Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 1 1.0 Introduction As the final requirement of the BBA program in Independent University, Bangladesh, it is amust for every student to undergo a three months internship program in an organization. Theinterns are required to carry an extensive analysis of real world business problem in thisprogram. Therefore, I had been placed at Advanced Chemical Industries (ACI) Limited and getthe opportunity to see the overall aspects of that organization specifically the consumer brandduring the internship program. Mr. Aminur Rahman, Associate Professor, School of Business,Independent University, Bangladesh was my internal supervisor and external supervisors wasMs. Mosarrat Farhana, Product Executive, Consumer Brand, ACI Ltd. and Mr. Qamrul Hasan,Marketing Manager, Consumer Brand, ACI Ltd.Report Preview The soap markets of Bangladesh are developing rapidly now a day. In our country we can seethe two different segment of soap in the market which are “Health soap” and ‘Beauty soap”.Under health soap segment in existing situation, there are two prominent brands in Bangladeshisoap market which are Lifebuoy and Dettol. In the case of health soap Dettol has gain themaximum market share and then Lifebuoy. Again, under beauty soap segment Lux is the marketleader in existing situation in the Bangladeshi soap market and then Meril, Keya, Aromatic etc.has come under consideration. Moreover, few years back ACI has launched bar soap underbeauty soap segment which was Angelic beauty care soap but this idea was not worked out well.Not only that, ACI has also launched bath soap under health soap segment with two separatecategories which are “SAVLON Antiseptic Soap” and “SAVLON Skin Care Soap” with theslogan of everyday protection from germs. Moreover, at previous time a good number of studieshad been undertaken by ACI to determine the consumers’ perception on SAVLON brand,strength and weakness of the product of this brand, prevailing market opportunities and threatsetc. AC-Nielsen also conducted a focus group discussion in this regard. Through the focus groupdiscussion, consumers’ perceptions regarding the product of SAVLON brand against othercompetitive brands and different strength, weakness, opportunities and threats in the existingmarket have also been found out. So, the company already found out the consumers perceptionof SAVLON brand. Now, through out this internship in-depth interview has been conducted ongaining the consumer insights for a new kind of soap which contains both antiseptic and beauty
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 2care quality in a single soap under the parent brand which is SAVLON. Also, it is found out that,the positive reciprocal effect on vertical brand extension will make the prior nonuser to the userof the parent brand SAVLON for the company ACI. 2.0 Statement of the Problem It has been mentioned earlier that, few years back ACI has been launched soap under both ofthe segment which are health soap and beauty soap. But they were unable to capture themaximum market share than other companies in both of the segment. The reason was that, theywere incapable to compete with the dominant brand Lux under beauty soap category and withDettol and Lifebuoy under health soap category. Furthermore, they were incapable because oftheir inconsistency in distribution and lack of product uniqueness. That is why, the company hascome up with a new idea and they want to launch a new kind of soap which will contain bothantiseptic quality and beauty care quality. Then, this vertical brand extension will make thereciprocal effect on the parent brand. So, here the studying issue is that, with the help of in-depthinterview we want to check out first the existing perception level of consumers’ about using barsoap and then it will come to the main issue which is the acceptance level of the consumers forthe upcoming new kind of bar soap. Thus, these insights will reflect to explore the theme thatreciprocal effect on vertical brand extension will be positive or negative towards the parentbrand. Finally, it will be further anticipate that whether this new kind of soap make the SAVLONbrand more popular, will make the non-user become user for the parent brand under bar soapdivision and ultimately will increase the market share for the brand SAVLON. 3.0 Purpose of the Study The purpose of this study primarily is to explore the knowledge on bar soap usage pattern andthen to gain the consumer insights for the acceptance of a new kind of soap which will containboth antiseptic quality and beauty care quality. Also, the information will lead to draw the
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 3conclusion for the reciprocal effect on vertical brand extension for the parent brand Savlon in thecontext of Bangladesh. 4.0 Limitations of the StudyStrength Limitations: Adequate efforts have been taken to accomplish the research according to the objectives. Butas the research team is consisted of only one member therefore it was not possible to cover moreadditional areas, which would obviously give better result.Cost limitations: The in-depth interview should be conducted with the help of experience moderator but it wasvery cost sensitive. So, the interview was taken by self which might crept few errors on theresearch.Time Limitation: The type of the study required a detail interview of both man and women residing at homes.Thereby a tremendous difficulty was faced in getting access to different houses, especially in theabsence of some male and female during daytime whom are service holder. Again these peopleusually fallback from different offices or businesses after dusk and enjoy their times at home, sotaking interview during that time became an irritation for them. On the other hand, maximum ofthe female whom were housewives residing at home found busy after 11 am with their dailyroutine jobs like cooking. Therefore a very limited period of day was found suitable forconducting the survey. Many times the respondents were found after answering few questionsleft the interview for looking after their housework, which resulted in discontinuity in interviewand the wastage of time and effort. Also, the interview was conducted only on the people ofDhaka city for the time limits of internship periods.Literature review limitation: As this study has been done first time in Bangladesh, the literature reviews were not veryhealthy enough. Moreover, there was very little information found of some of the topic for theliterature review.
