GROUP ASSIGNMENT FOR A DEVELOP A NEW COCONUT OIL BRAND

IN

SRI LANKA

GROUP ASSIGNMENT

Course - Business Simulation

Course Instructor - Mr. Ravi Dissanayake

Deadline - 27th September, 2015

DIPLOMA IN MARKETING

Department of Marketing Management

Faculty of Commerce and Management Studies

University of Kelaniya

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Team Members

M. H. A. Nazim - DM / 2014 / 041

M. Marwan - DM / 2014 / 017

M.N.M.Shafraz - DM / 2014 / 016

D.Wijesinghe - DM / 2013 / 040

B.D. Lakmal - DM / 2013 / 026

2

Acknowledgment

We appreciated the contribution made by the all the members to

complete the assignment successful. Team members’ hard work, dedication,

accountability and cooperation are the secret of success of this report.

Especially we have to thank the department of senses of statistic who

provided us information to make accurate decisions. Furthermore we extent

our heartiest gratitude to our senior lecturer Mr. Ravi Dissanayaka

(department of marketing management – university of kalaniya) who gave us

the guidance, encouragement and practical and theoretical knowledge to

complete this assignment successful and meaningful.

We shall take this opportunity to thank all the lectures of department of

marketing management – University of Kelaniya who nourished us over a

period of one year by sharing their valuable thoughts and experience and

knowledge to malt us professional marketers.

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CONTENT

1.0 Executive Summary

1.1 Introduction

1.2 Goal

1.3 Slogan

1.4 Vision

1.5 Mission

1.6 Objective and Core Values

2.0 Situation Analysis

2.1 SWOT Analysis – Internal Environment

2.2 Overcome Techniques

2.2.1 Weaknesses

2.2.2 Threats

2.3 PESTEL Analysis – External Environment

2.3.1 Political

2.3.2 Economical

2.3.3 Social

2.3.4 Technological

2.3.5 Environmental

2.3.6 Legal

3.0 Competitor Analysis

3.1 Michael Porters 5 Force Theory

3.2 Identifying the business opportunities

4.0 New Product Development Process

4.1 Idea Generation

4.1.1 Primary Research Data

4.1.2 Secondary Data

4.2 Idea Screening

4.3 Concept Development and Testing

4.4 Marketing Strategies Development

2.4.1 Segmentation Profile

2.4.2 Market Targeting

2.4.3 The Target market

2.4.4 Market Positioning

5.0 Managing Product Mix

4

5.1 Managing Product Mix – Usage of 4 P’s

5.1.1 Product

5.1.2 Price

5.1.3 Place

5.1.3 Promotion Mix

5

1.0 Executive Summary

1.1 Introduction

“Lakgrow (Pvt) Ltd” is a fast moving consumer goods manufacturing company Importer

and distributes palm oil and manufacture coconut oil under the name of Health Care Pvt

Ltd and decide to introduce a branded Coconut Oil targeting young females/ youth /

teenagers, housewives, Hotel, Outdoor Catering, Bakery, Fast Food Outlets, Hostels and

Canteens segments (B2C and B2B), those who are Concern on health and hygiene

factors. The company is one of the market leaders in Sri Lanka for palm oil and food

products. We have obtained Health ministry approval and yet to obtain SLS certification

for Coconut oil base products.

Lakgrow (Pvt) Ltd has decided to introduce a locally manufactured coconut oil. We have

identified the market gap through a primary research among XXX individuals and B2B

segments.

According to the research findings Lakgrow (Pvt) Ltd has decided to market a new

coconut oil under the company of Health Care Pvt Ltd. To develop brand name “Cook

well” to address the market Gap.

We have observed the power of Branding as the industry for coconut oil is a very

competitive and competitors has well positioned their brands in the food industry.

Health Care (Pvt) Ltd is going to introduce a new coconut oil brand Called “Cook Well”

for Sri Lankan market by targeting B2C and B2B.

1.2 Vision

To be the premier food manufacturing company by setting the highest standards for

manufacturing, healthy and hygienically certified food products in Sri Lanka.

1.3 Slogan

“Healthy Cooking Coconut Oil”

1.4 Mission

To provide our customers peace of mind by setting the highest food safety standards in

providing solutions to Healthy and hygienically certified food products in Sri Lanka.

Whilst giving our employees a challenging, rewarding and a fulfilling career”

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1.5 Objectives / Core Values

1.5.1 Objectives (SMART)

To provide a solution for health concern customers

To be amongst the top 3 coconut oil brand in 2020.

To achieve the total sales revenue of LKR 500 Million per month for the first year.

To achieve the market awareness level to the 50 percent in the first half of the year.

We strive to deliver Healthy and hygienically certified coconut oil to B2C and B2B.

Enhance brand image and encourage the repeat purchasing

Improve the “Health Care (Pvt) Ltd”s market share in 2022

To be the top of the mind cooking oil brand in 2025

Successful product diversification – New product and New Market

Ansoff’s Matrix - Product/market growth matrix suggests that a business' attempts to

grow depend on whether it markets new or existing products in new or existing markets.

The output from the Ansoff product/market matrix is a series of suggested growth

strategies which set the direction for the business strategy.

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Cook Well

2.0 Situation Analysis

Since Lakgrow (Pvt) Ltd is a profitable business for the organization which enjoys 40%

of the market share. It has recorded as the 3rd largest importer for Palm oil. Sitiation

analysis as follows: SWOT, Pestel and Micheal porters 5 force theory. It analyzed the

environment both externally and internally. Lakgrow (Pvt) Ltd is one of the leading

FMCG Company in Sri Lanka performing very well in the last few decades.

During the transformation of open economy most of the foreign products are directly

imported to Sri Lankan market. Products of Health Care (Pvt) Ltd has to face competition

as a result of the international brand dominated by the domestic market, promotion

methods are so effective and prices are less than the local products (as they use advanced

technology and low priced labor and raw materials). Today’s consumers have a wide

choice of products as their preferred because of many ranges of products exists in the Sri

Lankan market.

2.1 SWOT Analysis – Internal / External Environment

The SWOT analysis is an extremely useful tool for understanding and decision-making

for all sorts of situations in business and organizations. After identifying the market

behavior we planned to have an analysis of this project. SWOT is an acronym for

Strengths, Weaknesses, Opportunities, and Threats.

It can be observed strength and opportunity from internal environment, Opportunities,

and Threats from external environment.

