHI Industries Board paper (March 2008)
Swadeshi Industries Annual Report (2007)
Malhotra,k.(1999). Marketing Research.(3rd ed.). Hall of India Private Limited – New Delhi.
Zikmund,w.(2003). Exploring Marketing Research.(Student ed.). Thomson Asia pte Ltd- Singapore.
http://www.swadeshiherbal.com/history.html http://www.unileversrilanka.com http://www.hemas.com
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