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 4 5.0 Literature ReviewBrand A brand is a product, service, or concept that is publicly distinguished from other products,services, or concepts so that it can be easily communicated and frequently marketed. Moreover, abrand name is the name of the distinctive product, service, or concept. Branding is the process ofcreating and disseminating the brand name. Branding can be applied to the entire corporateidentity as well as to individual product and service names. Brands are usually protected from use by others by securing a trademark or service mark froman authorized agency, usually a government agency. Before applying for a trademark or servicemark, people need to establish that someone else has not already obtained one for the name thecompany has proposed. Once the company found that no one else is using it, the company canbegin to use this brand name as a trademark simply by stating that, it is a trademark using the"TM" symbol where it first appears in a publication or Web site. After the company receives thetrademark then it can use the registered symbol after the trademark. Brands are often expressed in the form of logos, graphic representations of the brand. Incomputers, a recent example of widespread brand application was the "Intel Inside" labelprovided to manufacturers that use Intels microchips. A companys brands and the publics awareness of them are often used as a factor inevaluating a company. Corporations sometimes appoint market research firms to study publicrecognition of brand names as well as attitudes toward the brands. However, today brand is what they do for people that matters much more, how they reflectand engage them, how they define their aspiration and enable them to do more. Powerful brandscan drive success in competitive and financial markets, and indeed become the organizationsmost valuable assets.
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 5Brand Extension Brand extension or brand stretching is a marketing strategy in which a firm marketing aproduct with a well-developed image uses the same brand name in a different or same productcategory. Moreover, brand extensions are further described as, the stretch of the establishedfranchise to a different or same product class (Aaker and Keller, 1990) have become anincreasingly popular way of gaining growth ( Springen and Miller, 1990). Organizations use thisstrategy to increase and leverage brand equity. A brands "extendibility" depends on how strong consumers associations are to the brandsvalues and goals. In 1990s, 81% of new products used brand extension to introduce new brandsand to create sales. Moreover, launching a new product is not only time consuming but alsoneeds a big budget to create awareness and to promote a products benefits. Brand extension isone of the new product development strategies which can reduce financial risk by using theparent brand name to enhance consumers perception due to the core brand equity (Chen and Liu,2004). While there can be significant benefits in brand extension strategies, there can also besignificant risks, resulting in a weak or severely damaged brand image. Poor choices for brandextension may dilute and deteriorate the core brand and damage the brand equity. Most of theliterature focuses on the consumer evaluation and positive impact on parent brand. Some studiesshow that negative impact may dilute brand image and equity. In spite of the positive impact ofbrand extension, negative association and wrong communication strategy do harm to the parentbrand even brand family. Given the large literature on brand extension success factors, and as an aid to review, thevarious components are grouped as: • Parent brand characteristics; • Brand extension characteristics; and • Consumer’s characteristics.