Source – Marketing Management – 14E edition by Philip Kotler, SWOT analysis Page 43

Table No: 1 - SWOT Analysis

STRENGTHS

Well established organization

Parent brand image

Establish distribution channel for GT

Qualified and positive mind set of staff

Financial Strength

Good will of the organization

Well aligned value chain management

Labor turnover is lesser than industry

norms

WEAKNESSES

Poor knowledge on Technology and

Production capacity

High cost of production

Limited customer base

Brand is new and not well established

Less awareness of the Brand

Reliance on outside raw materials

Availability of substitutes

Machine maintenances take more time

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Strong Personal Relationship with the

government

and service expenditure is higher,

since most of the service providers are

from overseas

Lessor IT technology, which is not

sufficient to compete with competitors

No experience on Modern trade &

B2B segments

OPPORTUNITIES

Potential market growth and trend

Economic growth

Export opportunity with standards

On line selling opportunities / Social

media promotions

Growing market trend to purchase

locally made product

Government backup to local industries

Tax and interest free scheme for local

industries by the government

Can focus on young men segment

Scope of expanding the market

vertically and horizontally

Niche marketing

Female population is high in Sri Lanka

THREATS

Foreign exchange Inflation

Rapid increase in the cost of raw and

packing materials

High level of influence / power of

traditional trade(bargaining power of

modern trades for margins)

People afraid go for the new products

Bargain power of suppliers

Entrance of similar kind of products to

local market quickly

Local market dominated by

international reputed brands

Financial strength of competitors

Switching cost is high

Emerging number of substitutes rising

in the market

The prevailing political unrest though

out the country

2.2 Overcome Techniques of SWOT

2.2.1 Weaknesses

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dedicated R&D department

Increasing the sales and marketing team by recruit new staff

Conducting overseas training and guidance programs

Getting consultants from overseas

2.2.2 Threats

Maintain a buffer stock for important raw materials

Maintain good PR with stake holders

Effective Advertisements and awareness campaigns (product recommendation by

dermatologist)

Mutual agreements with suppliers

Strong brand positioning

Reach rural level and urban customers in more effective way. Ex- Sponsoring

rural area events, etc…

2.3 PESTEL Analysis – External Environment

The PESTEL analysis is a useful tool for understanding market growth or decline, and as

such the position, potential and direction for a business. A PESTEL analysis is a business

measurement tool. PESTEL is an acronym for Political, Economic, Social and

Technological factors, Environmental and Legal, which are used to assess the market for

a business or organizational unit.

2.3.1 Political: These factors determine the extent to which a government may influence

the economy or a certain industry. Political factors include tax policies, Fiscal policy,

trade tariffs etc. that a government may levy around the fiscal year and it may affect the

business environment (economic environment) to a great extent.

2.3.2 Economic: These factors are determinants of an economy’s performance that

directly impacts a company and have resonating long term effects. [For example] a rise in

the inflation rate of any economy would affect the way companies’ price their products

and services. Adding to that, it would affect the purchasing power of a consumer and

10

change demand/supply models for that economy. Economic factors include inflation rate,

interest rates, foreign exchange rates, economic growth patterns etc. It also accounts for

the FDI (foreign direct investment) depending on certain specific industries who’re

undergoing this analysis.

2.3.3 Social: These factors scrutinize the social environment of the market, and gauge

determinants like cultural trends, demographics, population analytics etc. An example for

this can be buying trends for Western countries like the US where there is high demand

during the Holiday season.

2.3.4 Technological: These factors pertain to innovations in technology that may affect

the operations of the industry and the market favorably or unfavorably. This refers to

automation, research and development and the amount of technological awareness that a

market possesses.

2.3.5 Environmental: These factors include all those that influence or are determined by

the surrounding environment. This aspect of the PESTEL is crucial for certain industries

particularly for example tourism, farming, agriculture etc. Factors of a business

environmental analysis include but are not limited to climate, weather, geographical

location, global changes in climate, environmental offsets etc.

2.3.6 Legal: These factors have both external and internal sides. There are certain laws

that affect the business environment in a certain country while there are certain policies

that companies maintain for themselves. Legal analysis takes into account both of these

angles and then charts out the strategies in light of these legislations. For example,

consumer laws, safety standards, labor laws etc.

Table No 2: PESTEL Analysis

PESTEL

POLITICAL Red tape & barriers / influence for government approvals. Eg:

– Consumer Affairs, Health ministry approval, Drug

regulatory authority and Environment Authority Approvals.

Poor product knowledge among state decision makers, i.e.

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government department decision makers and approvers.

Discrimination Educational Law.

ECONOMICAL Currency fluctuations and inflations will have a direct impact

on the final price.

Tax structures and imports limitations and regulations.

SOCIO

CULTURAL

Sri Lankan Customers seek Quality, hygiene and Safety when

purchasing FMCG Products.

Sri Lankan people mostly like to purchase local products

rather than foreign products.

Due to the high context culture cost of brand switching is

very high.

TECHNOLOGICAL Poor awareness and technological availability in the rural

areas for promotions. Ex – Limitation for TTL.

The population within city/urban areas are benefiting by

technology.

New machines that could reduce production cost by being

effectiveness and efficient.

Communication method is growing up.

ECOLOGICAL Adoption of ECO Friendly Recommended Packing.

No side effects.

Recyclable products.

Growing social trends for CSR campaigns for

environmentally friendly products.

LEGAL Child labor law.

Safety measures on products packaging. Ex- Adult

supervision required, expiry date, Ingredients, and user

instructions, etc…

Patent approve product.

Product quality standards. Ex – SLS, ISO etc…

Adopting new Labor Law

3.0 Competitive Analysis

Competitive analysis is Strategic technique used to evaluate external competitors. The

analysis seeks to identify strengths and weaknesses that a company's competitors may

have, and then use that information to improve efforts within the company. An effective

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analysis will first obtain important information from competitors and then based on this

information predict how the competitor will react under certain circumstances. We have

used several methods to identify the competitor analysis.

http://www.businessdictionary.com/definition/competitor-analysis.html

Competitor analysis in marketing and strategic management is an assessment of the

strengths and weaknesses of current and potential competitors. This analysis provides

both an offensive and defensive strategic context to identify opportunities and threats.

Direct Competitors – Lux, Venival, Rani, Velvet, Kohomba, Lifebuoy, Dettol,

Classic whitening soaps and liquid soaps.

Indirect Competitors – Face wash brands, Moisturizing creams, Beauty Saloon

Treatments and Shower Gel

Potential Competitors – Medical treatments, Plastic surgeries, Skin

Transplantations etc.

3.1 Michael Porters 5 Force Theory

Michael Porter has identified five forces that determine the intrinsic long-run

attractiveness of a market segment and competitive position model provides a simple

perspective for assessing and analyzing the competitive strength and position of a

corporation or business organization.

