GROUP ASSIGNMENT FOR A DEVELOP A NEW COCONUT OIL BRAND

IN
SRI LANKA

GROUP ASSIGNMENT
Course

- Business Simulation

Course Instructor
Deadline

- Mr. Ravi Dissanayake

- 27th September, 2015

DIPLOMA IN MARKETING
Department of Marketing Management
Faculty of Commerce and Management Studies
University of Kelaniya

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

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.

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

2.3

2.2.1

Weaknesses

2.2.2

Threats

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 Ps

5.1.1

Product

5.1.2

Price

5.1.3

Place

5.1.3

Promotion Mix

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

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) Ltds market share in 2022
To be the top of the mind cooking oil brand in 2025
Successful product diversification New product and New Market
Ansoffs 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.

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 3 rd 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). Todays 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

WEAKNESSES

Well established organization

Parent brand image

Establish distribution channel for GT

High cost of production

Qualified and positive mind set of staff

Limited customer base

Financial Strength

Brand is new and not well established

Good will of the organization

Less awareness of the Brand

Well aligned value chain management

Reliance on outside raw materials

Labor turnover is lesser than industry

Availability of substitutes

norms

Machine maintenances take more time

Poor knowledge on Technology and

Production capacity

Strong Personal Relationship with the

and service expenditure is higher, since

government

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

THREATS

Potential market growth and trend

Foreign exchange Inflation

Economic growth

Rapid increase in the cost of raw and

Export opportunity with standards

On line selling opportunities / Social

packing materials

High level of influence / power of

media promotions

traditional trade(bargaining power of

Growing market trend to purchase

modern trades for margins)

locally made product

People afraid go for the new products

Government backup to local industries

Bargain power of suppliers

Tax and interest free scheme for local

Entrance of similar kind of products to

local market quickly

industries by the government

Can focus on young men segment

Scope of expanding the market

vertically and horizontally

Niche marketing

Local market dominated by

international reputed brands

Financial strength of competitors

Switching cost is high

Female population is high in Sri Lanka

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
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
10

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 economys 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
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 whore
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
11

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

POLITICAL

PESTEL
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.
government department decision makers and approvers.

ECONOMICAL

Discrimination Educational Law.

Currency fluctuations and inflations will have a direct impact
on the final price.

SOCIO CULTURAL

Tax structures and imports limitations and regulations.

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

TECHNOLOGICAL

very high.
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.

ECOLOGICAL

Communication method is growing up.

Adoption of ECO Friendly Recommended Packing.
No side effects.
Recyclable products.
Growing social trends for CSR campaigns for

LEGAL

environmentally friendly products.

Child labor law.
12

 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
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.
13

 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

Intensity and
Rivalry of

MICHEAL PORTERS 5 FORCE THEORY

Very High

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

Threat of New

Strong relationship with traditional and modern trade

Very high

Entrants

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

Bargaining

Competitors can create an artificial demand

High

Power of

Variable Standard raw materials from suppliers

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

14

Due to high quantity purchase by the competitor and they can

Bargaining

demand high quality raw materials for low price

Very high

Power of

Availability of wide range products Customers willingness to

Customers

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

Threats of

New trend in use of Liquid soap and shower gel

Very High

Substitutes

Availability Alternatives products for the competitive price

range

Substitutes are well distributed

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.
15

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
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
16

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
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 (LMRBData).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
17

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

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
20

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

21

Please select the Monthly Salary / Income Range:

Below 10,000
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
22

 Velvet
Pears
Baby Cheramy
Vendol
Others, Please specify..
3. Usage:

Products

Current Use

Previous Use

Lux
Dettol
Rexona
Rani
Kohamba
Lifebuoy
Dove
Venivel
Velvet
Pears
Baby Cheramy
Vendol
Other
4. What made you to use above selected Brands?

23

Have you
ever used
before

Have you
considered to
use

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

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

Years

6. What

Months

is

your

top

of

the

mind

brand

in

the

soap

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 youre using bath soap in a day?
Once
Twice
More than two times
9. What is the frequency of purchase?
24

cube

category?

I.
II.
III.

IV.
V.

Weekly
Once in two weeks
Monthly

Once in 3 months
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
Relatives or Friends Reference
Newspaper

Shopkeepers Reference
Magazines / Posters
Other..