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 6 Brand extension strategy comes in two primary forms which are horizontal and vertical. Inhorizontal brand extension circumstances, an existing brand name is applied to a new productintroduction in either a related product class or in a product category completely new to the firm(Sheinin and Schmitt, 1994). In addition, in a vertical brand extension, on the other hand,involves introducing a brand extension in the same product category as the core brand, but at adifferent price point and quality level which is originally described by Chen and Liu (2004) withreference to Keller and Aaker (1992) and Sullivan (1990). Furthermore, literature on extensions dominantly addresses the question of how the parent orcore brand helps the new product during its launching stage. Also, literature touches on thepossible reciprocal effects of the new product launching on the equity of the core brand.Reciprocal Effect Reciprocal effect could be positive or negative. Positive reciprocal effects exist only when anaverage-quality parent brand (in comparison to competitors) introduces a successful extension(Keller and Aaker, 1992). On the other hand, negative reciprocal effects can occur when theextension similarity to the parent brand is extremely low. However, this can also happen whenthe extension is highly similar to the parent brand, but not noticeable. Reciprocal effectmanipulates the brand extension positively or negatively which reveal on the parent brand. Whenthe brand extensions are positively manipulated that time the non-users of parent brand becomesthe users of that brand and sometimes they turn into loyal customer. Again, if it is negativelymanipulated then the parent brand might loose their loyal customers.Bar Soap “Soap is a surfactant used in conjunction with water for washing and cleaning that is availablein solid bars and in the form of a viscous liquid”(whatis.techtarget.com/definition, 2008) .Chemically, soap is a salt of a fatty acid. Traditionally, soap is made as the result of a reactionbetween fat and lye (sodium hydroxide), potash (potassium hydroxide), and soda ash (sodiumcarbonate), which are all alkalis historically leached from hardwood ashes. The chemicalreaction that yields soap is known as saponifications. The fats and the bases are hydrolyzed by
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 7water; the free glycerol heads bond with the free hydroxyl groups to form glycerin and the freesodium molecules bond with the fatty acid tails to form soap. Again, we are saying that we are concerning only on bar soap. Bar soap means the soap whichis in solid form. Moreover, bar soaps are still widely used. With regard to cost and aesthetics,wear rate (also called use up rate) is an important property. Consumer perceived economy of barsoaps is determined by the amount of mush or paste that occurs as the bar surface hydrates. Themush is considered undesirable by consumers since it is easily removed and washed off of thebar surface, leaving the user with less usable soap. Bar use up rate is another indication of theeconomy of the bar soap. Use up is determined by the physical abrasion (mechanical action) onthe bar and is related to bar hardness and shape. In addition to the economy of a bar soap, there is also a desire to maintain good foaming andcleaning abilities. The quality and quantity of lather produced by washing with a bar isassociated with the cleansing ability of the bar. Other qualities desired are good rinsability,mildness to the skin, shape, stability, ingredients and delivery of fragrance to the users skin. Thecombination of an efficient bar soap with effective cleansing and bar aesthetics has been oftenattempted.Health soap Health soaps markets are covering huge ground for business. Health soaps are divided intohealth care and health freshness category. Under health care the marketer can produce dermaprotection soap and natural care soap. Again, under health freshness the marketer can produceanti-bacterial soap and active-balance soap. In health soap market, there is nothing more whichcan differentiate uniquely or where more value can added to soap.Beauty Care Soap Beauty care soaps are communicating only to enhance beauty. It can be luxury soap,traditional soap, moisturizing soap etc. Though it is a very short arena for business but in realitymost of the companies are doing business utilizing this field. Here, many variables can be addedto a soap and can differentiate its position in a unique area.
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 8 6.0 Research QuestionsThis study proposes to examine the following research questions:R.Q.1 What is the general overview of using a bar soap among the consumers mind?R.Q.2 How the consumers will accept or react towards the upcoming new kind of soap whichwill contain both antiseptic quality and beauty care quality?R.Q.3 Does this new kind of soap uphold to positive reciprocal effects on vertical brandextension of the parent brand “SAVLON”? 7.0 Research MethodologyResearch Design The purpose of this study is to gain consumer insights about the fundamental idea of usingbath soap and then monitoring the acceptance of the proposal of such a new kind of SAVLONbath soap which is containing both antiseptic quality and beauty care quality in the context ofBangladesh. Moreover, using the above information the study will also pursues the reciprocaleffect of vertical brand extension on the parent brand SAVLON. As this is a new concept inBangladesh so that an exploratory research will be more appropriate for that.Research Approach The respondents will be the consumer of bath soap (bar shape) whom are interested tocooperate. To collect the data the laddering technique under the in-depth interview method willbe preferable.Sampling Method The in-depth interview for this study will be limited to Dhaka city only due to certainlimitations. Also, it has been mentioned earlier that, the interview will be only on the consumerof bath soap. Moreover, the researcher will have to ask the respondents whether they fall into the
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 9category or not. If they fall then they will be interviewed for 30 minutes. The sample size will be30 for this study.Data Collection The primary data will be collected from the buyer and user of bath soap (bar shape).Moreover, these data will be gathered directly from the respondents through an in-depthinterview. In addition, the secondary data will be colleted from ACI stuffs, different articles andfrom internet.Data Analysis Method The data analysis of this research will be mostly represented on qualitative manner. It hasbeen mentioned earlier that, the data will be gathered by in-depth interview so most of theanalysis will be qualitative. However, there will be few quantitative solutions. For efficientanalysis and presentation, application packages like Office XP (Microsoft Word, MicrosoftExcel) will be used.