Intensity and Rivalry of Competition

Threats of Substitutes

Threat of New Entrants

Bargaining Power of Suppliers

Bargaining Power of Customers

Table 3: Michael Porters 5 Force Theory

MICHEAL PORTER’S 5 FORCE THEORY

Intensity and Very High13

Rivalry of

Competition Multinational companies enjoys the major portion of the

market

Financially strong and stable companies

Equipped with modern technology

Product range availability

Well positioned and established Brands

Capable of launch a new product quickly

Well established island wide distribution network

Strong relationship with traditional and modern trade

Threat of New

Entrants

Very high

Any competitor can substitute the products in a very short

period of time

Tax free concession for local entrepreneurship

Technical support for local entrepreneurship

Availability of New innovative ways enter to the market

Competitors can create an artificial demand

Bargaining

Power of

Suppliers

High

Variable Standard raw materials from suppliers

Have to depend on imported raw materials

Due to purchasing of low quantity initially unable to sign bond

with suppliers

Competitors can dictate terms on supplier

Due to high quantity purchase by the competitor and they can

demand high quality raw materials for low price

Bargaining

Power of

Customers

Very high

Availability of wide range products Customers willingness to

purchase a reputed brand

Customers expectation is very high of a new product in terms

of quality and price

Very high Brand loyalty of customers

New trend in use of Liquid soap and shower gel

Threats of

Substitutes

Very High

Availability Alternatives products for the competitive price

range

Substitutes are well distributed

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Substitutes are well positioned in the market

Special tax free concession for local herbal products

 3.2 Strategies of Competitors

Offer products to target market at a lower price (Penetration Price)

Wider coverage in all over the country with more distribution channels.(Market

Penetration)

High customer loyalty and brand identification through their advertising

To providing a healthful, enjoyable and pleasant work place for all employees,

accompanying by skills development and career advancement opportunities.

Public relation activities (CSR Campaigns).

Sponsor Events and free trails for new products.

3.3 Strengths and Weaknesses of Competitors

3.3.1 Strengths of competitors

Easily react to environmental changes because of long term experiences.

Great strength of strong brand recognition.

Experienced labor force to provide an efficient and effective service.

Financially strong and stable.

3.3.2 Weaknesses of the competitors

Rely on traditional product offerings.

Problems related with identification of customer requirements.

Packaging and pricing related problems.

Competing in the market based on price only.

Lack of quality improvement.

Altering the ingredients to suit the changing environmental pollution.

Less usage of local raw materials.

3.4 Threat of the competitors

3.4.1 Imitate company pricing strategies

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Most of new entrant soap brands like us, try to introduce soap brands with fairly low price

to attract more customers from the existing companies. Therefore existing brands also

reduce their prices. But existing companies have high financial capabilities with high

performances with long term brand reputation, they can face the competition .Most of

customers tend to approach well reputed soap brands. So our brand cannot expect more

profit due to less number of loyal customers and are unable to bear the cost of production.

So it results in losses.

3.4.2 Rumors and promotion campaigns

Most of existing competitors do not like new entrants. Therefore they try to develop

rumors in the customers’ mind. Existing competitors enjoy high brand and customer

loyalty and have considerable resources to invest in advertising and promotions to protect

and grow their market share. Further, the major players enjoy favorable contracts with

key suppliers such as grocery stores, pharmacies and supermarkets which may be difficult

for new entrants to enter. Through the rumors and promotions they strive to grab the

customers themselves.

3.4.3 Product differentiation

Existing competitors imitate offering when new Product differentiation is introduced,

thereby creating a barrier to the entry by forcing entrants to incur expenditure to

overcome existing customer loyalties. New entrants must spend a great deal of money and

time to overcome this barrier.

3.5 Current Market Situation

The soap market in Sri Lanka is worth of 7 Billion rupees in the year of 2008 (LMRB

Data), which is the total market value of toilet soap and baby soap. The total tonnage of

toilet soap and baby soap is 22,000MT in the same year (LMRB Data).Hence it is evident

that most of the Sri Lankans use either toilet soap or baby soap for their bathing and other

purposes.

As a result of the new technology & infrastructure developments in the country in last 3

decades demand & competition increased. The toilet soap and baby soap marketers also

started to get use of the opportunity and started to put more marketing effort to capture

the consumers taste. The soap manufacturers used different marketing strategies to

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enhance their market share. Where they began to use marketing fundamentals to attack

the competition & grab or sustain the share.

With this marketing strategies adopted by the soap

manufacturers the consumers purchasing behavior also

started to fluctuate time to time based on different

reasons. Baby soap marketers positioned their products in

a very careful manner by adhering to the regulations set

By the different government institutes. But toilet soap marketers began to position their

products as beauty soaps where the most female consumers got attracted. Almost all the

toilet soap manufacturers enhanced the product characteristics to satisfy the female

consumers. The advertising campaigns had also been launched using well reputed

celebrities. Therefore female consumer behavior patterns happened to change time to time

based on different factors. Analyzing the consumer behavior of beauty soap is interesting

and critical for toilet soap manufacturers to improve & sustain their share in the market.

Varity of beauty soap brands can be identified in the Sri Lankan market, which consists of

several multinational & local brands. But the market is dominated by the multinational

brands.

Following graph shows the brands and their respective market shares in value (LMRB-

Data).focused on five brands which were introduced as beauty soap brands from the

scratch, which are Lux, Vendol, Khomba, Rani & Velvet. But the brand Lifebuoy will

also be considered in this study as it owns a substantially large market share in the toilet

soap market, which also could be impacted on the market shares of other beauty soap

brands though the Lifebuoy is not positioned as a beauty soap brand.

3.6 Toiletry Soap Market Products

LIFEBUOY HERBAL LIFEBUOY CARE

17

LUX-SOAPS

LUX-SHOWER GELS

18

KHOMBA

RANI SOAP

RANI SHOWER GELS

19

VENDOL VENIVAL

OTHER

4.0 New Product Development Process

4.1 Idea Generation

We have gathered information from two sources.

Primary Research Data

Secondary Research Data

4.1.1 Primary Research Data - We have conducted questionnaire at Modern Trade,

Schools, Tuition Cafeteria and Universities. Observed following information from

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executives, youth, students, house wives of urban and rural areas and conducted focus

group discussion. Questionnaire format as follows:

Table 4: Questionnaire Format

Questionnaire about Toiletry Soap

We, the students of University of Kelaniya Marketing Management Centre, are conducting a Marketing Research on launching a new Toiletry soap for the study purpose only.

Identification of Customer

Name :

Gender:       Male       Female

Date of Birth:      

Age Group: 15-20

21-25

26-30

31-35

36-40

41-45

46-50

50 & Above

Educational Qualification: GCE O/L

GCE A/L

Diploma

Degree

Post-graduation

MBA

Other, Please Specify……………………………………….

Profession: Student

Employed

Un-employed

Self Employed

Please select the Monthly Salary / Income Range:

Below 10,000

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11,000 to 20,000

21,000 to 30,000

31,000 to 40,000

41,000 to 50,000

51,000 above

Family Members:

Bachelor / Spinster

2 to 3

4 to 5

6 above

Questionnaire to Customer about Product

1. What form of bath soap that you use?

Tablet

Liquid Soap

Tablet and Liquid Soap

Other, please specify……………………………………………….

P.S:- If you select Liquid soap above please do not answer remaining questions.

