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.

It’s 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.

Table of Contents

Executive Summary.........................................................................................................................4

Introduction....................................................................................................................................5

Executive Summary

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 company’s 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 Lanka’s 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 4P’s.

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 soap’s package stated “සිඬා�ලේ�ප පවුලේ�

” නිපයුමක් 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 Visaka’s 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”

Reference

http://spicegardenshop.com/products/herbal-toilet-soap-visaka http://www.sundayobserver.lk/2006/11/26/printpage.asp?ref=/2006/11/26/fin10.asp

http://www.superbrands.com/lkc1/pdf/10_consumerSB2.pdf

http://repository.kln.ac.lk/107/1/MKT009.pdf

http://en.wikipedia.org/wiki/Victor_Hettigoda

http://www.dailynews.lk/2012/09/08/bus26.asp

http://en.wikipedia.org/wiki/Total_fatty_matter

http://en.wikipedia.org/wiki/Eclipta_alba

http://en.wikipedia.org/wiki/Eclipta_alba

http://www.sundaytimes.lk/080525/FinancialTimes/ft329.html

http://www.ehorana.com/products/SIDDHALEPA-VISAKA-SOAP-75G.html

http://answers.yahoo.com/question/index?qid=1006051001641