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 10 8.0 Results The results are derived from the questionnaire of in-depth interview. The questionnaire hasbeen already given on the Appendix (A) and the outcomes are given in the followingsimultaneously: • Soap Usage Pattern Regular user of soap 6.67% 90.00% 95.00% Yes Male Yes Female No Both male & Female Figure 1: Regular user of soap From the above pie chart we can see that, except 6.67%, 90.00% male and 95.00% female respondents replied positively that they use soap regularly for bathing. However, among male and female who is not use soap on regular basis because they feel that soap trim down the smoothness of skin.
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 11 • Soap Usage Purpose Purpose of using soap 7% 3% 3% 37% 23% 27% Clean Germ Protection Beauty Care Health Conciousness Feel Fresh Feel Skin Smooth Figure 2: Purpose of using soap From the above pie chart we can see that, 37% people are using soap first and foremost for cleaning purpose. Then, 27% people recommended about germ protection and 23% people suggested about beauty care. After that, few more variables come to their mind such as, they use soap for feeling fresh, for health consciousness and for feeling skin smooth. So, cleaning is the basic purpose which is apparent but there are two more key purposes for using soap which are protection from germs and beautification.
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 12 • Variety of Soap Usage Variety of Soap Use 3% 10% 10% 38% 3% 3% 33% Antiseptic Beauty Care Herbal Medicated Skin Care Flower Extract Fruit Extract Figure3: Variety of soap use From the above doughnut chart we can see that, among male and female respondents 38% people advocated for antiseptic soap and 33% people advised for beauty care soap. After that, 10% people directed about both skin care soap and flower extract soap. Also, there is little number of respondents which is only 3% people recommended about medicated soap, herbal soap and fruit extract soap. So, it is clearly viewed that, antiseptic soap and beauty care soap are more preferable among all the respondents.
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 13 • Physical and Functional Attributes of SoapPhysical attributes of soap Physical Attributes of Soap 45.00% 40.00% 40.00% Respondents Percentage 35.00% 30.00% 25.00% 23.33% 20.00% 16.67% 15.00% 10.00% 10.00% 6.67% 5.00% 3.33% 0.00% Ingredients Foaming Fragrance Color Shape Duration Different Attributes Physical Attributes Figure4: Physical attributes of soap On the account of physical attributes of soap, from the above column diagram we can see that, among male and female respondents most of them prefer for ingredients at the first position. Second, they prefer foaming of the soap. Third, they prefer fragrance of the soap. Fourth, they prefer color of the soap. Fifth, they prefer shape of the soap. Finally, they prefer duration of the soap i.e. the length of the time they can use a single soap.
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 14 Functional attributes of soap Functional Attributes of Soap Respondents Percentage 30.00% 26.67% 25.00% 23.33% 20.00% 20.00% 16.67% 15.00% 13.33% 10.00% 10.00% 6.67% 5.00% 3.33% 0.00% n e t g g g l io g en ria ar in in in in ct hm el te iz C ge an te ur Fe ac ty ro t-a le ris st au tib C rP h An oi ou es An Be M do N Fr O y od rB ou -h 24 Different Attributes Functional Attributes Figure5: Functional attributes of soap On the account of functional attributes of soap, from the above column diagram we can seethat, among male and female respondents most of them prefer cleaning capability of the soap atthe first position. Second, they prefer moisturizing capability of the soap. Third, they preferantibacterial capability of the soap. Fourth, they prefer beauty care capability of the soap. Fifth,they prefer fresh feeling capability of the soap. Sixth, they prefer nourishment capability of thesoap. Seventh, they prefer 24-hour body odor protection capability of the soap. Last but not theleast, they prefer anti – ageing capability of the soap.