2. What are the brands of soap, you are aware of?

Lux

Dettol

Rexona

Rani

Kohamba

Lifebuoy

Dove

Venivel

Velvet

Pears

Baby Cheramy

Vendol

Others, Please specify……………………………………………..

3. Usage:

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Products Current Use Previous UseHave you ever used

before

Have you considered to

use

Lux

Dettol

Rexona

Rani

Kohamba

Lifebuoy

Dove

Venivel

Velvet

Pears

Baby Cheramy

Vendol

Other………………………

4. What made you to use above selected Brands?

Price

Value for money

Brand value

Celebrity Endorsement

Relative / Friend Reference

Discount on single unit purchase

Discount on Bulk purchase

Special branded offers

Easy Availability

Foam

Non Animal fat

Ingredients

No Side Effect

Aroma / Fragrance

Colour

Packaging

Skin care

Reliability of the product

Durability

Effects on Anti-Bacterial / Germ Killing

Shape of the soap

Other…………………………………………………

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5. How long have been using the Brand that you mentioned above?

Years Months

6. What is your top of the mind brand in the soap cube category?

7. How many bath soap do you purchase for your household every month?

1

2

3

4

5 or above, please specify……………………………..

8. How many times you’re using bath soap in a day?

Once

Twice

More than two times

9. What is the frequency of purchase?

I. Weekly

II. Once in two weeks

III. Monthly

IV. Once in 3 months

V. More

………………………………

10. What is the weight of the presently use bath soap?

Small Medium Large

11. What are the sources that you get information about your soap?

TV

Relative’s or Friend’s Reference

Newspaper

Shopkeeper’s Reference

Magazines / Posters

Other…………………………………………..

12. If you have decided to switch to another brand what are the additional benefits that you expect?

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Price

Value for money

Brand value

Celebrity Endorsement

Relative / Friends Reference

Discount on single unit purchase

Discount on Bulk purchase

Special branding offer

Easy Availability

Foam

Non Animal fat

Ingredients

No Side Effect

Aroma / Fragrance

Colour

Packaging

Skin care

Reliability of the product

Durability

Effects on Anti-Bacterial / Germs Killing

Shape of the soap

Other…………………………………………………

13. If we are to introduce new bath soap what are the benefits you considered?

- Please Rank -

Strongly Disagree Disagree Neutral Agree Strongly

AgreePackingPrice

Aroma / Fragrance

Shape FormTransparentMilkyColourHygiene / Herbal valuesValue for moneyBrand valueCelebrity

Endorsement

Relative / Friends

Reference

Discount on

single unit

purchase

25

Special brand

offer

Easy Availability

Non Animal fat

Ingredients

No Side Effect

Skin care

Strongly Disagree Disagree Neutral Agree Strongly

AgreeReliability of the

product

Durability

Effects on Anti-

Bacterial

Discount on Bulk

purchase

14. If we are to introduce new bath soap what is your affordable price? LKR

15. If we are to introduce new bath soap what are the media methods you preferred?

TV

Channels Rupavahini ITN Sirasa TV Swarnavahini Hiru TV Shakthi TV CSN TNL Varnam TV MTV

Other, Please specify

Time

NewspaperSpecify the Newspaper

RadioWhich Station

Social MediaPlease Specify

MagazinePlease Specify

OtherPlease Specify

16. Where do you normally purchase your soap?

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…………………………………………………………..

17. What is your preferred colour of the soap?

18. Which celebrity that you recommended for brand ambassador for a soap product?

19. Recommendation and Suggestions:

4.1.2 Secondary Research Data – We have gathered information from competitor

annual reports, sensors and statistics from state sources.

Sources: Survey Department, Registrar General’s Department, Department of Immigration & Emigration

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………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

Other, Please specifyDirect Marketing Ex - Oriflame

Retail ShopSuper Market

28

29

30

Finding as follows: As per the Questionnaire we prepared following chart. 31

Chart 1 - Current Soap Usage

4.2 Idea Screening

According to the research we have found that major factor for purchasing decision is as

follows;

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Customer Expectation Current Soap BenefitPrice 194Aroma / Fragrance 168No Side Effect 168Skin care 164Easy Availability 160Effects on Anti-Bacterial 157Hygiene / Herbal values 150Packing 142Ingredients 139Value for money 139Shape 134Non Animal fat 133Color 131Durability 130Brand value 126Discount on Bulk purchase 122Milky 122Reliability of the product 120Form 119Discount on single unit purchase 105Relative / Friends Reference 92Transparent 79Celebrity Endorsement 59Special brand offer 44

Our total research sample – 285 their preference from a soap. We have chosen the

highlighted main ideas to consideration.

4.3 Concept Development and testing

We have developed different concepts using selected new ideas according to the research.

Concept 1 – Soap with competitive price.

Concept 2 – Soap with Herbal Value and anti-bacterial value.

Concept 3 – Skin care and no side effect.

4.4 Marketing Strategies Development

Strategy

The strategy is the driving force of the plan. As Forma soap holds a unique selling

proposition (Natural being Auyrvedic) compared to its competitors, which is to become a

hygienically nourished toiletry soap. It is vital to develop a strategy that demonstrates the

USP of the company and attracts the correct target market in a sustainable manner. The

company uses a strategy that is developed to bring light to the uniqueness of its product

and service. The following sections discusses the segmentation, targeting positioning of

the brand, branding strategy and the overall business strategy for this new venture.

Enhance brand image of the Forma Soap

To give a fully-fledged herbal experience soap for Sri Lankan youth

4.4.1 Segmentation Profile

Based on MASDA (Measurable / Accessible / Substantial / Differentiable / Actionable)

factors we have divided the toiletry soap market into following segments and developed

the segmentation profile. As mentioned below the market can be segmented in to multiple

categories based on demographic, psychographic and geographic characteristics;

Table 5: Segmentation Profile

33

Seg

men

t

Age

(yea

rs)

Ed

uca

tion

Gen

der

Occ

up

atio

n

Inco

me

Lif

e st

yle

Att

itu

de

Ben

efit

exp

ecte

d

Usa

ge r

ate

S 1 16-

20

Adult

School

Segment

Female

Males

Unemploy

ed

Dependen

t

Busy

Socialized

Sporty

Very

Favorabl

e

Protect

the

Skin &

Beauty

Regula

r use

20-

30

Higher

Education

al

segments

Female

Males

Profession

als, Junior

and Senior

Executives

Low Busy

Outgoing

Socialized

Very

Favorabl

e

Protect

the

Skin &

Beauty

Regula

r use

S 2 25-

50

Year

s

General

Education

Female

Males

Housewive

s or

Families

Health

Conscious

Males

Low

Average

Family

Responsibil

ity

Busy, Hard

working

Favorabl

e

Favorabl

e

Protect

the

Skin &

Beauty

Daily

use

S 3

18-

45

Young

Executive

s

Female Young

executives

Average

and High

Busy Life

style

Sporty

Relax

Social

Neutral

Protect

the

skin

Daily

Use

0

34

4.4.2 Market Targeting

Multiple Segmentation method has been used because it’s our products are Mass market

product. Multiple Segmentation is selected to a subset of all the possible segments, each

are objectively attractive and appropriate with advantage of diversifying the firm’s risk.

