Mkt Report(Meril Splash)
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Transcript of Mkt Report(Meril Splash)
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1.0 Company Introduction
Square Group of Companies is one of the most reputed and largest local companies of Bangladesh. The company is very reputed and has a very good image not only in Bangladesh but also in many foreign nations. It was set up in 1958 with the Pharmaceutical Company and in 1988 Square Toiletries Limited made its entry as one of the divisions of Square Pharmaceuticals Ltd. In 1994 Square Toiletries Limited began its journey as a separate entity. At present, Square Toiletries is the country's leading manufacturer of international quality cosmetics and toiletries products. Today with over 50 products, Square Toiletries Ltd is one of the largest companies in the toiletries sector of Bangladesh. Through their distribution network, they have succeeded to penetrate consumers the most in the country.
1.1 Product
Skin Care
Hair care
Baby care
Oral care
Household care
Fabric care
Male Grooming
Health & hygiene
1.2 Corporate Level Strategy
1.2.1 Vision
“We attempt to understand the unique needs of the consumer and translate that needs into
products which satisfies them in the form of quality products, high level of service and
affordable price range in a unique way.”
A GROUP PROJECT ON VALUE CHAIN ANALYSIS OF MERIL SPLASH BEAUTY SOAP
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1.2.2 Mission
1. Addressing the unique needs, we endeavor for top quality products at the least
cost reaching homes of all people in the country.
2. With continuous R&D and innovation we strive to make our products complying
with international standards in order to provide top-notch brands to our consumers
both domestic and international.
3. To fulfill our responsibility to the Government through payment of entire range of
due taxes, duties, and claim to various public agencies. And as responsible
citizens, we make every effort for a social order devoid of malpractices, anti-
environmental behaviors, unethical and corruptive dealings.
4. We strive for best compensation to all the employees who arethe back-bone of the
company through a pay-package composing salary/wages, allowances, bonus,
profit participation, leaves salary and superannuation & retirement benefits.
5. To be socially responsible to the citizens of Bangladesh by initiating activations
conforming to social and cultural benefits.
2.0 Product Introduction
Meril Splash Beauty Soap is one of the skin care products of Square Toiletries Limited. It
was introduced into the market in October 2007. Meril Splash soap especially developed
for Bangladeshi girls, in the local market. According to STL “A famous quote states that
all’s well that ends well. To end well you need to start the best way you can. When you
step out of your home every morning, you want to look your best as well. As the day
takes its toll, the morning freshness starts to disappear with dirt, sweat and exhaustion.
When the day lets you free from its vice-like grip, you want to wash away the grimy
memories and feel fresh again. The showers you will take, have it on Meril Splash
Beauty Soap, and come out refreshed!”
The core benefit offered by Meril Splash is freshness. The very nature of Bangladeshi
skin needs extra attention because the climatic conditions are not mild like that of
temperate climate. The heat and humidity are the constants one cannot get rid off!
Furthermore, the level of toxicity in air and water is not doing our skin any favor. Dirt is
A GROUP PROJECT ON VALUE CHAIN ANALYSIS OF MERIL SPLASH BEAUTY SOAP
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what one has to deal with day in day out. If one don’t pay due attention to his/her skin,
then early age wrinkles, acnes and other skin problems will make their presence felt
sooner than later. With some care and effort, these undesirables can very well be
prevented. The Meril Splash beauty soap contains special ingredients and contains fruity
fragrance. It comes in four different variants, Water Melon, Turmeric, Cucumber and
Peach. Each variant has a unique formula, Active Freshness which helps the skin to retain
its freshness. The four variants tackle different skin problems such as reviving sunburn
skin, nourish damaged skin, moisturize and revitalize to moisturize and revitalize
blemished skin. Meril Splash keeps user fresh all day long, skin beautiful and radiant.
Once someone starts using Meril Splash Beauty Soap, he/she will live the brand slogan:
“Snigdho Konna, Roop e Ononna”.
3.0 Value Chain
The value chain approach was developed by Michael Porter in the 1980s in his book
“Competitive Advantage: Creating and Sustaining Superior Performance” (Porter, 1985).
The value chain framework of Porter (1990) is “an interdependent system or network of
activities, connected by linkages.” When the system is managed carefully, the linkages
can be a vital source of competitive advantage. In order to conduct the value chain
analysis, the company is split into primary and support activities (Figure 1).