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 15 • Influencing Factors in New Soap Purchase Decision Influencing Factors in New Soap Purchase Decision 100% Shopkeepers Opinion, 3.33% Advertisements, 3.33% Pack Size , 3.33% 90% Availability, 6.67% Packaging, 6.67% Respondents Percentage 80% Price, 10.00% 70% Ingredients, 10.00% 60% Beauty Care Quality, 50% 23.33% 40% Antiseptic Quality, 30% 23.33% 20% 10% Brand, 26.67% 0% 1 Different Factors Figure 6: Influencing factors in new soap purchase decision From the above column diagram we can see that, while purchasing new soap both male and female respondents firstly look for brand and their percentage is 26.67%. Then, secondly they prefer both antiseptic quality and beauty care quality and for these the percentage is 23.33%. After that, 10.00% consumers seek for both price and ingredients. Again, 6.67% people search for both availability and packaging. Finally, only 3.33% people hunt for few other factors which are pack size, advertisements, and shopkeeper’s opinion. • Acceptance of Antiseptic Soap Most of the male and female consumers have been agreed to use antiseptic soap for family. The reason they proposed, it kills the germs and ensures personal hygiene. However, there is little number of people who don’t think the need for antiseptic soap for their family.
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 16 • Loyal Consumers of Antiseptic Soap and Recommended Brand From the interview it is observed that, more than average numbers of people are loyal consumers or using a fixed brand of antiseptic soap at present time. Moreover, there are few male and female respondents whom are not loyal for using any brand of antiseptic soap because some are not loyal towards any brand and some are eager more about beautification and other things. Preferable Brand of Antiseptic Soaps 60.00% 55.00% 50.00% Respondents percentage 40.00% 40.00% 30.00% 30.00% Male 30.00% Female 20.00% 20.00% 15.00% 10.00% 10.00% 0.00% 0.00% Dettol Savlon Lifebuoy Bactoral Different Antiseptic Soaps Figure 7: Preferable brand of antiseptic soaps Among both male and female consumers most of the people use Dettol antiseptic soap. Then, Lifebuoy stands on second position and after that Savlon is preferable to the consumers. Moreover, a small number of male consumers vote for Bactoral soap.
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 17 • Acceptance of Beauty Care Soap Majority of the female respondents agreed on the necessity of beauty care soap than male.Moreover, some housewives said that they buy beauty care soap for their teenage daughter. Thereason behind of the necessity of beauty care soap is that, beauty care soap specially articulatedfor enhancing beauty. It refers that, this kind of soap delivers the benefit like making skinbrighter, make the skin smooth and moisturize, furnish extra nourishment etc. • Loyal Consumers of Beauty Care Soap and Recommended Brand From the interview it is observed that, average numbers of female respondents are loyal consumers or using a fixed brand of beauty care soap at present time. Moreover, except few, most of the male respondents are not loyal towards any brand of beauty care soap. Preferable Brand of Beauty Care Soap 80.00% 70.00% 70.00% Respondents percentage 60.00% 60.00% 50.00% Lux Meril 40.00% Aromatic Keya 30.00% 20.00% 15.00% 10.00% 10.00% 5.00% 0.00% 0.00% 0.00% 0.00% Male Female Gender basis Distribution Figure 8: Preferable brand of beauty care soaps
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 18 Most of the female respondents are loyal towards “Lux” brand for beauty care soap. Then, rest of the female respondents choices are scattered among other beauty care soaps such as Meril, Keya and Aromatic. Though male respondents are not loyal towards any beauty care soap, somehow they loyal for only one brand which is Lux. • Preference for Antiseptic Quality and Beauty Care Quality in One Soap Preferance for Antiseptic and Beauty Care Quality in One Soap Both male & Female No, 6.67% Male Yes, 90.00% Female Yes, 95.00% Figure 9: Preference for antiseptic and beauty care quality in one soap Almost equal numbers of female and male respondents are expecting two separate categories which are antiseptic quality and beauty care quality in a single soap. Moreover, they are very enthusiastic to buy it. Because, they think this soap will be deliver two benefits at a time. Also, using this soap it will be more cost effective because there is no need to buy two separate quality soap. However, only insignificant numbers of male and female respondents are not considering this fact. So, there is a possibility of launching this new kind of soap which will hold both antiseptic and beauty care quality in a single soap.