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

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

Packing
25

Neutral

Agree

Strongly
Agree

Price
Aroma /
Fragrance
Shape
Form
Transparent
Milky
Colour
Hygiene / Herbal
values
Value for money
Brand value
Celebrity
Endorsement
Relative /
Friends
Reference
Discount on
single unit
purchase
Special brand
offer
Easy
Availability
Non Animal
fat
Ingredients
No Side
Effect
Skin care
Strongly
Disagree

Disagree

Neutral

Agree

Strongly
Agree

Reliability 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?
26

TV

Channels
Rupavahini
Hiru TV
Varnam TV

ITN
Shakthi TV
MTV

Sirasa TV
CSN

Swarnavahini
TNL

Other, Please specify

Time
Newspaper
Radio
Social Media
Magazine
Other

Specify the Newspaper

Which Station
Please Specify
Please Specify
Please Specify

16. Where do you normally purchase your soap?

Super Market

Retail Shop
Other, Please specify

Direct Marketing Ex - Oriflame

..

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.
27

Sources: Survey Department, Registrar Generals Department, Department of Immigration & Emigration

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;
Customer Expectation
Price
Aroma / Fragrance
No Side Effect
Skin care
Easy Availability
Effects on Anti-Bacterial
Hygiene / Herbal values
Packing
Ingredients
Value for money
Shape
Non Animal fat
Color
Durability
Brand value
Discount on Bulk purchase
Milky
Reliability of the product
Form
Discount on single unit purchase
Relative / Friends Reference
Transparent
Celebrity Endorsement
Special brand offer

Current Soap Benefit

194
168
168
164
160
157
150
142
139
139
134
133
131
130
126
122
122
120
119
105
92
79
59
44

32

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

Busy

Very

Protect

Socialized

Favorable the

Sporty

Usage rate

Benefit
expected

Income

Males

Attitude

Segment

Unemployed Dependent

Life style

Adult SchoolFemale

Occupation

Gender

Education

Age (years)

Segment

S 1 16-20

Regular
use

Skin &
Beauty

20-

Higher

30

Female

Professionals, Low

Busy

Very

Educational Males

Junior

Outgoing

Favorable the

segments

Senior

and

Socialized

Years

General

Female

Education
Males

Regular
use

Skin &

Executives
S 2 25-50

Protect

Beauty

Housewives Low

Family

or Families

Responsibility

the

Busy, Hard

Skin &

Average

Health

working

Favorable Protect

Daily use

Favorable Beauty

Conscious
Males

S 3 18-45

Young

Female

Executives

Young

Average andBusy Life

executives

High

style
Sporty
Relax
Social

4.4.2 Market Targeting

34

Neutral

Protect

Daily Use

the skin
0

Multiple Segmentation method has been used because its 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 firms 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.
4.4.4 Brand Positioning Statement
35

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
Anti-bacterial Value
Forma

Skin Care

Positioning Map Point-of-parity

Chart 2 - POP

Hygienically Nourished
Lifebuoy
Venivel Velvet

Forma
Lux

Rani Kohomba
Pears Cheramy
Value for Money

5 .0 Managing marketing mix

36

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 Ps
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-recommendationsyour-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 companys 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 competitions
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 doesnt 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.

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
42

slogan not only sticks in a customers 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.

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

43

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.

TradeModern

Table 7 Product Mix: Place

Product range

Traditional Trade
Small Medium Large
Scale
Scale
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.
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.

44

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
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

45

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.
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

46

Segments
Families

Sirasa TV / Hiru TV
In Between 7:00 pm to

Shakthi TV
In Between 10:00 am to

MTV / CSN
After and Before

9:00 pm Tele Drama

12:00 Noon Tele Drama

Cookery Programs

Series
Weekdays 4:00 pm to

Series
Weekdays 4:00 pm to

After and Before

6:00 pm In between

6:00 pm In between

Educational Programs

Professionals

Cartoon Time
During Movies & after 6

Cartoon Time
During Movies & after 6 During Movies & after

Young

pm to 10 pm
After Before Share

pm to 10 pm
After Before Business

6 pm to 10 pm
After Before Business

Executives

Market Program And

Programs And Movies

Programs And Movies

Sports Men

During Movies
During sports program

During sports program

During matches and

Students

CSN Channel only on

Cricket Tournaments
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.

47

Advertisement is created to make customers to search about the product and indirectly
describe the uniqueness of the product.

Segments

Families

Weekend

Ladies news papers

Students News

Newspapers

Weekly and

Papers Weekly And

monthly
page Women Page

Women
(Lanka
Sunday

Deepa, (Birida,

Professionals

Nawaliya, Newspapers

Observer, Kalkandu, Mum and

Thinakaran)
Children page

Students

Monthly
Leading Educational

Me, Ammi)
Cookery Page

Hapana,

Sathara,

Education Page

Leading

Students

Sports Page
Business page,

Newspapers
Related article page

Related article page

Fashion Page
Young executives Business page and
Sports men

Classified
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

48

Lunch time 12 Noon to 2 pm

Targeting professional on drive time and after office time

5.1.4.4 BTL Promotions

Coming Soon Poster Campaign in the School Canteens and Target Segments
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