All manufactures of soap produce containing Herbal Value and anti-bacterial value, Skin

care and no side effect and value for money.

We have targeted the market in seven segments as we mentioned as follows:

School Students

Young Executives

Professional Sportsmen

Academic Students

4.4.3 The Target Market

After developing the segmentation profile we can select the Target Market by developing

new products and benefits strategies. Target Market will be all toiletry soap consumers

those who expect herbal, skin care and anti-bacterial value.

4.4.4 Market Positioning

Establishing the brand positioning in the marketplace requires that consumers understand

what the brand offers and what makes it a superior competitive choice. To do so,

consumers need to understand in which category it competes and point-of-parity and

point-of-difference with respect to those competitors. We are positioning our new product

benefit and values in customer mind to fulfill to their unmet needs by using Convenience

and Varieties of ingredients. We are chosen the point of Difference (POD) to make up our

brand positioning.

Positioning is the process of designing an image and value so that customers within the

target segment understand what the company or brand stands for in relation to its

competitors. Product characteristic based on positioning can be used in capturing the

mindset of the target market with a uniform message. Form soap is enriching with

School segment, high education segment and young executives which delivers a

hygienically nourished soap to customers.

Identify Possible Competitive Advantage

Pioneers of hygienically nourished toiletry soap makers in Sri Lanka

Unique Selling Proposition - Produced using indigenous herbal ingredients.

35

4.4.4 Brand Positioning Statement

Forma soap is to provide hygienically nourished toiletry soap to young females to

protect their skin against dust and germs.

Positioning Map – Point-of-difference

Chart 1 - POD

Positioning Map – Point-of-parity

Chart 2 - POP

36

Anti-bacterial Value Forma

Skin Care

Hygienically Nourished

Lifebuoy Forma

Venivel Velvet Lux

Rani KohombaPears Cheramy

Value for Money

5 .0 Managing marketing mix

Marketing mix is the set of tools use by marketers to creating values to satisfy customers.

After selecting the target market we should understand the marketing process for our new

product launch to the target market as follows:

Identifying needs and wants

Manufacturing process

Branding

Packaging

Distribution

Promotion

Feed back

Anything that can be offered to a target market for attention, acquisition, use or

consumption that might satisfy a need or want is a product within the marketing mix. We

are mainly focus for satisfy our customers to provide with skin care, Herbal Value and

anti-bacterial value.

5.1 Managing Product Mix – Usage of 4 P’s

5.1.1 Product

Form - Tablet version

Colour - White and Green

Packaging - Attractive packing

Shape – Square

Weight per unit -70 grams

Packaging - 70 grams * 144 units per case

Product Ingredients:

Coconut Oil: it nourishes, moisturizes and lightens your skin tan.

Kohomba: Germ Protection, maintain the body heat.

Aloevera: Nourishes, Moisturizes and keep the skin fresh.

Wild Ginger: soothes the skin and helps prevent infections and rashes.

Lime Peel Oil: for a refreshing cooling effect and rich, penetrating lather with an

astringent action.

37

Hydnocarpus Oil: helps prevent skin problems, rashes and outbreaks.

Orange Oil: tightens pores, helps prevent pimples and blackheads.

Sandalwood Oil: destroy pore blocking bacteria, decrease Melanin and refresh and

gently perfume your skin.

Turmeric: has been found to cut the skin's melanin production. It also helps

suntanned skin return to its normal shade faster by whitening the skin especially

after fitness work outs.

Saffron – Germ Protection.

Forma Clear and Forma Herbal

Based on the Questionnaire we have chosen the product color. 5.1.2 Branding

A brand is the idea or image of a specific product or service that consumers connect with,

by identifying the name, logo, slogan, or design of the company who owns the idea or

image. Branding is when that idea or image is marketed so that it is recognizable by more

and more people, and identified with a certain service or product when there are many

other companies offering the same service or product. Branding not only to build brand

recognition, but also to build good reputations and a set of standards to which the

company should strive to maintain or surpass. Branding is an important part of Internet

commerce, as branding allows companies to build their reputations as well as expand

beyond the original product and service, and add to the revenue generated by the original

brand.

38

Branding is also a way to build an important company asset, which is a good reputation.

Whether a company has no reputation, or a less than stellar reputation, branding can help

change that. Branding can build an expectation about the company services or products,

and can encourage the company to maintain that expectation, or exceed them, bringing

better products and services to the market place.

http://socialmediatoday.com/pamdyer/1711991/importance-brand-recommendations-

your-marketing-strategy

5.1.3 Brand Name, Logo, Pack and Packaging and Brand Ambassador

Brand Name: “Forma Soap”

A principal component of branding is the selection of a brand name. Commonly used

definition of a brand name is that it is the component of a brand, which can be spoken or

verbalized. It can contain words, numbers or letters. Most introductory marketing

textbooks recognize that a good brand name should also have several properties. A short

crisp brand name is usually preferred over longer more complex names. It should suggest

benefits or qualities associated with the product. Good brand name should be easy to

spell, pronounce and remember. It also should be distinctive and free of any negative

connotation. Company has decided introduce a individual brand name.

https://www.google.lk/#psj=1&q=brand+name+strategies

Logo

39

Logos are the foundational element of a company’s branding strategy. Logos is a critical

aspect of business marketing. As the company's major graphical representation, a logo

anchors a company's brand and becomes the single most visible manifestation of the

company within the target market. For this reason, a well-designed logo is an essential

part of any company's overall marketing strategy.

Pack and Packaging

12uints in a shrink wrapped for general trade, retail and modern trade

144 units in a carton for distribution and wholesale

125Gsm Hard Board used for packaging

The purpose of product packaging is to protect the product from damage. Product

packaging not only protects the product during transit from the manufacturer to the

retailer, but it also prevents damage while the product sits on retail shelves. Most products

have some form of packaging.

Benefits of Packaging

Attraction

How a product is packaged may be what attracts the consumer to take a look on the

product as is sits on store shelves. For this reason, many companies conduct extensive

research on color schemes, designs and types of product packaging that is the most

appealing to its intended consumer. According to the consumers feedback at the testing

stage company decided to choose the packaging color.

Promotion

40

Packaging also plays an important role for portraying information about the product.

Outside packaging may contain directions on how to use the product or make the product.

Facilitates Purchase Decision

Packaging may also contain ingredients and nutritional information about the product.

This information can help to sell the product because it allows potential customers to

obtain the necessary information they need to make a purchase decision. Information

contained on a package may propel the reader to buy the product without ever having to

speak to a store clerk.

