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SUPERIORCUSTOMERVALUETHROUGHMARKETINGMIXofKHOMBA(SWADESHIPLC)
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Superiorcustomervaluethroughmarketingmix(pcm,slim)
1.1.1SUPERIORCUSTOMERVALUETHROUGHMARKETINGMIXPreparedByA.M.Azhar
PCMIV/2012/COL0200SlimHomeColombo2012/December/01PreliminaryCertificateinMarketing
SRILANKAINSTITUTEOFMARKETING
2.2.2TableofContents1.Executivesummary12.Introduction23.Methodology34.Task145.
Task266.Task3107.Task4138.Conclusion159.Recommendations1610.References17
3.3.3ExecutiveSummaryTheassignmentwasdonetoreviewthemarketingoperationsandsuggest
suitablerecommendationstosoapyproductioninSRILANKA.LUX,LIFEBUOYandVELVETare
mostlyfulfilledthesoapydemandinSRILANKA.Though,someproductsarepurchasedbecausetheir
customersdosooutofhabit,outoftrustbuiltoveralongperiodoftime.Thegovernmenthasnocontrol
overabovefacts.Thisfactsareproofingtherequirementoftheownsoapproductionincountry.The
currentresearchandexperimentsindictedthepotentialofsoapproduction.Productswerebrandedas
KHOMBA.Thisassignmentonlycoversthesoapyproducts.TheKHOMBAisavailableatthemarket
undertheSWADESHIPLCasavalueaddedbrand.Theseveralbrandingstrategiesandbrandtoolsare
usedtomarkettheKHOMBAinthemarket.Brandingthesoapisnotenoughtocatchthemarket.
Therefore,theproductshouldcommunicatewithcustomersinappropriatemethod.Theseveralmethods
suchasadvertising,directmarketing,promotionalcampaignsareusedtocommunicate.KHOMBAshould
delivertheproductatthecorrecttimeatcorrectpoint.Itrequiresthewellestablisheddistributionchannel
allovertheSRILANKAincludeeasternandNorthernProvince.Further,anycompanycannotrun
withoutprofit.Therefore,KHOMBAshouldconcernthecashbudget.
4.4.4IntroductionAssignmentTherearemanyproductsinthemarkettoday,manyoptions,andmanyareas
foraconsumertodecideonbeforemakingapurchase.Someproductsarepurchasedbecausetheir
customersdosooutofhabit,outoftrustbuiltoveralongperiodoftime,outofrecommendationsby
otherusers/customers/consumersandsoon.Thisstudywilllookdeeperintoaparticularproductchosen
andelaborateonvariousviews,SuggestionsandrecommendationsfortheproductYouworkfora
companydealinginFMCGproducts,consideringbuyingoveraleadingLOCALbrandoffacialsoap,
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assumingitisupforsale.Yoursuggestionsforthetasksgivenshouldbebasedonclearargumentsand
decisionsusingrelevantMarketingtoolsstudied.TheyhavetobepresentedtotheDirectorsofthe
Company,givingsuggestionsandclearrecommendationsonwhytheyshouldtakeontheproduct/brand.
5.5.5MethodologyTogetthedepthknowledgeintheFMCGsectorthedeskresearchiscarriedout.For
thatlotofannualreportsandwebsitesarereferred.Thefinancialrecordsandstatementsarecollected
fromNewColomboTradersinEravur(DealerofSwadeshiCompanysProduct).Inordertocollectthe
informationMr.M.C.Thasleem(dealer)wasinterviewedandalso100numbersofpeoplewasinterviewed
fromdifferentareasofSriLanka.
