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.

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 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


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