Figure 1: The Value Chain: Source: Porter (1985)
A GROUP PROJECT ON VALUE CHAIN ANALYSIS OF MERIL SPLASH BEAUTY SOAP
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Primary activities are those that are related with production, while support activities are
those that provide the background necessary for the effectiveness and efficiency of the
firm, such as human resource management.
4.0 Value Chain Analysis of Meril Splash Beauty Soap
The primary and secondary activities of the meril splash beauty soap are discussed in
detail below.
4.1 Support activities
The support activities include the following:
4.1.1 Procurement
This function is responsible for purchasing the materials that are necessary for the
product’s operations. An efficient procurement department should be able to obtain the
highest quality goods at the lowest prices. Procurement especially of raw material
contents and packaging material is critical to the product and ultimately to the
organization’s success. Square Toiletries Limited is basically focusing on cost leadership
in branded soaps market. For their raw material procurement they have opted
“outsourcing” strategy. Many contents of meril splash are procured from Malaysia,
Singapore and some of raw material is locally available it increases the lead-time. The
procurement system of meril splash is mostly globally centralized and is long term as
well. For purchase of local raw material STL is outsourcing with its suppliers. They have
got very good long term relationship with their suppliers of local raw material as well.
Hence they get the quantity discounts and manage lead time as well. Most of packaging
materials procure from local manufacturer. Procurement functional activities perform by
its Supply Chain Management department as per requirement and manage lead time as
well. STL handles this situation with “near to JIT system” i.e. called ERP (Enterprise
Resource Planning) System. Through this system the suppliers of raw material are well
connected through computer terminal, the detail and current level of all raw materials,
inventory level is reflected on supplier terminal and on specific interval they ship the raw
A GROUP PROJECT ON VALUE CHAIN ANALYSIS OF MERIL SPLASH BEAUTY SOAP
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material automatically which reduces time for repeated requisition. After releasing the
material from customs the ingredients are shipped to Rupshi Plant. These ingredients are
processed (both local and imported) in the machinery specifically designed for this
purpose.
4.1.2 Human Resource Management
This is a function concerned with recruiting, training, motivating and rewarding the
workforce of the company. Human resources are increasingly becoming an important
way of attaining sustainable competitive advantage. Human resource management is the
one of the most important supporting pillar of the value chain and it is useful for its
analysis. A firm’s higher technological and financial resources cannot do anything for the
betterment of company unless these two and rest of the resources are handled by the good
appropriate human resources.
Square Toiletries Limited has a skilled, qualified, expert, communicative
management and officer’s staff. They have both formal and informal network of
communication in their organization to complete the tasks and target efficiently
and effectively. There is healthy type of network among Square Toiletries Limited
staff’s department. Square Toiletries Limited offers the training programs and
arranges seminars for further skill development and career development purposes
of its brand managers, marketing managers, research and development managers,
and other staff, which enhances their efficiency to support the primary activities
of value chain of meril splash beauty soap. Due to necessary training, healthy pay
scales, balanced empowerment, informal and formal combination of
communication network the job satisfaction of each and every employee is very
high. This reduces the employees’ turnover to minimal.
STL’s Training & Development enables their people to enhance their skills, keep
them updated with recent changes. They offer both on-the-job and off-the- job at
both theoretical and practical training opportunities through a range of Local,
Regional and International Training programs that include both functional and
managerial levels on the basis of Training Need Assessment. Training Need
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Analysis (TNA) is conducted by Department Heads and Human Resource
Department jointly on the basis of job analysis. And those training help to
improve meril splash soap.
STL sends their employee to abroad for training program depending on
availability of appropriate topics. Technical persons of their factories attend the
Factory Assessment Test (FAT) in various parts of the world for smooth operation
of equipments. Twice in every year, mid-level managers of sales participate in the
training program titled “Sales Territory Management” at a regular basis. Such
types of training helps to make employees more knowledgeable about its product
like Meril splash.
4.1.3 Technology Development
This is an area that is concerned with technological innovation, training and knowledge
that is crucial for most companies today in order to survive. By technological
development as a supportive activity we mean that how much organization is bringing
further improvements in its products and product development.