6.6.6Task1Marketingmixisthesetofcontrollable,tacticalmarketingtoolsthatthefirmblendsto
producetheresponseitwantsinthetargetmarket.Themarketingmixconsistsofeverythingthefirmcan
dotoinfluencethedemandforitspro(Philipkotler12thedition)MarketingMixforKHOMBA
Marketingmixelementdescriptionuniquefeature/effectivenessPRODUCTBrandNameKHOMBA
Packaging70gramsx144unitspercaseQualityISO9001:2008CertifiedCompanySizes70
gramsServicesTwoserviceswillbecarriedoutfreeofchargeInLineWithTheNeedsOfItsTarget
CustomersTheonlyProductGroup:BeautySoapProductPlacement:aClearHerbalTransparentSoap
ActiveHerbalIngredients:Margosaoil(Azadirachtaindica)WeightPerunit:70gramsPacking:70
gramsx144unitspercaseSpecifications:L:340mmxW:250mmxH:277mmVolumePerCase:
0.02355M3CaseperFCL:20'FCL:1250cases40FCL:2500casesWeight:70gGrosswt:12.50
7.7.7PRICEListprice38/=RsPaymenttermfullcashCompetitiveAdvantageHighpricehighValue
PLACEChannelsConsistingofover1500sales,sparepartsandservicedealershipsKeyaccount13
salesoffices17regionaloffice.MixShouldBeWellBlendedHighavailabilityIntherightquantitiesIn
therightconditionWiththerightdegreeofadviceandaftersalesservicePROMOTIONSSales
promotionPublicrelationhelpingschools&hospitalfightingthedenguemenacedonatetobuild
healinghomeforwarheroesMixShouldBeWellBlendedPromotionisdoneinacarefullmannerwitha
strategicintenttomaintaincustomerrelationships.
8.8.8Task2IntroductionKHOMBAisthevalueaddednativesoap.Therefore,itwillmarketatsomewhat
highprice.KHOMBAwillcapturethe18.5percentageofthemarketshareinsoapwithinthenextquarter
yearinSRILANKA.Keyaudienceiswomen,menandchildren.KHOMBAhastocommunicatewith
thatkeyaudienceveryeffectiveandefficientmanner.Further,itisslightlynewproducttoextinctmarket.
Therefore,thecustomershaveuncertaintyandriskintheirmindduetothelackofinformation.Marketing
communicationisverymuchimportanttoinform,persuade,remindandalterthecustomermind.6.2)
SWOTAnalysisa)SWOTlisting Strengths:Acknowledgedmarketleader:Strengths Adequate
financialresources Productinnovationskills Acknowledgedmarketleader Advertising
effectiveness Aheadonexperiencecurve ISOcertifiedproductWeaknesses Insufficientexperience
Cannotsatisfythedemandatinitialstage Higherpricefor(KhombaClearTransparentSoap) No
halalcertifiedOpportunities GrowingFMCGmarketenvironmentinSRILANKA Fewcompetitors
Unsatisfieddemand Serveadditionalcustomers Enternewmarketsegment Diversifyproducts
) Threats CompetitionfromexistinginternationalbrandsinthemarketLUX,LIFEBUOY,
VELVETandetc. Growingbargainpowerofcustomers&suppliers
9.9.9 StrengthsKHOMBAhasahighmarketshareandistheleaderofnaturalbeautyandgivesnatural
protectionsoapindustrywhichisitsbiggeststrength.AdvertisingEffectiveness:Theadvertising
campaignslaunchedbyKHOMBAhavebeenveryeffectiveandhavepositioneditwellinthemindsofits
consumers.Aheadonexperiencecurve:KHOMBAwasthefirstbrandofgoodqualityNaturalBeauty
soapthatwaslaunchedinSRILANKA. Weaknesses:Price&Sizes:TheweaknessofKHOMBAis
smallsizesrelativetoitscompetingproducts.A70gramsKHOMBAoriginalherbalcaresoapbaris
availableforRs.38whereasthe100gramssizebarofVELVETisavailableforRs.45and100gramssize
barofLOFEBOUYisavailableforRs.43.Halal:AnotherweaknessofKHOMBAisnohalalcertifiedto
itscompetingproductswhereastheVELVETiscertifiedashalal.
10.10.10 Opportunities:Serveadditionalcustomers:KHOMBAhasvariousopportunitiesforgrowthin
themarket,whichincludestheopportunityofservingadditionalcustomersthroughmarketpenetration.