Differentiation

Packaging can also differentiate one brand of product from another brand. Because the

product packaging can contain company names, logos and the color scheme of the

company, it helps consumers to identify the product as it sits among the competition’s

products on store shelves. For example, as a shopper walks through the coffee aisle of the

local grocery store, the bright orange, pink and white packaging of the Dunkin’ Donuts

coffee brand may be easily recognizable for the consumer to grab on his way by the

coffee shelf. The shopper may identify with the company brand, which propels them to

buy the product. If the product packaging changes, it may alter the brand perception of

the company, which doesn’t mean that the consumer would not still purchase the product,

but it may delay the purchase until the person is able to identify the product according to

its new packaging.

Brand Ambassador: Miss.Jacqueline Fernandez

41

A Brand Ambassador is someone who, at the most basic level, represents a brand in a

positive way.  It is the duty of a Brand Ambassador to express the message of a

company to consumers or people who would gain something from learning about the

brand being advertised.

Capable Brand Ambassador should be the walking and talking embodiment of the

product that they are representing.  He / she should be well trained and able to answer

almost any question that a prospective consumer might have for them. In theory, a

Brand Ambassador should understand a product as well as the person who created it

or the person that owns the company.  A Brand Ambassador should be extremely

friendly and outgoing, and should always show a desire to perform and get the name

of the product out to the general public.

Company decided to appoint Miss. Jacqueline Fernandez as an ambassador

because she is a popular character. At the testing stage most of the target market

crowd like her. Based on the Questionnaire.

42

Brand slogan - “Not just a soap Trusted skin and beauty protection”

A branding slogan is a small set of words or a short phrase that a business uses to

make its company and products stick in consumers’ memories. An effective branding

slogan not only sticks in a customer’s mind, but also invokes a mood and creates a

bond with the consumer. Branding slogans are used in both advertising and

promotional materials used by a business.

Slogans can be funny, sweet, romantic or even sarcastic if it is done right. Think of

four to five key words that describe the business, product and the companies’ attitude.

Brand Characteristic

Personality – Soft and Protective

Benefit – Anti Bacterial, Skin Care

Attributes – Aroma fragrance, Colour association

Value – Herbal value and Generic soap

Culture - Local and heritage

User – Families , Youth, Students, Sporty youth, Young executives

http://smallbusiness.chron.com/importance-product-packaging-marketing-648.html

5.1.4 Price

Based on the information we have decided the price.

43

Forma Soap is a new product to the market and Lakgrow (Pvt) Ltd decided to fix the

price in line with the competitor price and customer requirement as per the research.

Table 6 – Product Mix: Price

Product Pricing Method MRP LKR

Forma Clear Perceived 48.00

Forma Herbal Perceived 48.00

5.1.5 Place

Distribution – we are planned to distribute VIA modern trade (Super markets) and

Traditional / general Trade.

Intensive distribution method is been chosen as we concentrate on mass market product.

Table 7 – Product Mix: Place

Product range

Mod

ern

T

rad

e

Traditional TradeSmall Scale

Medium Scale

Large Scale

Forma Clear Yes Yes Yes Yes

Forma Herbal Yes Yes Yes Yes

We have planned to get 68% revenue from the traditional trade and the balance 30% from

the modern Trade and 2% from Online. 44

5.1.6 Promotion Mix

Promotion is the method that uses to spread the word about the product or service to

customers, stakeholders and the broader public.

Promotions are essentially the alarm that the sound to let customers know the existence of

the product and why they should care. Without the use of promotions any fabulous

products and services can't garner the interest of preoccupied and on-the-move customers.

Initially, advertising, public relations, social media, personal selling and other forms of

communication are used to create awareness about brands and products. Subsequent goals

include gaining marketing share, getting customers to buy and growing revenue. The

media you select and the messages you formulate are keys in building effective

promotional strategies that achieve these communication goals.

According to the target market company plans to use all possible promotional mix to

communicate the product to the target audience.

http://www.marketingteacher.com/lesson-store/lesson-sales-promotion.html

5.1.4.1 Advertisement

45

Advertising is a form of communication designed to persuade potential customers to

choose the product or service over that of a competitor. Successful advertising involves

making your products or services positively known by that section of the public most

likely to purchase them. It should be a planned, consistent activity that keeps the name of

the business and the benefits of your products or services uppermost in the mind of the

consumer. Therefore company planned to have an awareness campaign through following

Medias using ATL, BTL, and TTL Methods

Pack, Packaging and Ingredients –

Forma Clear and Forma Herbal

Awareness and Attention campaign –

Before launching the product poster campaign and using sandwich boys near

schools and offices and hoardings.46

“Not Just a Soap Trusted Skin & Beauty Protection”

5.1.4.3 ATL Promotions

TV Advertisement in all 3 languages.

Advertisement is created to make customers to search about the product and indirectly

describe the uniqueness of the product.

“Not Just a Soap Trusted Skin & Beauty Protection”

Brand Ambassador: Miss. Jacqueline Fernandez

Segments Sirasa TV / Hiru TV Shakthi TV MTV / CSN

Families In Between 7:00 pm to

9:00 pm Tele Drama

Series

In Between 10:00 am to

12:00 Noon Tele Drama

Series

After and Before

Cookery Programs

Students Weekdays 4:00 pm to

6:00 pm In between

Cartoon Time

Weekdays 4:00 pm to

6:00 pm In between

Cartoon Time

After and Before

Educational Programs

Professionals During Movies & after 6

pm to 10 pm

During Movies & after 6

pm to 10 pm

During Movies & after

6 pm to 10 pm

Young

Executives

After Before Share

Market Program And

During Movies

After Before Business

Programs And Movies

After Before Business

Programs And Movies

Sports Men During sports program During sports program During matches and

CSN Channel only on

Cricket Tournaments

47

After the launch of the product company will telecast the product demonstration in TV

channels covering all languages during Educational Programs, Cookery time, Sports and

Tea Time Programs.

Newspaper Advertisement in all 3 languages.

Advertisement is created to make customers to search about the product and indirectly

describe the uniqueness of the product.

Segments Weekend

Newspapers

Ladies news papers

Weekly and

monthly

Students News

Papers Weekly And

Monthly

Families Women page

(Lanka Deepa,

Sunday Observer,

Thinakaran)

Women Page

(Birida, Nawaliya,

Kalkandu, Mum and

Me, Ammi)

Leading Educational

Newspapers

Students Children page

Education Page

Sports Page

Cookery Page Hapana, Sathara,

Leading Students

Newspapers

Professionals Business page,

Fashion Page

Related article page Related article page

Young

executives

Business page and

Classified

48

Sports men Weekend Sports

Radio

Advertisement is created to make customers to search about the product and

indirectly describe the uniqueness of the product.

- Morning news time, Breakfast time 7am to 10am

- Lunch time 12 Noon to 2 pm

- Targeting professional on drive time and after office time

49

5.1.4.4 BTL Promotions

Coming Soon Poster Campaign in the School Canteens and Target Segment’s

Areas All Island in Same Day

Leaflet distribution near schools, tuitions, Institutes, Free Trade Zone and

Factories.