Toiletries Limited symbolizes innovation. STL is the pioneer for bringing in new
products and packaging concepts in Bangladesh. Meril splash beauty soap is carrying out
its production in fully automated plants at Rupshi. With its state-of-the-art production
facilities, most advanced equipment, and high quality raw materials, STL ensure the
absolute best for its customers. Depending on the nature of products, formulation, and
packaging, STL has specific machinery for meril splash soap. A group of well-trained
people always ensures the smooth operations of all machinery. Imported from various
foreign suppliers, the best quality raw materials are used for meril splash. Each phase of
the production process undergoes rigorous testing to meet international standards,
following the GMP (Good Manufacturing Practice) of production.
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With the help of STL’s strong R&D department meril splash is committed towards
developing new products & improving existing products. The objectives of meril splash
are:
A deep understanding of consumers, their habits, and product needs.
Capabilities to acquire, develop, and apply technology across Square Toiletries
Limited broad array of product categories.
The ability to make "connections" between consumers' wants and what
technology can deliver.
4.1.4 Firm Infrastructure
This includes planning and control systems, such as finance, accounting, and corporate
strategy etc.
Square Toiletries Limited has a well established infrastructure. They have knowledgeable
expert top management and middle management who have expertise in the consumer
goods fields. STL has few experts to furnish their product meril splash knowledge. In the
organization they have an open, team oriented and multicultural work environment. The
exchange of knowledge and learning from others inside and outside the company is part
of its everyday business. Chief Executive Director controls all departmental head and
departmental head control their respective subordinate as per chain of command. STL
values the employees as the greatest asset. Their expertise, passion and enthusiasm are
keys to their success. They encourage personal and professional development based on
respect, rewarding self-initiative and teamwork. Their goal is to empower their
employees at every level and integrate them fully into the global network. Thus, they
have adopted decentralized control system to fit in to the corporate strategy but most of
the powers hold by central authority such as Strategic planning making power, Major
financial power. Maintenance of sociable working environment which results in lowest
turnover rate and a highly motivated workforce. All of them contribute a lot and
positively for the support of value chain primary activities i.e.-
A GROUP PROJECT ON VALUE CHAIN ANALYSIS OF MERIL SPLASH BEAUTY SOAP
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They have a very good and effective management information system, which not
only shares the information within the organization but also with the suppliers and
wholesalers of meril splash as well. This saves their time and gives them real-time
information.
Marketing research department is also sharing consumer research data to improve
meril splash’s standards according to customer demand and trends e.g. meril
splash recently introduce a new variant called ‘meril splash-extra fresh’ which
packaging is totally different than previous.
Procurement manager putting his efforts for the purchase of high and right quality
making inbound logistics.
Operations / brand manager is focusing ensuring the relationship of the meril
splash production.
Sales and distribution manager of Square Toiletries Limited is ensuring the
complete coverage of retail outlets. He ensures that all variants of meril splash
soap are available on each shopping outlet of Bangladesh i.e. from large shopping
stores to small shop covering both rural and urban areas.
4.2 Primary activities
The primary activities include the following:
4.2.1 Inbound logistics
These are the activities concerned with receiving the materials from suppliers, storing
these externally sourced materials, and handling them within the firm. Inventory Control
department receive raw materials ingredient of meril splash soap from suppliers. At the
receiving point Quality Control department confirm the product quality. The basic inputs
of meril splash soap are purchased from outsource suppliers. Instead of backward
integration they believe in outsourcing which reduces their cost. Square Toiletries Ltd.
high lead time in case foreign procurement and manage this by placing order in time.
A GROUP PROJECT ON VALUE CHAIN ANALYSIS OF MERIL SPLASH BEAUTY SOAP
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4.2.2 Operations
These are the activities related to the production of products and services. Square
Toiletries Ltd. has been in meril splash product line since 2007. For this long time
experience they acquired superior production method. Meril Splash’s production systems
are automated and modernized. With their state-of-the-art production facilities, most
advanced equipment, and high quality raw materials, they ensure the absolute best for
their customers. A group of well-trained people always ensures the smooth operations of
all machinery. Imported from various foreign suppliers, the best quality raw materials are
used for all STL products. Square Toiletries Ltd. has a factory at Rupshi in which they
produce this soap. Each phase of the production process undergoes rigorous testing to
meet international standards, following the GMP (Good Manufacturing Practice) of
production. It strives to continuously upgrade manufacturing technology and to maintain
optimum level of quality measures in conformity with the international standard – ISO
9001: 2008. Safety is an essential element of any business. At the design stage of meril
splash, STL check the safety of new raw materials, the development of new actives,
formulations and methods. They also check the safety of packaging, distribution and
promotional activities.