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 19 • Preferable Price for Having Soap Containing Antiseptic and Beauty Care Quality Both male and female respondents are preferred a price range of 25tk – 30tk for a 100 gm of soap which has both antiseptic quality and beauty care quality. Basically, consumers are preferred this price range because the existing soap they purchase (whether it is antiseptic soap or beauty care soap) are priced within the range of 12tk – 22tk. As this soap will deliver two quality at a time so that they can expense some extra amount for having it. So, the new soap’s price should be within the range of 25tk- 30tk for satisfying the need of the middle class to upper class people. 9.0 Discussion Analyzing the above result we can discuss like that, basically people are using soap primarily for cleaning purpose then for germ protection and beauty care. That is why; under antiseptic soap Dettol soaps has noticeable demand in the market and it is widely consumed by the loyal consumers of antiseptic soaps. Also, under beauty care soap Lux soaps has visible command in the market and it is widely consumed by the loyal consumers of beauty care soaps. Moreover, at the time of purchasing new soap most of the people initially look for brand then antiseptic quality, beauty care quality and so on. So, it can be recommended like that, brand is the most influential factors when new soaps are usually purchased and the marketers have to create a clear and strong brand image on the consumers mind before launching or promoting any product. Furthermore, in the case of physical attributes most of the people given first priority for ingredients while using any soap. Then, it has been prioritized as foaming, fragrance etc. Again, in the case of functional attributes most of the people given first priority on cleaning capability while using any soap. Then, it has been prioritized as moisturizing capability, antibacterial capability; beauty care capability etc. In short, now it is visible that, while choosing any physical attributes of soap people are concern for ingredients which is also reflecting when they choose functional attributes i.e. whether the soap has antibacterial capability, moisturizing and beauty care capability. After that, we can synchronize like that, there is a huge prospect of such a new kind of soap which containing both antiseptic quality and beauty care quality because it will deliver two benefit
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 20 at one time. Not only the people are willing to buy that product but also they are willing to buy it at higher price i.e. within the range of 25tk – 30tk for 100 gm pack size soap. However, as we have mentioned earlier that brand is the most influential factor while purchasing any new soap, so that brand should be highly focused at the initial stage.Now from the above discussions, we can derive the answers for the research questions which aregiven in the following: 1. Generally, at bathing time consumers use soap regularly for the three major purposes which are cleaning, germ protection and beauty care. That is why; most of the people usually purchase either antiseptic soap or beauty care soap. Moreover, at the time of purchase new soap first and foremost people look for brand. If the soap is from well known brand then it is more preferable to buy. So, brand is the most influential factor in new soap purchase decision. Furthermore, when people using any soap under physical attributes they look for ingredients, fragrance, color etc. and under functional attributes they look for antiseptic quality, beauty care quality, moisturizing quality etc. 2. Consumers have given perceptible positive response for the upcoming new kind of soap which contains both antiseptic quality and beauty care quality. People believe this soap will encounter two needs at the same time. So, this will be a positive vertical brand extension of the parent brand “SAVLON” for the company ACI Ltd. 3. As this will be a positive vertical brand extension so that the reciprocal effect will also be positive towards the parent brand SAVLON. That means, this new kind of Savlon bath soap will make the non-user become user for the parent brand SAVLON under bar soap division. In that way, it will be a successful extension which will also increase the market share for the parent brand SAVLON. 10.0 Significance of the Study Bangladesh has already developed a very good bar soap market. Under bar soaps prior ACIhas launched soap both for the health soap segment and beauty soap segment but they wereunable to gain most of the market share than other companies. This study will help us to knowthe consumer preference of bar soap which will ultimately find out the acceptance to make the