Branded Hoardings

School Van and Office staff transport branding

Branded Document file for students

Branded Mobile phone pouches

Branded cosmetic pouch

Branded Soap cases

After the product launch at introduction stage customer search about the product, product

information therefore company will redesigned the advertisement of above Medias

expressing functional, emotional moral befits of the product with sufficient information

about the product.

Through these advertisements at this stage company expects to catch early adaptors and

try to gradually change the attitude of consumers from powder based product to cube base

and make them attention, interest towards the product, desire to purchase the product.

School service bus branding in order students link with the brand

place a shelf in modern trade and POS displays to increase the impulse buying

50

write good practice quote at the entrance of the school

place gondolas in modern trade

paste branded sticker in the buses and trains make aware of skin care

Train branding to associate the brand with customers

Display X pannets, Wobblers, Danglers, Display gondolas, product display

independent unit in impulse counter. POSM

Event and experience

Company plan to organize a provincial Netball and Hockey tournament school

wise where company propaganda to associate the brand with students.

Sponsorship for school sports meet placing company product banner and displays

Town wise demonstration program using propaganda vehicle to change customer

attitude toward new soap

Product demonstration in selected modern trades

Teen and youth Music shows, talent shows and concerts arrangement and

sponsorships to familiar youth with the brand

Valentine’s day celebration

Friendship day celebration

Workers day celebration

5.1.4.5 TTL Promotions

Maintaining a web site and promote the brand and online purchasing cart

Social media advertising – Face Book Fan Page, Email competitions among users.

Email campaign to existing data base

Agreements with leading online business sites, Anything.lk, Keells.lk, etc…

through promote and do awareness campaigns.

51

Google Banner Ad’s only in Sri Lanka Users.

Maintain a Blog and publishing the articles of leading Doctors and Sportsmen

comments about the Forma Soap

Bulk SMS campaigns

SMS Promotions

Sales Promotion

Sales promotion is any initiative undertaken by an organization to promote an increase in

sales, usage or trial of a product or service. Company planned to implement this

promotion during the age of maturity of the product to survive in the market until product

repositioned using pull and push strategy.

Pull strategy

Customer Relationship Management (CRM) offer incentives such as bonus points

or money off coupons from modern trade by observing loyal customers and their

purchasing behavior of the product.

Merchandising additions such as dump bins, point-of-sale materials and product

demonstrations.

Discounted prices – Time to time introduce new discounted prices compare to

competitor price

Competitions and prize draws ( those who carry more no of product package will

be offered a free soap)

Joint promotions linked with modern trade (more units purchased from a modern

trade will eligible for a prize)

Push Strategy

Discount for bulk purchases for modern trade and other sales out lets( buy 24 units

and get 1 pack free)

Special incentive scheme for sales staffs

Regional wise foreign tour for highest sales distributor

52

Motivational and skill development program for distributor staff

CSR Activities

Donate Rs.0.50 cents from each soap sale to needy students education in order to

build the relationship of Youth with the brand

environment friendly packaging

No child labors

sponsorship for sports equipment for rural area sports clubs to build good image

of the brand among sportsmen

eco-friendly factory environment

Not tested on animals

Action Plan

Jan-15

Feb-15

Mar-15

Apr-15

May-15

Jun-15

Jul-15

Aug-15

Sep-15

Oct-15

Nov-15

Dec-15

Jan-16

Feb-16

Mar-16

Budget (Millions)

Distribution

Appointing Distribuor

                        10% margin

Prodct Listing for

53

Modern Trade

Sandwich Boys

    XXX

                        300,000.00

Awareness Campaign for Opinion Leaders

XXX

XXX

XXX

                        100,000.00

Requirtment of sales Staff

XXX

XXX

                          100,000.00

Training of Sales Staff

    XXX

                        200,000.00

Selection and Appointing AD Agencies

XXX

XXX

XXX

                        25,000.00

Selection and Confirmation Brand Ambassador

XXX

                            500,000.00

Signing MOU with Brand Ambassador

  XXX

                          25,000.00

ATL - Campaigns: TV

                               

Sirasa TV

      XXX

XXX

XXX

      XXX

XXX

XXX

      1,000,000.00

Hiru TV       XXX

XXX

XXX

      XXX

XXX

XXX

      1,000,000.00

Shakthi TV

      XXX

XXX

XXX

      XXX

XXX

XXX

      1,000,000.00

MTV       X X X       X X X      

54

XX

XX

XX

XX

XX

XX

500,000.00

CSN       XXX

XXX

XXX

      XXX

XXX

XXX

      500,000.00

ATL - Campaigns: Newspaper

                               

Sunday Times

      XXX

XXX

XXX

      XXX

XXX

XXX

      500,000.00

Sathara       XXX

XXX

XXX

      XXX

XXX

XXX

      100,000.00

Lanka Deepa

      XXX

XXX

XXX

      XXX

XXX

XXX

      500,000.00

Thinakaran

      XXX

XXX

XXX

      XXX

XXX

XXX

      400,000.00

Kreeda       XXX

XXX

XXX

      XXX

XXX

XXX

      100,000.00

ATL - Campaigns: Radio

                               

HiruFM       XXX

XXX

XXX

      XXX

XXX

XXX

      200,000.00

Y FM       XXX

XXX

XXX

      XXX

XXX

XXX

      200,000.00

Sirasa FM

      XXX

XXX

XXX

      XXX

XXX

XXX

      200,000.00

Shakthi FM

      XXX

XXX

XXX

      XXX

XXX

XXX

      200,000.00

Suriyan FM

      XX

XX

XX

      XX

XX

XX

      200,

55

X X X X X X 000.00

Sun FM       XXX

XXX

XXX

      XXX

XXX

XXX

      200,000.00

Yes FM       XXX

XXX

XXX

      XXX

XXX

XXX

      200,000.00

BTL - Campaigns:

                               

Poster       XXX

    XXX

    XXX

          150,000.00

Leaflet                               50,000.00

Hoardings

                              750,000.00

Vehicle Branding

      XXX

                      500,000.00

Branded Document Files

        XXX

XXX

                  150,000.00

Branded Cosmetic Pouch

      XXX

XXX

XXX

                  150,000.00

Branded Soap Cases

      XXX

XXX

XXX

                  100,000.00

POSM in Key Accounts

                               

X Pannets

      XXX

    XXX

    XXX

    XXX

    75,000.00

Wobblers

      XXX

    XXX

    XXX

    XXX

    25,000.00

Danglers       X     X     X     X     56

XX

XX

XX

XX

25,000.00

Gondolas

      XXX

    XXX

    XXX

    XXX

    500,000.00

Stickers       XXX

    XXX

    XXX

    XXX

    25,000.00

Sponseships

                              1,000,000.00

Sales Promotion - Push

        XXX

                    2,000,000.00

Sales Promotion - Pull

            XXX

                2,000,000.00

Personal Selling

      XXX

  XXX

  XXX

  XXX

  XXX

      300,000.00

Total Budget

                              16,050,000.00

4.0 Product Life Cycle Stages

57

Product Life Cycle Stages

The product life cycle has 4 very clearly defined stages, each with its own characteristics

that mean different things for business that are trying to manage the life cycle of their

particular products.