KHOMBAcanincreaseitsmarketpenetrationbypromotingitsuseinhospitalsandsuchotherplaces
wherebeautysoapscanbeused.Enternewmarketsegment:KHOMBAalsohastheopportunityof
enteringanewmarketsegmentbyincreasingitsproductlinehorizontally.Itcanmodifyitsnaturescare
&naturesbeautysoapintoclearsoapwhichpromisesgermprotectionandcanenterintheantibacterial
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soapmarket.DiversityintoRelatedproducts:KHOMBAcanalsointroduceanewproductlineofliquid
cleanersandotherrelatedproductstoincreaseitsgrowth. Threats:Increasingcompetition:Thethreats
posedtoKHOMBAfromtheexternalenvironmentincludeincreasingcompetition.KHOMBAisfacing
increasingcompetitionfromotherantibacterialsoapbrandslikeLIFEBUOY,treatandDETTOL,beauty
soaplikeLUX,VELVETandetc.Lifebuoyhaslaunchedanaggressivepromotionalcampaignagainst
KHOMBAbythenameofLifebuoyGermbusterswhichisbasedonasimilarformatasKHOMBA
CLEARlaunchedbyKHOMBA.Antibacterialsoaps
11.11.11BeautysoapsGrowingbargainpowerofsuppliers&customerswiththeincreaseinthesupplyof
antibacterialsoapsandthebeautysoapsinthemarket,anotherthreatthatisposedtoKHOMBAisthe
growingbuyingpowerofitssuppliersandcustomers.
12.12.12Task3ProductAsanythingthatcantobeofferedtoamarketforattention,acquisition,useor
consumptionthatmightsatisfyawantorneed.(PhilipKotler12thedition)InternalEnvironment Staff
Relationships:SWADESHIPLCsstaffrelationshipscontrolofmanage,managementshouldbeto
create.Theyproducteachdivisionisdividedintosectionbasedonthemajorproductline. Corporate
Culture:SWADESHIPLCscultureisalengthyprocess,sincepeoplechangeslowly.Micro
environment Suppliers:supplierssupplytolinkproducttocustomer.Theyaskproductproblemsand
nosatisfactionsfromcustomerandsaythatcommendtoSWADESHIPLCsproducer/manufacture.
Suppliersgivetosatisfycustomers. Intermediaries:SWADESHIPLCsIntermediariestoensurethat
theirproductreachforfinalconsumer.Theysupplydirectlyandindirectly. Competition:SWADESHI
PLCsproduct(KhombaClear,oil,soap)completivewithLifebuoy,Dettol,Lus,Velvetandetc Publics:
SWADESHIPLCalsoincludesvariouspublics.Financialpublicsgivefunds.Governmentpublicsseeto
checkproductrulesandregulation.Generalpublicattitudetowardsitisproductsandmarketingactivities.
MacroEnvironment Economic:ifeconomiclevyProductwillbereducingandifeconomicgives
cheapprice.Producewillimprove.GovernmentinvestmentswithSwadeshiPLCthecompanyfuture
productwillimprove.
13.13.13 SocialandCultural:khombasoapssocialandculturalmosttoodifficulttoevaluate.Itis
changingwhatproductwanttoproductforconsumerbecauseeveryonecustomerhasdifferentparching
habits. TechnologicalEnvironment:NewTechnologicalenvironmentcreatesnewproductmarketand
productopportunities.PRICEPriceisamountofmoneychangedbyproductorservice,orthesumofall
thevaluesthatconsumersexchangeforthebenefitofhavingorusingtheproductorservice.(Russian
proverb) CorporateCulture:Theydecidesmarketsellingprice. Suppliers:Supplierssupplyinbest
priceforcustomerandhatpriceis35/=now. Competition:competitorscompanies(Lus,Velvet,
Lifebuoy,andDettol)seeourHerbalsoapprice. Customers:Customerscomparetobuyherbalsoap.