4.2.3 Outbound logistics
These are all the activities concerned with distributing the final product and/or service to
the customers. Final product of Meril splash of Square Toiletries Ltd. is shipped to its
distributors via truck on the demand of these distributors. Transportation cost of soap
product delivery to distributor end bear by company itself. Square Toiletries Ltd. covers
all the retail and shopping outlets of Bangladesh. Square Toiletries Ltd. Ensures
availability and visibility of its meril splash as each and every large store, medium and
small shops.
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4.2.4 Marketing and sales
This functional area essentially analyses the needs and wants of customers and is
responsible for creating awareness among the target audience of the company about the
firm’s products and services. Companies make use of marketing communications tools
like advertising, sales promotions etc. to attract customers to their products. Square
Toiletries Ltd. has aggressive marketing to create product demand to potential user.
Square Toiletries Ltd. makes good relation with their distributors and retailers. Meril
splash beauty soap give incentive, discount and prize offer to its distributor, retailers and
client.
With the promise of giving extra freshness to Bangladeshi Girls, STL has developed and
marketed Meril Splash Beauty Soap. Meril Splash is the brand that believes freshness is a
key to a girl’s beauty. This platform of freshness is now extended further as we
understand that the inner freshness of a Bangladeshi girl is eternal and is much bigger
than the external beauty. STL carefully integrates and coordinates many communication
channels to deliver a clear, consistent and compelling message about “Meril Splash
Beauty Soap.” To reach in consumer they use different types of advertisement. This are-
Magazine advertisement, Television advertisement, Newspaper advertisement, Billboard
advertisement, Poster advertisement etc. In the advertisement Meril Splash Beauty Soap
sends a message- “SNIGDHOTAR SHOTEJ ANONDE”. Through these advertise Meril
express that Meril Splash is for those who want to feel quite smooth and vigorous and
energetic. So they use a symbolic word picture that a young girl is feeling more energetic
and dreaming that she has lost in the fresh and breezy world.
Meril Splash and Persona has come together with an Event “Inspiring Freshness.” The
whole concept was cherished with the handover of a Legendary Award for Inspiring
Freshness to Feroza Begum, the renowned Najrul Shangit singer. She was given the
award for her contribution in music, her fresh look and voice that inspired all of us. All of
those marketing and sales policy add value in this product and encourage consumers to
buy this product.
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4.2.5 Service
There is often a need to provide services like pre-installation or after-sales service before
or after the sale of the product or service. Meril Splash has aggressive marketing policy to
create product demand to potential user. Meril Splash has good “service” in terms they
offer free samples for the re-launch of Soap, which helps as a primary activity. STL
makes good relation with the distributors and retailers. It provides various incentive
package such as trade incentive package and consumer incentive package. Trade
incentive package give to distributor and retailers, on the other consumer incentive
package give to end user. Company also arrange various seminar and conference
regarding and consumer relationship and good behavior.
5.0 Conclusion
Meril Splash Beauty Soap is one of the popular products of STL. The value chain frame
work helps analyze the contribution of individual activities in a business to the overall
level of customer value the firm produces and ultimately to its financial performance. If
each part of the business produces value, the firm should be able to change more and/or
incur lower costs either of which will lead to higher profit margins. Our skin is possibly
one of the most amazing parts of our bodies. It protects us from harsh environments and
infections, helps us to feel and experience our surroundings and keeps us warm, or cools
us down, whenever we need it. It's also the largest organ of the human body and needs to
be maintained to help us lead healthy, full lives. If neglected, skin becomes easily
damaged and dry – and not only looks bad, but loses its ability to work properly. The
desire to be clean, active, energetic and healthy is common to every person, whether
young or old, whether rich or poor. Health is more than just physical well being. The
signs of good health – being active, energetic, feeling good, and looking good. Meril
Splash Beauty Soap aims to help people feel good, look good and get more out of life.
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6.0 References
1. Square toiletries website, http://www.squaretoiletries.com/
2. Philip Kotler, Marketing Management, 11th Edition.
3. Mr. Morshad Ullah Talukder,
Sr. Executive (Accounts and Finance),
Square Toiletries Ltd.
Mobile: 01727524137.
4. Md. Masud Hossain,
Executive (HRD)
Square Toiletries Ltd.
A GROUP PROJECT ON VALUE CHAIN ANALYSIS OF MERIL SPLASH BEAUTY SOAP