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 21new kind of soap which will contain both antiseptic quality and beauty care quality for theBangladeshi soap market. Moreover, it will also help the company to generate profit with theincrease of market share. 11.0 Recommendation Above all, from this exploratory study we can recommended like that, within the conscious orunconscious mind consumers are basically need two kind of soaps which are antiseptic soap forthe protection from germs and beauty care soap for beautification. So, the upcoming new kind ofbar soap which contains both antiseptic and beauty care quality will achieve terrific success inthe Bangladeshi soap market. Moreover, the company ACI will get a successful vertical brandextension for their parent brand Savlon with the positive reciprocal effect. As we have mentionedearlier, positive reciprocal effect will eventually build the non-user become user of the parentbrand Savlon. Also, it will increase the market share for Savlon brand. As from the interview wefound that, brand is the most influential factors in new soap purchase decision so this will be anexcellent opportunity for the company. Because Savlon brand is already very popular in front ofthe consumers and the only things the company have to do they have to focus more on productdifferentiation or product uniqueness. At the end, one more thing should be mentioned that, thisis an exploratory study and it has only revealed the consumer insights for the upcoming new kindof soap. Though, the outcomes are positive according to the anticipation but it has been donemostly on qualitative manner. At the end, there is a requirement for further survey in all overBangladesh and immense quantitative analysis before launching this new kind of Savlon bathsoap.
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 22 12.0 Research Timeline 2008 February Information search, problem statement and purpose of the study writing. 2008 March Literature review writing and taking in-depth interview 2008 March Research question writing and taking in-depth interview 2008 April Research methodology, analysis and rest of the report writing 2008 May Submission of internship report
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 23 ReferencesAaker, D.A. and Keller, K.L. (1990), “Consumer evaluations of brand extensions”, Journal of Marketing, Vol.54 No. 1/90, pp. 27-41.Chen and Liu (2004), “Positive brand extension trial and choice of parent brand” Journal of Product and Brand management, Vol. 13, pp.25-36.Definition (2008), Retrieved from “whatis.techtarget.com/definition/0,,sid9_gci211703,00.html”Sheinin, D.A. and Schmitt, B.H. (1994), “Extending brands with new product concepts: the role of category attribute congruity, brand effect, and brand breadth”, Journal of Business Research, Vol. 31 No. 1, pp. 1-10.Springen, K. and Miller, A. (1990), “Sequels for the shelf”, Newsweek, 9 July, pp. 3-42.
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 24 Appendix A Questionnaire for In-Depth Interview(This interview is only for the educational purpose and all the information about the respondents will be kept confidential) • Do you use soap regularly for bathing? Ans.: • What are the purposes behind for using soap? Ans.: • What kind of soap do you usually use? Ans.: • When you are using a soap which physical and functional attributes you prefer most? Ans.: • What are the factors that influencing you at the time of purchasing new soap? Ans.: • Do you think antiseptic soap is necessary for family? Why? Ans.: • Do you use any fixed brand of antiseptic soap? Which brand? Ans.: • Do you think beauty care soap is necessary for family? Why? Ans.: • Do you use any fixed brand of beauty care soap? Which brand? Ans.: • If you get a soap which contains antiseptic and beauty care quality, will you buy it? Why? Ans.: • At what price will you prefer to buy this soap which contains both antiseptic and beauty care quality? Why? Ans.:
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 25Name:Gender: Male FemaleAge: ……………………….Profession: Service Business Housewife Student Others (Please mention)…………………Monthly Income: Below 15,000 15,001 to 50,000 Above 50,000Total family members: ……………..***These questions are only to give an idea about the type of information expected to begathered from the in-depth interview. The patterns of the questions may be changed based oncircumstances and some answers form the interviewee. Some additional questions may be addedfrom the conversation. THANK YOU VERY MUCH!! I really appreciate your time and effort for this interview.