Publics:Publicschooselowpriceandbestqualitysoaps. Political:Manufacturewantstosupplyto
customerinbestprice.Governmentwillimpresslegal. Economies:Ifinvestmentincompany.Product
pricesreduce.Savinghabitsandtaxaredecidesinprice. SocialandCultural:Somecustomersdecide
tobuyherbalsoapbecausetheyregularlybuySwadeshiPLCsproduct.PLACEThemiddlemenisnota
hiredlinkinachainforgetbyamanufacture,butratheranindependentmarket,thefocusofalargegroup
ofcustomerforwhomhebuys.(PhillipMcVey)
14.14.14 Suppliers:supplierssupplyfromproducertocustomerorintermediaries. Intermediaries:
Theyhavevehicles,parkingplaceandstores. Customers:TheybuyCargillfoodcity,normalshops
andRetailers. Political:ThegovernmentchecksSwadeshiPLCsfactory,machineriesandproduct
place. Economies:ourproductsalesinworldislandwidebutKhombaClearsoapisbigpricesocant
salesinvillageside. Technological:Takenewmaterialandusewithtechnologicalintheplace.
PROMOTIONArethemeansbywhichanorganizationattemptstoinform,persuade,andremind
consumersdirectlyorindirectlyabouttheproductstheysell. StaffRelationships:Theydecideabout
whatpromotionwantstogiveforpeople. Suppliers&Intermediaries:Theygivetopromotecustomers
andRetailers Customer:TheywillgetpromotionE.g.haveofferdiscountforregularcustomer
SocialandCultural:SwadeshiPLCbuildshospitalandschools.
15.15.15Task4ThefivelevelsofaproductFiveLevelsofKHOMBA1.Corebenefit:Khomba
LemongrassShowerCreamKhombaLemongrassShowerCreamSatisfycustomerneed.Containsthe
naturalherbalingredientMargosa(Neem/Kohomba)andCucumber,whichdeeplycleanandmoisturize
yourskin.ThenaturalextractofLimewillkeepyourskinclearandrefreshedallday.2.Basicproduct:
Strong&HealthyHerbalShampooSatisfycustomerneedandforlengthyandvolumehair.Troubledwith
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hairbreakage,thinningandlossofhair,heresaperfectlynaturalsolutiontobeefupbrittlehair.Khomba
herbalstrongandhealthyshampoowillhelpyoumaintainhairfreeformsplitends,tangleandbreakage.
ThenaturalblendconsistingofMargosa,SoyaProteinandLemongrasswillfortifyandmakeyourhair
growbeautifullystrongpotentialproductsaugumentedproductsexpectedproductsbasicproductcore
benefit
16.16.163.Expectedproducts:KhombaHairRepairShampooSatisfycustomerneedandforlengthyand
volumehairandforweak&DamagedhairKhombaherbalhairrepairshampoowithMargosa,VitaminE
&Oliveoilisdesignedespeciallyforyoutorepairdamagedhair.Itwillstrengthenandshieldhairagainst
futuredamageandfrizz.4.Augmentedproducts:KhombaHerbalSoapKhomba(Margosa)soaphasoil
andsoapseffect.Itcanusehairandbody.TheSoapproductspurematerials.Aspowerfulcleansing
propertiesnotonlydoesitkeepskinhealthy,butitalsocleanses.Thebodyofallexternalimpurities.
HerbalbeautysoapKhombapure,allnaturalsoapforsafeandhealthybeautytherapy.5.Potential
products:KhombaClearHerbalTransparentSoap.KhombaClearsoapistoplevelinkhombabrand.
KhombaClearisespeciallydesignedforcleansing,moisturizingandimprovingtheskincomplexion.Its
refreshingfragrancewillkeepyourskinfreshthroughouttheday.KhombaClearthenewtransparent
soapcontainsthetimehonoredpurifyingingredientKohomba(Margosa),incombinationwithLimeand
Cucumber,offeringauniqueherbalmix.Kohomba(Margosa)andLimedeepcleansesandtonesthe
skinwhilstCucumbersoothestheskinleavingitrefreshedandfreeofimpurities,promotingclearer
healthierlookingskin.Usedbypeopleallovertheworld.Kohomba(Margosa)isaherbproventobe
safeandgentleonalltypesofskinandithasbeenusedforcenturiesasaherbwithnaturalgermkill
properties.
