SUPERIOR CUSTOMER VALUE THROUGH MARKETING MIX of KHOMBA (SWADESHI PLC)

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SUPERIOR CUSTOMER VALUE THROUGH
MARKETING MIX
Prepared By
A.M. Azhar
PCMIV/2012/COL-0200
Slim Home Colombo
2012/December/01
Preliminary Certificate in Marketing
SRI LANKA INSTITUTE OF MARKETING

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Table of Contents
1. Executive summary - 1
2. Introduction - 2
3. Methodology - 3
4. Task 1 - 4
5. Task 2 - 6
6. Task 3 - 10
7. Task 4 - 13
8. Conclusion - 15
9. Recommendations - 16
10. References - 17

3. 3
Executive Summary
The assignment was done to review the marketing operations and suggest suitable
recommendations to soapy production in SRI LANKA. LUX, LIFEBUOY and
VELVET are mostly fulfilled the soapy demand in SRI LANKA. Though, some
products are purchased because their customers do so out of habit, out of trust built
over a long period of time. The government has no control over above facts. This
facts are proofing the requirement of the own soap production in country. The
current research and experiments indicted the potential of soap production. Products
were branded as ‘KHOMBA’. This assignment only covers the soapy products. The
KHOMBA is available at the market under the SWADESHI PLC as a value added
brand. The several branding strategies and brand tools are used to market the
KHOMBA in the market. Branding the soap is not enough to catch the market.
Therefore, the product should communicate with customers in appropriate method.
The several methods such as advertising, direct marketing, promotional campaigns
are used to communicate. KHOMBA should deliver the product at the correct time
at correct point. It requires the well established distribution channel all over the SRI
LANKA include eastern and Northern Province. Further, any company cannot run
without profit. Therefore, KHOMBA should concern the cash budget.

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Introduction
Assignment
There are many products in the market today, many options, and many areas for a
consumer to decide on before making a purchase. Some products are purchased
because their customers do so out of habit, out of trust built over a long period of
time, out of recommendations by other users/customers/consumers and so on.
This study will look deeper into a particular product chosen and elaborate on
various views,
Suggestions and recommendations for the product
You work for a company dealing in FMCG products, considering buying over a
leading LOCAL brand of facial soap, assuming it is up for sale.
Your suggestions for the tasks given should be based on clear arguments and
decisions using relevant Marketing tools studied. They have to be presented to the
Directors of the Company, giving suggestions and clear recommendations on why
they should take on the product/brand.

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Methodology
To get the depth knowledge in the FMCG sector the desk research is carried out.
For that lot of annual reports and web sites are referred. The financial records and
statements are collected from New Colombo Traders in Eravur (Dealer of Swadeshi
Company’s Product). In order to collect the information Mr. M.C.Thasleem (dealer)
was interviewed and also 100 numbers of people was interviewed from different
areas of Sri Lanka.

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Task 1
Marketing mix is the set of controllable, tactical marketing tools that the firm
blends to produce the response it wants in the target market. The marketing mix
consists of everything the firm can do to influence the demand for its pro
(Philip kotler-12th
edition)
Marketing Mix for KHOMBA
Marketing mix element description unique
feature/effectiveness
PRODUCT
Brand Name- KHOMBA
Packaging – 70 grams x 144 units
per case
Quality – ISO 9001 : 2008
Certified Company
Sizes –
70 grams
Services - Two services will
be carried out free of charge
In Line With The
Needs Of Its Target
Customers
The only
Product Group: Beauty Soap
Product Placement: a Clear
Herbal Transparent Soap
Active Herbal Ingredients:
Margosa oil (Azadirachta
indica )
Weight Per unit: 70 grams
Packing: 70 gramsx144
units per case Specifications:
L : 340 mm x W : 250 mm x
H : 277 mm Volume Per
Case: 0.02355M3
Case per FCL: 20' FCL :
1250 cases 40 FCL : 2500
cases
Weight: 70g
Gross wt : 12.50

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PRICE
List price 38/= Rs
Payment term –full cash
Competitive
Advantage
High price- high Value
PLACE
Channels - Consisting of
over 1500 sales, spare parts
and service dealerships
Key account – 13 sales
offices 17 regional office.
Mix Should Be Well
Blended
High availability
In the right quantities
In the right condition
With the right degree of
advice and after – sales
service
PROMOTIONS
Sales promotion –
Public relation -
helping schools & hospital
fighting the dengue menace
donate to build healing
home for war heroes
Mix Should Be Well
Blended
Promotion is done in a
care full manner with a
strategic intent to
maintain customer
relationships.

