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)

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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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