17.17.17ConclusionTheKHOMBAisnativesoapduetothatIthastheemotionalvalueaddition.Notonly
emotionalvalueadditionbutalsoithasthefunctionalvaluesameasotherbrands.Itisgoingtomarket
undertheSWADESHIPLC.TheSWADESHIPLCalreadyhascountrywidedistributors.Itiswell
recognizedbrandalso.Therefore,theKHOMBAhasthecompetitiveadvantageovertheLUX,
LIFEBUOY,VELVETandetc.KHOMBAcanmaintainthecontinuoussupplywithouteffectby
internationalmarket.So,theKHOMBAcansatisfyitscustomersatanytime.Though,itisnativebrand.
TheproductionofthesoapisslightlyoldsectortoSRILANKA.Ithasinsufficientexperienceduetothat
ithastofacelotofproblemfromproductionsideandmarketingsidealso.Toovercomethisproblem,the
companyshouldappointtheexperienceworkersandgetthehelpfromexpertiseinabroad.Further,the
stateshouldappointtheresearcherstoresearchanddevelopthissector.TheKHOMBAcannotsatisfythe
totaldemandatinitialstageduetopressurefromothercompetitorsandlackoftechnologyandknowledge
inthissector.TheKHOMBAshouldsatisfyandkeepitsinitiallevelcustomerswhileincreasingthe
marketattheendofthenextquarteryear2011.Itshouldcapturethe18.5%ofmarketasmentionedin
objective.TheterminationofwarcreatesthegoodmarketingenvironmentinSRILANKA.Thepeople
havepositivemindsettowardstheLankanproducts.KHOMBAhaslotofopportunityatthismarketing
environment.Thereareonlyfewcompetitors.Therefore,KHOMBAhaslowcompetitionfrom
competitors.Anyhow,unsatisfieddemandisavailableinthemarket.TheKHOMBAhastheabove
opportunitiestopenetratethemarketanditcanachieveitsgoal.KHOMBAwillreducetheimportsoap.
Therefore,theexportingsoapcountrieswillreducetheirsoapimporttousinretaliationmanner.
Therefore,thecountrywillfacesuddenincreaseindemand.ThereforeKHOMBAhastodevelopinvery
rapidphasetohandleanyamountofdemandincountry.KHOMBAneedslotofcommunicationtochange
thecustomers.Attitudesfromlowpricemindsettopremiumprice.
18.18.18RecommendationsKHOMBAhasahighmarketshareandistheleaderofnaturalbeautyandgives
naturalprotectionsoapindustrywhichisitsbiggeststrength.Theadvertisingcampaignslaunchedby
KHOMBAhavebeenveryeffectiveandhavepositioneditwellinthemindsofitsconsumersand
KHOMBAwasthefirstbrandofgoodqualityNaturalBeautysoapthatwaslaunchedinSRILANKA.
KHOMBAcanalsointroduceanewproductlineofliquidcleanersandotherrelatedproductstoincrease
itsgrowthsocanbetocatchmorecustomersthatsgoodwaysTheweaknessofKHOMBAishighersizes
relativetoitscompetingproducts.A70gramsKHOMBAoriginalherbalcaresoapbarisavailablefor
Rs.38whereasthe100gramssizebarofVELVETisavailableforRs.45and100gramssizebarof
LOFEBOUYisavailableforRs.43soKHOMBAwanttoincreasesoapssizeandreducesthesoapprice.
AnotherweaknessofKHOMBAisnohalalcertifiedtoitscompetingproductswhereastheVELVETis
certifiedashalalsoKHOMBAwanttogethalalcertifiet.Similarproductsareincreasingother
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LIFEBUOY,treatandDETTOL,beautysoaplikeLUX,VELVET.SWADESHIPLCcanbebestplacein
someyears.
19.19.19References1.PcmstudypackSLIM2.www.wikipedia.com3.Newspaper(Sundaytimesand
Sundayleader)4.www.swadeshiherbal.com
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