The document discusses Visaka soap, an Ayurvedic herbal soap introduced in 1983 by Siddalepa Ayurveda Herbals. It analyzes Visaka's competitive advantages over similar herbal soaps through its product ingredients and qualities, affordable pricing, wide distribution network, and parent brand recognition from Siddalepa's marketing. The document also provides background on Siddalepa's history and product portfolio since 1934.
The document discusses Visaka soap, an Ayurvedic herbal soap introduced in 1983 by Siddalepa Ayurveda Herbals. It analyzes Visaka's competitive advantages over similar herbal soaps through its product ingredients and qualities, affordable pricing, wide distribution network, and parent brand recognition from Siddalepa's marketing. The document also provides background on Siddalepa's history and product portfolio since 1934.
The document discusses Visaka soap, an Ayurvedic herbal soap introduced in 1983 by Siddalepa Ayurveda Herbals. It analyzes Visaka's competitive advantages over similar herbal soaps through its product ingredients and qualities, affordable pricing, wide distribution network, and parent brand recognition from Siddalepa's marketing. The document also provides background on Siddalepa's history and product portfolio since 1934.
The document discusses Visaka soap, an Ayurvedic herbal soap introduced in 1983 by Siddalepa Ayurveda Herbals. It analyzes Visaka's competitive advantages over similar herbal soaps through its product ingredients and qualities, affordable pricing, wide distribution network, and parent brand recognition from Siddalepa's marketing. The document also provides background on Siddalepa's history and product portfolio since 1934.
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CREATING A WINNING BRAND
THROUGH EXPANDING BRAND EQUITY
Prepared By
K.U. Yogachandran
Reg No.
Driving Brands for Results (MGL201) June 2013 Examination
Diploma in Marketing
SRI LANKA INSTITUTE OF MARKETING Acknowledgements I give sincere thanks to Ms. Tharangi Wijesooriya for guiding me to complete this assignment.
Its my dutie to thank Ms. Indika and all other staffs of SLIM-Kandy, for providing us an excellent environment to study.
I wish to sincerely thank my ex-boss Mr. Sanath Piyawardhana (Business Development Manager, Link Natural (Pvt) Ltd), who encouraged me to continue my higher studies in marketing.
I would like to thank senior students of SLIM-Kandy, specially Mr. Eranga Amunugama for helping me to complete this assignment.
I wish to thank my colleagues of PGDip for giving me assistance for this assignment.
I would fail my duties, if I do not specially thank my beloved wife for encouragement given to me.
Introduction Visaka Soap is introduced to the market in 1983 as the first medical soap, by Siddalepa Ayurveda Herbals (Pvt) Ltd, and has resulted in the Department of Customs introducing a new classification for this product category. Even though Visaka Soap is launched in 1983, the parent Siddalepa company has a history from 1934, with the production of Siddalepa pain relief balm. Siddalepa company renowned for using natural products to provide preventive and curative health care. The company has used the concept of the vedamahathmaya, or village doctor, to create strong brand recognition.
The companys first offering was the Siddalepa balm, a herbal product based on a formula that is over 4,000 years old. It was first developed in Sri Lanka in 1934, but it was not until 1971 that the balm was systematically marketed, positioning the company as the foremost Ayurvedic company in the country. From that now the company has expanded to Today into a flourishing multimillion enterprise exporting to 19 countries and employing 3,500 employees.
Siddalepa captured a market share of over 85% in natural pain relief market, with its own age-old tradition of healing with modern manufacturing processes. Outside the pain relief balm, Siddalepa diversified its products into food supplements, rejuvenating teas, herbal- based digestive supplements, face creams, massage oils, Ayurveda spa, health resort, organic fertilizer and even a modern hospital that offers ancient healing practices, with a modern spa using entirely natural products and ancient restorative techniques. In 2005, Siddhalepa was invited by SriLankan Airlines to operate a spa at its business class lounge at the Bandaranaike International Airport. This was the first ayurvedic spa at any international airport.
Siddalepa is the only company in the world to obtain an international patent for its Ayurvedic remedy for diabetes. Also the first Ayurvedic drug-manufacturing company in Asia to have received the prestigious International Standards Quality Systems certificate for its preparations; ISO 9002 certification in 1994 and ISO 9001 in October 2000; a Good Manufacturing Practices (GMP) certificate from the Sri Lankan health authorities; and ISO 14001 environmental certification from the relevant authorities in 2003.
Task 01-A
Competitive analysis Visaka Soap Visaka Soap is not enjoying a sizeable market share in Sri Lankan soap market. According to LMRB Data in 2008 Sri Lankas Toilet and Baby Soap market worth 7 billion rupees a year, this has the tonnage of 22000MT. Within that market Visaka is competing with two major types of soaps, which are herbal brands and non-herbal brands, where herbal brand soaps are direct competitors for the Visaka Soap and non-herbal brands are the indirect competitors for the Visaka Soap.
Lifebuoy and Lux are the market leaders in the toilet soap category, however Market share of the above two brands are moving downwards due to consumers now more health conscious, therefore consumers are moving towards herbal products. Well renowned multinational company Uni Lever recently launched Lifebuoy Herbal, which is a good example for consumers concern on the herbal soap products.
Directly Visaka is competing with Khomba Original, Khomba Clear, Rani Sandalwood, Vendol Venivel, Apsara Venivel, Aththora Herbal, Lifebuoy Herbal, Divya and Paboda, while indirectly Visaka is competing with Lifebuoy, Lux, Velvet, Dettol, & other toilet soaps in Sri Lanka. Direct competitors for Visaka soap has been taken to analyze the competitive advantage, which are Khomba Original, Khomba Clear, Rani Sandalwood, Vendol Venivel, Apsara Venivel from Harisch, Aththora Herbal and Lifebuoy Herbal.