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Task 2
Introduction
KHOMBA is the value added native soap. Therefore, it will market at somewhat
high price. KHOMBA will capture the 18.5 percentage of the market share in soap
within the next quarter year in SRI LANKA. Key audience is women, men and
children. KHOMBA has to communicate with that key audience very effective and
efficient manner. Further, it is slightly new product to extinct market. Therefore, the
customers have uncertainty and risk in their mind due to the lack of information.
Marketing communication is very much important to inform, persuade, remind and
alter the customer mind.
6.2) SWOT Analysis
a) SWOT listing
 Strengths:
Acknowledged market leader:
Strengths
 Adequate financial resources
 Product innovation skills
 Acknowledged market leader
 Advertising effectiveness
 Ahead on experience curve
 ISO certified product
Weaknesses
 Insufficient experience
 Can not satisfy the demand at
initial stage
 Higher price for (Khomba
Clear Transparent Soap)
 No halal certified
Opportunities
 Growing FMCG market
environment in SRI LANKA
 Few competitors
 Unsatisfied demand
 Serve additional customers
 Enter new market segment
 Diversify products
 )

Threats
 Competition from existing
international brands in the
market – LUX,
LIFEBUOY, VELVET and
etc.
 Growing bargain power of
customers & suppliers

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 Strengths
KHOMBA has a high market share and is the leader of natural beauty and gives natural
protection soap industry which is its biggest strength.
Advertising Effectiveness:
The advertising campaigns launched by KHOMBA have been very effective and have
positioned it well in the minds of its consumers.
Ahead on experience curve:
KHOMBA was the first brand of good-quality Natural Beauty soap that was launched in
SRI LANKA.
 Weaknesses:
Price & Sizes:
The weakness of KHOMBA is small sizes relative to its competing products. A 70grams
KHOMBA original herbal care soap bar is available for Rs.38 whereas the 100 grams size
bar of VELVET is available for Rs.45 and 100 grams size bar of LOFEBOUY is
available for Rs.43.
Halal:
Another weakness of KHOMBA is no halal certified to its competing products whereas
the VELVET is certified as halal.

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 Opportunities:
Serve additional customers:
KHOMBA has various opportunities for growth in the market, which includes the
opportunity of serving additional customers through market penetration. KHOMBA can
increase its market penetration by promoting its use in hospitals and such other places
where beauty soaps can be used.
Enter new market segment:
KHOMBA also has the opportunity of entering a new market segment by increasing its
product line horizontally. It can modify its nature’s care & nature’s beauty soap into clear
soap which promises germ protection and can enter in the anti-bacterial soap market.
Diversity into Related products:
KHOMBA can also introduce a new product line of liquid cleaners and other related
products to increase its growth.
 Threats:
Increasing competition:
The threats posed to KHOMBA from the external environment include increasing
competition. KHOMBA is facing increasing competition from other anti-bacterial soap
brands like LIFEBUOY, treat and DETTOL, beauty soap like LUX, VELVET and etc.
Lifebuoy has launched an aggressive promotional campaign against KHOMBA by the
name of ‘Lifebuoy Germ busters’ which is based on a similar format as ‘KHOMBA
CLEAR’ launched by KHOMBA.
Anti-bacterial soaps

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Beauty soaps
Growing bargain power of suppliers & customers with the increase in the supply of anti-
bacterial soaps and the beauty soaps in the market, another threat that is posed to
KHOMBA is the growing buying power of its suppliers and customers.

