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Marketing Research Proposal done for Rani soap Sri Lanka
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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 Rani-
White.
2.3 Literature search
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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 InformationSoap 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.
Mar 2007
Oct 2007
Nov 2007
Dec 2007
Jan 2008
Feb 2008
Mar 2008
TOILET SOAP 100.0 100.0 100.0 100.0 100.0 100.0 100.0UNILEVER SRI LANKA LTD 62.2 60.1 59.8 59.0 61.1 60.6 59.2
LUX 15.3 13.8 13.1 12.2 12.6 13.5 13.5LIFEBUOY 37.6 37.5 37.7 38.0 39.0 37.8 36.5
LB Total 25.6 28.5 29.7 30.5 31.4 30.5 29.6LB Herbal 7.2 6.5 5.9 5.5 5.7 5.3 5.4LB Gold 4.5 2.3 1.9 1.8 1.8 1.9 1.4LB CLEAR SKIN 0.3 0.3 0.2 0.1 0.1 0.1 0.1
PEARS 9.1 8.7 9.0 8.7 9.5 9.2 9.2KHOMBA 6.7 6.1 6.2 6.4 6.4 6.4 6.9BABY CHERAMY 7.0 8.6 9.3 9.3 9.4 9.1 9.4VENDOL VENIVAL 2.6 2.8 2.8 3.0 3.0 2.9 3.3DELMA 2.4 2.0 1.7 1.7 1.2 1.1 1.1JULIET 0.1 0.0 0.0 0.0 0.0 0.0 0.0HARISHCHANDRA 1.1 1.0 0.9 1.0 1.0 1.1 1.1VELVET 1.9 2.4 2.2 2.3 2.3 2.7 2.5KEKULU 2.5 2.4 2.3 2.5 2.2 2.3 2.6JOHNSON'S BABY 0.7 0.5 0.5 0.5 0.6 0.6 0.5VISAKA 0.5 0.6 0.5 0.5 0.4 0.5 0.5DETTOL 1.8 2.2 2.4 2.4 2.7 2.5 2.5APSARA 1.5 0.9 1.0 1.6 1.2 1.0 1.2RANI 3.9 3.5 3.4 4.6 3.4 3.8 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)
soap, as powerful cleansing properties not only does it keep skin healthy, but it also
cleanses.
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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 re-
energize 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 Mkt. Vol. Mkt. Vol. Growth Mkt. Vol. Growth
c/s ann. c/s ann. % c/s ann. %
2003 2004 2005
Lux 300,000 312,000 4 318,000 1.92
Khomba 123,000 96,000 -21.95 126,000 31.25
Vendol 108,000 120,000 11.11 84,000 -30
Rexonna 102,000 84,000 -17.65 60,000 -28.57
Apsara 50,4000 33,000 -34.52 54,000 63.64
Rani 60,900 51,000 -16.26 61,200 20
Life bouy gold 84,000 96,000 14.29 84,000 -12.5
Detol 12,000 6,000 -50 6,000 0
Delma 30,000 18,000 -40 12,000 -33.33
Visaka 12,000 6,000 -50 6,000 0
Others 24,000 36,000 50 36,000 0
Fruity soap 30,000 30,000 0
4.0 Problem Definition4.1 Management Problem
The Rani Beauty Soaps had been introducing to the Sri Lankan market during the last
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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?”
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
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Color
Fragrance
Shape
Lather
Moisturizes / soft
Intention to buy / brand awareness
Areas of improvements
4) Gain brand loyalty
By providing added values such as long lasting freshness with sandalwood
fragrance
How to reduce Brand switching
How to create a strong brand awareness through intensive marketing
solutions
Change the physical appearance of the product
Frequency programs encourage repeat purchase
Develop and reinforce brand identity
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.
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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.
Sample For theResearch
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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Defining the Population
Determining the Sample Frame
Selecting Sampling Technique
Determining the Sample Size
Execute theSamplingProcess
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
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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 QuestionsUnderstand the customer movements
Competition analysis
Evaluation of the product
Identify the reasons, attitudes, likes and dislikes of the people using toilet soap.
Identify the people’s attitudes towards the toilet soaps.
Costumers ideas to reposition the product
Evaluation of the product
1,2,3,4
5,6,7
8 - a,b,c
9
10
11,12
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The following information’s are basically highlighted in the questionnaire.
Consumers Likes / Dislikes
Overall Opinion
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Ratings on key attributes (Extremely important, Very
important, Fairly important, Not so important, Not at all important)
Areas of improvements
5.3-1 Measurement scalesFor 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
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improved. The following are some of the limitations that came about
during the course of the study.
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.
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
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Market leader in the Sandalwood soap sector
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 PlanActivity 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 industryCompleting and Handing over the Proposal
Questionnaire DesigningDistributing and filling out questionnaire
Entering data in to SPSSAnalyzing DataConclusion and Reporting and Presenting
8.1 Budget
Component Estimated Cost Rs
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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
SWADESHI Industries Board paper (March 2008)
24
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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