Khomba Original, Khomba Clear, Apsara Venivel and Rani Sandalwood are manufactured by The Swedeshi Industrial Works PLC, Vendol Venivel is manufactured by Vendol Lanka (Pvt) Ltd, Aththora is a product from Harischandra Mills PLC and Lifebuoy Herbal is from Unilever Lanka Ltd, similarly Visaka is also competing with its own company products, which are Divya & Paboda.
Competitive Advantages of Visaka Soap Since Visaka is a Tangible product, competitive advantage of Visaka has been analyzed through the traditional marketing mix of 4Ps.
Product Advantages This Ayurvedic herbal soap is manufactured using rare herbs recommended in ancient Ayurvedic treatises, also this product is comes from Siddalepa family, which is trusted by Sri Lankan households since 1934. Visaka soaps package stated meaning of this Sinhala wording is Product of a Siddalepa family, which gives a clear indication to the customers about the origin of the product. Since Visaka is from reputed Siddalepa brand, which gives the brand advantage among the competitors, because other competitor products does not have the historical evidence of herbal medication, like Siddalepa group has.
Excellent moisturizer of Visaka soap removes all traces of pollution without stripping the skin's natural oils. Even though all the above products are comes under the category of herbal toilet soap, Visaka can be used as shampoo also, which does dual functions of herbal soap and herbal shampoo. This makes the Visaka ahead of all the other competitive brands in terms of product functions.
Visaka uses Aloe, Margosa, Lemon, Keekrindiya, Dill Seeds and Neelayady oil as ingredients, while no competitors used Keekrindiya. Ingredient Keekrindiya is botanically known as Eclipta alba, which is a very famous Ayurvedic medicine for hair and skin. This is a clear competitive advantage of Visaka Soap, in terms of ingredients.
Visaka used eco-friendly packaging, which can be recyclable, while most of its competitor brands are using traditional polythene laminated soap packaging.
Visaka has 76.5% TFM (total fatty matter), which is the highest among the competitors, Vendol venivel soap and Harischadra Aththora also has the same TFM level of 76.5%, while Visakas main competitor Kohomba Original and Apsara Venivel has 70% of TFM level and Lifebuoy Herbal and Khomba clear has 65% TFM level. Using soap with the highest TFM is claimed to be the best, Visaka is giving highest TFM level comparing with the competitors.
Price Advantages
Visaka is the cheapest priced herbal soap in the Sri Lankan Market. The maximum retail price of 75g Visaka soap is Rs. 35.00, while prices of competitive brands are ranging from Rs. 39.00 to Rs. 95.00. Khomba original, the main herbal soap competitor of Visaka is selling for Rs. 39.00, however weight of Khomba original is 70g. Visaka offers great economical value among the competitors by giving more volume for less price, which is also a great competitive advantage for Visaka soap.
Place Advantages
Siddalepa products have a powerful distribution network, which makes the Siddalepa products available at all the outlets in Sri Lanka, which will help to make the Visaka Soap available in all potential outlets, however Visaka soap has problem in its distribution, unlike other Siddalepa products. Now Siddalepa company on process of expanding its distribution network globally, which helps to distribute the Visaka soap globally.
Website of Siddalepa supports the online purchases, which helps the customer to purchase the Visaka soap directly from the company, which is cheap rather than buying from intermediary, specially for global consumers.
Visaka is available on most of the ayurvedic and non-ayurvedic online stores, which helps consumer to purchase Visaka soap from anywhere.
Promotional Advantages
TV and press advertising of parent Siddalepa Company creates the corporate branding awareness to the customers.
Direct selling efforts of efficient sales staffs of Siddalepa Group helps to market Visaka Soaps in all parts of Sri Lanka.
With all the product, price, place and promotion advantages, Visaka soap is clearly staying ahead with its competitors.
SWOT analysis of Visaka Soap with its Competitors Strengths Visaka Soap is from recognized and respected Siddalepa family. Visaka is the cheapest priced herbal soap in the Sri Lankan market with high TFM levels. Distributions of Siddalepa products are very efficient and effective, which can make the Visaka available in all potential outlets. Visaka has trusted long history in the Sri Lankan market. Visaka soap is manufactured by high-tec machineries, with traditional Ayurveda ingredients, which gives a good blend of traditional and technological methods in manufacturing soaps. Siddalepa website is one of the few Sri Lankan websites using E- commerce effectively, which is helping to buy Visaka soap online. Upward trends for herbal products in the world. No side effects or allergies, since all the ingredients are from natural resources. Loyal distributors of Siddalepa group. Research & development for product development. Weakness Lack of brand awareness in the consumers mind on Visaka Soap. Less advertising of Visaka Soap. Advantages of Visaka soap is not communicated to the consumers. Packaging is less attractive, with comparing to the competitive brands Opportunities By using corporate branding, most of the Siddalepa products became the market leaders of their category, similar methods can be a used to gain market share for Visaka soap. Siddalepa expanding its coverage for all the Siddalepa products, which will increase the market share of Visaka soap. Requirement for the herbal brands increasing day by day in the global market. Can increase the market share by giving awareness about Visaka to the consumers/customers. Can introduce a buddy economy pack for Rs. 15.00 or Rs. 20.00, to capture new markets. Threats Heavy competition of similar products. Cost of Production is increasing rapidly because of inflation, with the price increases of raw materials and packing materials. Distribution costs increased with the recent rise of fuel price. Competitors spending more money to expand their market share, especially in advertising and product developing. Due to less Per capita income of Sri Lanka, consumers reducing their consumption of toilet soaps
Task o2
Brand Vision of Visaka Soap
To be the best herbal soap brand in the world with the blend of innovation and tradition, while delighting the consumers with herbal benefits and eliminating the skin dieses
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