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 26 Appendix B Profile of Advanced Chemical Industries (ACI)Company Preview: ACI Limited is one of the leading companies in Bangladesh. It was established as a subsidiaryof Imperial Chemical Industries (ICI) plc, U.K. in 1968. At that time it was one of the oldestindustrial units in our country. After the liberation war, the enterprise was declared ‘abandoned’.Then it had been incorporated in Bangladesh on the 24th of January 1973 as ICI BangladeshManufacturers Limited as a subsidiary of ICI. On 24 June 1973, the factory restarted itsoperations under the name ICI Bangladesh Manufactures Limited. On the 5th of May 1992, ICIPlc divested 70% of its share to local (Bangladeshi) management and hence ACI Limited cameinto existence. At present ACI is a leading corporate body in Bangladesh. It is a Public Limited Companywith a total number of 15,550 shareholders, among which there are six foreign as well asfourteen local institutional shareholders. The company is diversified in to six major businesses.Besides, the company has a large list of international associates and partners with trade andbusiness agreement. ACI is the first organization in Bangladesh to earn both the ISO 9001 certificate for QualityManagement System in 1995 and the ISO 14001 certification on Environmental Management in2000. It is a transparent and customer focused company. It always strive for innovation,continuous improvement and never compromise with the quality. Today ACI Limited is one of the fastest growing companies in Bangladesh. The Companyconsists of the followings divisions: Pharmaceuticals Division
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 27 Consumer Brands Division Agro Division o Crop Care and Public Health o Animal Health Seed & Biotech Division Diagnostics and Medical Devices DivisionPresent Market Standing of ACI Limited ACI has highly motivated productivity conscious, devoted and innovative work forces. Mostof its products are doing well. ACI’s market standing at present is: • No 1 in seeds business. • 3rd in Crop Care & Public Health. • 5th in Animal Health business. • 9th in Pharmaceuticals. • Brand leader in household insecticides & antiseptics.Subsidiary Companies ACI Trading Limited: This is a 60% owned subsidiary. ICI, Zeneca, Exxon, Stahl are leadersin their respective fields and ACI have excellent market share of their products in BangladeshThe major responsibilities of ACI Trading are: • Representing various international companies • Procuring raw materials ACI Formulations Limited: The factory at Gazipur of ACI Formulations Limited, a 100% owned subsidiary of ACI Limited. It enjoys tax holiday status for its manufacturing activities. It also undertakes: • Seed Storage
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 28 • Aerosol filling • Coconut hair oil canning for which an overhead charge is recovered from the respective businesses • ACI Mosquito Coil ProductionPhysical Facilities Pharmaceuticals and some Consumer Brands production facilities at Narayangonj. Other Consumer Brands production facilities at Rajabari Leased experimental fields for Agro Seeds progeny trials. Contract manufacturing used for production of soaps.Distribution o Total 151 distributors across the country. o Emphasis on rural coverage. o 19 serving depots throughout the country. o Own fleet of 65 vehicles plying round the clock.Above all, I have done my internship under consumer brand division and it is the time now todiscuss about it briefly:Consumer Brands Division: This division, "An Emerging Tiger" of ACI Limited was born on 01 January 1993. Its stableboasts of leading brands like, Aerosol and Savlon leverage the other imported brands to achievesecond and third positions in the market. Manufacturing facility at Narayanganj and strongdistribution network throughout the country meets the growing needs of consumer demand. Thisbusiness accounts for 38% of ACIs turnover, which has increased by 52% to Tk. 542 millionover last year. Angelic range of personal care products and Colgate-Palmolive range of oral careproducts contributed to this increase.Mission To become one of the top most consumer product marketing companies in the country.
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 29 To associate with any one of the major international Companies having excellent reputation and market acceptability, around the globe.Product List ACI Angelic Air Freshener. Hygiene Range: o Savlon Liquid and Cream Antiseptics o Savlon Hospital Concentrates o Savlon Liquid Hand wash o Savlon Bar Soaps Household Insecticides: o Aerosol Insect Spray o Mosquito Coil Toiletries: o Vanish Toilet cleaner o Angelic Beauty Soap o ACI Coconut Hair Oil o Savlon Femme Sanitary Napkin. Foods: o ACI Pure Spice o ACI Pure Flour etc.Imported Products Marketed Oral Care products: Colgate Palmolive oral care range
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON. 30 Hair Care products: a)Vatika Hair Oil b) Dabur Vatika Shampooc) Dabur Amla Hair Oil Food Products: a)Dabur Honey b)Haldirams Food range.Health Aid Products: Canderel Low Calorie Sweetener