Introduction Stage – This stage of the cycle could be the most expensive for a company

launching a new product. The size of the market for the product is small, which means

sales are low, although they will be increasing. On the other hand, the cost of things like

research and development, consumer testing, and the marketing needed to launch the

product can be very high, especially if it’s a competitive sector.

In this stage as companies’ promotion company will redesigned the advertisement of

above Medias expressing functional, emotional moral befits of the product with sufficient

information about the product.

Through these advertisements at this stage company expects to catch early adaptors and

try to gradually change the attitude of consumers from powder based product to cube base

and make them attention, interest towards the product, desire to purchase the product.

Growth Stage – The growth stage is typically characterized by a strong growth in sales

and profits, and because the company can start to benefit from economies of scale in

production, the profit margins, as well as the overall amount of profit, will increase. This

makes it possible for businesses to invest more money in the promotional activity to

maximize the potential of this growth stage.

At this stage Company continues the advertisement and promotional campaign until

brand image positioned among target segment.

Maturity Stage – During the maturity stage, the product is established and the aim for

the manufacturer is now to maintain the market share they have built up. This is probably

the most competitive time for most products and businesses need to invest wisely in any

marketing they undertake. They also need to consider any product modifications or

improvements to the production process which might give them a competitive advantage.

58

During this stage company plan to reduce the promotion activities gradually and company

carry on the reminding advertisement time to time and maintain the sales.

Decline Stage – Eventually, the market for a product will start to shrink, and this is

what’s known as the decline stage. This shrinkage could be due to the market becoming

saturated (i.e. all the customers who will buy the product have already purchased it), or

because the consumers are switching to a different type of product. While this decline

may be inevitable, it may still be possible for companies to make some profit by

switching to less-expensive production methods and cheaper markets.

At this stage company planned to have aggressing selling promotion and reposition the

product

https://www.google.lk/?gws_rd=cr&ei=T8xWUoCTBImNrQejxYDoCA#q=sales+proces

7.0PRODUCT LAUNCH

8.1Press Release Programme / Press KIT for Forma Soap

Introduction to the company

“Lakgrow (Pvt) Ltd” is a fast moving consumer goods manufacturing company produces

toiletry soap, detergent powder ,shampoo and hair oil brands has decide to develop a new

toiletry soap brand targeting young females those who are exposed to happening life

59

styles like sporty working crowed high education like adult, school segment and the high

educational segment. The company is one of the market leaders in Sri Lanka for hair oil

and shampoo products. We have obtained ISO 9001 and SLS certification for the

production and quality management of our products. Lakgrow (Pvt) Ltd won the SLIM –

Nielson Peoples Brand of the year 2013 under the category of “Personal Care Brand of

the Year”. They need to have hygienically nourished soap solution to protect their skin

usually being exposed to dust environment while satisfying core of beauty as well.

“Lakgrow (Pvt) Ltd” established in 1985 and 90% home grown / local organization with

International recognized standard and serving to the nation with wide range of products.

After meeting the entire legal requirement and completing all the ground work and we are

willing to launch the Forma Soap to the market in 1st January 2015.

Product Name – “Forma” “’Logo’’ Trade Mark

Products

Forma Clear and Forma Herbal

Expected Market Share

20% of Soap market by 2015 and followed up with an annual market growth rate of 6%.

Details about Certifications, Awards and Standards for existing product

60

ISO 22000:2005 Safety management system (SMS)

HACCP - Hazard analysis for Critical control Point

ISO 14000 - 2004 Environmental Management system (EMS)

We have applied for SLS

Health Ministry Approval

Ayurveda Approval

Brand Ambassador

We have chosen Miss. Jacqueline Fernandez as the brand ambassador

Product Ingredients and Its Speciality:

Coconut Oil: it nourishes, moisturizes and lightens your skin tan.

Wild Ginger: soothes the skin and helps prevent infections and rashes.

Lime Peel Oil: for a refreshing cooling effect and rich, penetrating lather with an

astringent action.

Hydnocarpus Oil: helps prevent skin problems, rashes and outbreaks.

Orange Oil: tightens pores, helps prevent pimples and blackheads.

Sandalwood Oil: destroy pore blocking bacteria, decrease Melanin and refresh and

gently perfume your skin.

Turmeric: has been found to cut the skin's melanin production. It also helps

suntanned skin return to its normal shade faster by whitening the skin especially

after fitness work outs. .

Target Market

This is a mass Market product. We shall target Families, School Students, Young

Executives, Professional Sportsmen, Hard Work Labors and Academic Students.

Advertisements copies, Brochures, leaflets and etc.

Awareness Campaigns and Newspaper Advertisement in all 3 languages.

Distributer base

Available in all supermarkets and groceries.

CSR programs

61

I. Educational programs for schools children on food nutrition’s

II. Donate Rs: 0.50 cents from each pack sale to needy children’s studies in rural

areas

III. Blood donation campaigns

IV. Environment friendly packaging

Sponsorships

Sponsorship for sports equipment for rural area sports clubs to build good image

of the brand among sportsmen

9.0 TIME PLANE FOR THE NEW PRODUCT LAUNCH

9.1 Pre-Launch Time Plan

Table 15 – Pre Launch Time Plan

Product Development Activities Time Period

Idea generation During the month of January 2014

Idea screening During the month of May 2014

Concept development & testing 2 months’ time ( June & July)2014

Marketing Strategic plan 2 months’ time (August & September)2014

Market testing First week of October 2014

Pre awareness activities November 2014

Product distribution January 2015 to March end 2015

Product launch 1st of April 2015

9.2 Post Launch Time Plan – Refer the Action Plan

10.0 ANNUAL SALES PLAN

Table 17 – Annual Sales Plan 2015

Annual Sales Plan 2015

Forma Soap

Selling

Price

LKR

Total No.

of Units

Total Revenue

LKR

62

Forma Clear 48.00 5,000,000 240,000,000.00

Forma Herbal 48.00 5,000,000 240,000,000.00

TOTAL 480,000,000.00

3% Spent for Advertising, Promotion and Distribution on Total

Expected Revenue.

10.1 Annual Sales Plan Unitized Wise

Table 18 – Annual Sales Plan Unitized Wise

Annual Sales Unitized Wise - 2014

Forma SoapTotal No.

of Units

Traditional

Trade

Modern

Trade TTL

Forma Clear 5,000,000 3,500,000 1,400,000 100,000

Forma Herbal 5,000,000 3,500,000 1,400,000 100,000

TOTAL 10,000,000 7,000,000 2,800,000 200,000

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