49

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
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
50

 Teen and youth Music shows, talent shows and concerts arrangement and
sponsorships to familiar youth with the brand
Valentines 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.
Google Banner Ads 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.
51

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
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

52

Action
Plan

Ja
n15

Distribut
ion

Appointing
Distribuor
Prodct
Listing for
Modern
Trade
X
X
X

Sandwic
h Boys

Fe
b15

Awarene
ss
Campaig
n for
Opinion
Leaders
Requirt
ment of
sales
Staff
Training
of Sales
Staff

X
X
X

X
X
X

X
X
X

X
X
X

Selection
and
Appointi
ng AD
Agencies
Selection
and
Confirm
ation
Brand

X
X
X

M A
ar- pr
15 15

M
ay
15

J
u
n15

J
ul
15

N
ov
15

D Ja F M
ec n- eb ar Bud
16 get
15
16 16 (Mil
lion
s)
10%
mar
gin

300,
000.
00

X
X
X

100,
000.
00

100,
000.
00
X
X
X

X
X
X

A Se O
u p- ct
g- 15 15
15

200,
000.
00

X
X
X

25,0
00.0
0

X
X
X

500,
000.
00
53

Ambassa
dor
Signing
MOU
with
Brand
Ambassa
dor
ATL Campai
gns: TV
Sirasa
TV

X
X
X

25,0
00.0
0

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

Shakthi
TV

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

MTV

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

Lanka
Deepa

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

Thinakar
an

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

Kreeda

X
X

X
X

X
X

X
X

X
X

X
X

Hiru TV

CSN

ATL Campai
gns:
Newspa
per
Sunday
Times
Sathara

54

1,00
0,00
0.00
1,00
0,00
0.00
1,00
0,00
0.00
500,
000.
00
500,
000.
00

500,
000.
00
100,
000.
00
500,
000.
00
400,
000.
00
100,

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

Sirasa
FM

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

Shakthi
FM

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

Suriyan
FM

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

Sun FM

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

ATL Campai
gns:
Radio
HiruFM

Y FM

Yes FM

BTL Campai
gns:
Poster

X
X
X

X
X
X

X
X
X

000.
00

200,
000.
00
200,
000.
00
200,
000.
00
200,
000.
00
200,
000.
00
200,
000.
00
200,
000.
00

150,
000.
00

Leaflet
50,0
00.0
0
Hoardin
gs
Vehicle
Branding
Branded

750,
000.
00
X
X
X

500,
000.
00
X

X
55

Docume
nt Files

X
X

X
X

Branded
Cosmeti
c Pouch

X
X
X

X
X
X

X
X
X

Branded
Soap
Cases

X
X
X

X
X
X

X
X
X

POSM in
Key
Account
s
X
Pannets

150,
000.
00
150,
000.
00
100,
000.
00

X
X
X

X
X
X

X
X
X

X
X
X

Wobbler
s

X
X
X

X
X
X

X
X
X

X
X
X

Danglers

X
X
X

X
X
X

X
X
X

X
X
X

Gondola
s

X
X
X

X
X
X

X
X
X

X
X
X

Stickers

X
X
X

X
X
X

X
X
X

X
X
X

Sponses
hips

25,0
00.0
0
25,0
00.0
0
500,
000.
00
25,0
00.0
0
1,00
0,00
0.00

Sales
Promotio
n - Push

X
X
X

2,00
0,00
0.00

Sales
Promotio
n - Pull
Personal
Selling

75,0
00.0
0

X
X
X
X
X
X

X
X
X

2,00
0,00
0.00
X
X
X

Total
Budget

X
X
X

X
X
X

300,
000.
00
16,0
50,0

56

00.0
0

4.0 Product Life Cycle Stages

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 its 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.

57

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.
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
whats 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

58

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
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

59

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
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.
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 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.

I.
II.

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
Educational programs for schools children on food nutritions
Donate Rs: 0.50 cents from each pack sale to needy childrens studies in rural

III.
IV.

areas
Blood donation campaigns
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

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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

Forma Soap
Forma Clear
Forma Herbal
TOTAL

Annual Sales Plan 2015

Selling
Total No.
Price
of Units
LKR
48.00
5,000,000
48.00
5,000,000

Total Revenue LKR

240,000,000.00
240,000,000.00
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

Forma Soap
Forma Clear
Forma Herbal
TOTAL

Annual Sales Unitized Wise - 2014

Total No. Traditional Modern
of Units
5,000,000
5,000,000
10,000,000

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Trade
3,500,000
3,500,000
7,000,000

Trade
1,400,000
1,400,000
2,800,000

TTL
100,000
100,000
200,000