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Task 3
Product
As anything that can to be offered to a market for attention, acquisition, use or
consumption that might satisfy a want or need.
(Philip Kotler-12th
edition)
Internal Environment
 Staff Relationships: - SWADESHI PLC’s staff relationships control of
manage, management should be to create. They product each division is
divided into section based on the major product line.
 Corporate Culture: - SWADESHI PLC’s culture is a lengthy process, since
people change slowly.
Micro environment
 Suppliers: - suppliers supply to link product to customer. They ask product
problems and no satisfactions from customer and say that commend to
SWADESHI PLC’s producer/manufacture. Suppliers give to satisfy
customers.
 Intermediaries:- SWADESHI PLC’s Intermediaries to ensure that their
product reach for final consumer. They supply directly and indirectly.
 Competition:- SWADESHI PLC’s product( Khomba Clear, oil, soap)
completive with Lifebuoy, Dettol, Lus, Velvet and etc
 Publics: - SWADESHI PLC also includes various publics. Financial publics
give funds. Government publics see to check product rules and regulation.
General public attitude towards it is products and marketing activities.
Macro Environment
 Economic: - if economic levy Product will be reducing and if economic
gives cheap price. Produce will improve. Government investments with
Swadeshi PLC the company future product will improve.

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 Social and Cultural: - khomba soap’s social and cultural most too difficult to
evaluate. It is changing what product want to product for consumer because
every one customer has different parching habits.
 Technological Environment: - New Technological environment creates new
product market and product opportunities.
PRICE
Price is amount of money changed by product or service, or the sum of all the
values that consumers exchange for the benefit of having or using the product or
service.
(Russian proverb)
 Corporate Culture: - They decides market selling price.
 Suppliers: - Suppliers supply in best price for customer and hat price is 35/=
now.
 Competition: - competitors companies (Lus, Velvet, Lifebuoy, and Dettol)
see our Herbal soap price.
 Customers: - Customers compare to buy herbal soap.
 Publics: - Publics choose low price and best quality soaps.
 Political: - Manufacture wants to supply to customer in best price.
Government will impress legal.
 Economies: - If investment in company. Product prices reduce. Saving
habits and tax are decides in price.
 Social and Cultural: - Some customers decide to buy herbal soap because
they regularly buy Swadeshi PLC’s product.
PLACE
The middlemen is not a hired link in a chain forget by a manufacture, but rather an
independent market, the focus of a large group of customer for whom he buys.
(Phillip McVey)

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 Suppliers: - suppliers supply from producer to customer or intermediaries.
 Intermediaries: - They have vehicles, parking place and stores.
 Customers: - They buy Cargill food city, normal shops and Retailers.
 Political: - The government checks Swadeshi PLC’s factory, machineries
and product place.
 Economies: - our product sales in world island wide but Khomba Clear soap
is big price so can’t sales in village side.
 Technological: - Take new material and use with technological in the place.
PROMOTION
Are the means by which an organization attempts to inform, persuade, and remind
consumers – directly or indirectly about the products they sell.
 Staff Relationships: - They decide about what promotion wants to give for
people.
 Suppliers & Intermediaries: - They give to promote customers and Retailers
 Customer: - They will get promotion E.g.- have offer discount for regular
customer
 Social and Cultural: - Swadeshi PLC builds hospital and schools.

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Task 4
The five levels of a product
Five Levels of KHOMBA
1. Core benefit:- Khomba Lemongrass Shower Cream
Khomba Lemongrass Shower Cream Satisfy customer need. Contains the
natural herbal ingredient Margosa (Neem/Kohomba) and Cucumber,
which deeply clean and moisturize your skin. The natural extract of
Lime will keep your skin clear and refreshed all day.
2. Basic product : - Strong & Healthy Herbal Shampoo
Satisfy customer need and for lengthy and volume hair. Troubled with
hair breakage, thinning and loss of hair, here’s a perfectly natural
solution to beef up brittle hair. Khomba herbal strong and healthy
shampoo will help you maintain hair free form split ends, tangle and
breakage. The natural blend consisting of Margosa, Soya Protein and
Lemon grass will fortify and make your hair grow beautifully strong
potential products
augumented products
expected products
basic product
core benefit

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3. Expected products :- Khomba Hair Repair Shampoo
Satisfy customer need and for lengthy and volume hair and for weak &
Damaged hair Khomba herbal hair repair shampoo with Margosa,
Vitamin E &Olive oil is designed especially for you to repair damaged
hair. It will strengthen and shield hair against future damage and frizz.
4. Augmented products:- Khomba Herbal Soap
Khomba (Margosa) soap has oil and soap’s effect. It can use hair and
body. The Soap products pure materials. As powerful cleansing
properties not only does it keep skin healthy, but it also cleanses. The
body of all external impurities. Herbal beauty soap-Khomba pure, all
natural soap for safe and healthy beauty therapy.
5. Potential products: - Khomba Clear Herbal Transparent Soap. Khomba
Clear soap is top level in khomba brand.
• Khomba Clear is especially designed for cleansing, moisturizing and
improving the skin complexion. Its refreshing fragrance will keep your
skin fresh throughout the day.
• Khomba Clear the new transparent soap contains the time-honored
purifying ingredient Kohomba (Margosa), in combination with Lime and
Cucumber, offering a unique herbal mix.
• Kohomba (Margosa) and Lime deep cleanses and tones the skin whilst
Cucumber soothes the skin leaving it refreshed and free of impurities,
promoting clearer healthier looking skin.
• Used by people all over the world. Kohomba (Margosa) is a herb proven
to be safe and gentle on all types of skin and it has been used for
centuries as a herb with natural germ kill properties.

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Conclusion
The KHOMBA is native soap due to that It has the emotional value addition. Not only
emotional value addition but also it has the functional value same as other brands. It is
going to market under the SWADESHI PLC. The SWADESHI PLC already has country
wide distributors. It is well recognized brand also. Therefore, the KHOMBA has the
competitive advantage over the LUX, LIFEBUOY, VELVET and etc. KHOMBA can
maintain the continuous supply without effect by international market. So, the KHOMBA
can satisfy its customers at any time.
Though, it is native brand. The production of the soap is slightly old sector to SRI
LANKA. It has insufficient experience due to that it has to face lot of problem from
production side and marketing side also. To overcome this problem, the company should
appoint the experience workers and get the help from expertise in abroad. Further, the
state should appoint the researchers to research and develop this sector. The KHOMBA
cannot satisfy the total demand at initial stage due to pressure from other competitors and
lack of technology and knowledge in this sector. The KHOMBA should satisfy and keep
its initial level customers while increasing the market at the end of the next quarter year
2011. It should capture the 18.5% of market as mentioned in objective.
The termination of war creates the good marketing environment in SRI LANKA.
The people have positive mind set towards the Lankan products. KHOMBA has lot
of opportunity at this marketing environment. There are only few competitors.
Therefore, KHOMBA has low competition from competitors. Anyhow, unsatisfied
demand is available in the market. The KHOMBA has the above opportunities to
penetrate the market and it can achieve its goal.
KHOMBA will reduce the import soap. Therefore, the exporting soap countries will
reduce their soap import to us in retaliation manner. Therefore, the country will face
sudden increase in demand. Therefore KHOMBA has to develop in very rapid phase
to handle any amount of demand in country. KHOMBA needs lot of communication
to change the customers. Attitudes from low price mindset to premium price.

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Recommendations
KHOMBA has a high market share and is the leader of natural beauty and gives natural
protection soap industry which is its biggest strength. The advertising campaigns
launched by KHOMBA have been very effective and have positioned it well in the minds
of its consumers and KHOMBA was the first brand of good-quality Natural Beauty soap
that was launched in SRI LANKA.
KHOMBA can also introduce a new product line of liquid cleaners and other related
products to increase its growth so can be to catch more customers that’s good ways
The weakness of KHOMBA is higher sizes relative to its competing products. A 70grams
KHOMBA original herbal care soap bar is available for Rs.38 whereas the 100 grams size
bar of VELVET is available for Rs.45 and 100 grams size bar of LOFEBOUY is
available for Rs.43 so KHOMBA want to increase soap’s size and reduces the soap price.
Another weakness of KHOMBA is no halal certified to its competing products whereas
the VELVET is certified as halal so KHOMBA want to get halal certifiet. Similar
products are increasing other LIFEBUOY, treat and DETTOL, beauty soap like LUX,
VELVET. SWADESHI PLC can be best place in some years.

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References
1. Pcm study pack - SLIM
2. www.wikipedia.com
3. News paper (Sunday times and Sunday leader)
4. www.swadeshiherbal.com