The History Of The Soap Factory Ltd Marketing Essay

The Soap Factory Ltd, located at 22 Ben Lomond Crescent, Pakuranga, Auckland, New Zealand. The company is a unique soap designer and contract manufacturers. The company as born in 1992 from McLeod’s soaps, New Zealand’s original soap markers which was founded in Dunedin in 1868. Awarded with Quality Certification in 1998, we focus on quality of service as well as product.

Basically we have a series of soaps that we offer our market. Our soaps are a reflection of the customers’ requirements, being environmentally friendly, biodegradable packaging and recipe. The new project that this company is looking forward to lounge is a new brand silken, a kid’s soap, creative soap.

This product is targeted to kids and adults between three types of age groups. Between the age group 7-12 the kids prefer the shapes and appearance of the soap. The age groups 13-25 look for fragrance and how the product is useful to the skin. The age groups of 26 and onwards a go for quality, fragrance, size and the price of the product. In this project the main target market are kids between the ages of 7 to 12.

Our brand is very well known. All of our products are under our brand name “Silken”. We have developed a very strong brand name and we have loyal customers because of our good reputation.

MARKET OF INTEREST

The Soap Factory Ltd, located at 22 Ben Lomond Crescent, Pakuranga, Auckland, New Zealand. The company is a unique soap designer and contract manufacturers. The company as born in 1992 from McLeod’s soaps, New Zealand’s original soap markers which was founded in Dunedin in 1868. Awarded with Quality Certification in 1998, we focus on quality of service as well as product.

Basically we have a series of soaps that we offer our market. Our soaps are a reflection of the customers’ requirements, being environmentally friendly, biodegradable packaging and recipe. The new project that this company is looking forward to lounge is a new brand silken, a kid’s soap, creative soap.

Our brand is very well known. All of our products are under our brand name “Silken”. We have developed a very strong brand name and we have loyal customers because of our good reputation.

This product is targeted to kids and adults between three types of age groups. Between the age group 7-12 the kids prefer the shapes and appearance of the soap. The age groups 13-25 look for fragrance and how the product is useful to the skin. The age groups of 26 and onwards a go for quality, fragrance, size and the price of the product. In this project the main target market are kids between the ages of 7 to 12.

EXTERNAL ENVIRONMENT

DEMOGRAPHY: This product is targeted to kids and adults between three types of age groups. Between the age group 7-12 the kids prefer the shapes and appearance of the soap. The age groups 13-25 look for fragrance and how the product is useful to the skin. The age groups of 26 and onwards a go for quality, fragrance, size and the price of the product.

ECONOMICS: the buying pattern of a customer can change through the situation in the economy. In case of inflation, fluctuation in price, changes in interest rates, a slump, recovery, boom and recession have an impact on the buyers. They would think of the expenditure and get what is necessary; Silken will be recognized through its quality and longer lasting capabilities.

POLITICS AND LEGAL: The Soap Factory Ltd has maintained the rules and regulations and has avoided the use of any unwanted chemicals, or any chemical allergic to skin, or anything that might cause skin damage.

SOCIAL AND CULTURE: Corporate Social Responsibility (CSR) is the responsibility of an organization for the impacts of its decisions and activities on society, the environment and its own prosperity.”(MPI, 2012). It is seen as trendy for soap companies to integrate CSR into its advertising, using slogans to twist the minds of a buyer. The company has also used bio degradable packaging style.

TECONOLOGY: A huge help to the business that makes work easier for the company, Weather it is production of the product, selling or marketing. The Soap Factory Ltd prefers to use computer to store information, make samples of the product and use web to market and sell the product, such as on Facebook and twitter.

COMPETITION ANALYSIS

An analysis of the current competition for Silken centered on the 3 most popular soaps sold in New Zealand market today is presented using SWOT analyses. The weakness and strengths of Silken has been examined as well as the threats and opportunities. The major competition is from Protex, Palmolive, Dove and Lux

CURRENT SITUATION

Our brand is well known and the image of our brand is good. In other words, the company is in a good position and they have a competitive differentiation.  We believe it is important to be different because it leads to profit and long term relationship with customers.

PROBLEM IDENTIFICATION

The problem that Silken would face is entering an overcrowded New Zealand market which the consumer has no idea of the fragrance it holds.

OPPORTUNITY

Because Silken has high competition rate, and needs better marketing it has the prospect of building everything from square one including: image, a name for the product, and strategies to market the product. The company also has the opportunity to export outside NZ in the future comings.

LUX

Lux generally has beauty soap and a range of other products, it targets on both men and women. Lux is normally promoted by TV ads, Print media and is endorsed by models and actresses.

SWOT

KEY Strengths

KEY Weaknesses

Cheap

Competitively priced

Established target market in New Zealand

Lower quality

Lower price can be seen as lower quality

KEY Opportunities

KEY Threats

Can make special soap for kids

Bring shampoo and conditioner using it’s brand name

Competition

DOVE

Normally Dove targets women. Dove is usually promoted by TV commercials endorsed by models.

SWOT

KEY Strengths

KEY Weaknesses

Cheap

Competitively priced

Established target market in New Zealand

Lower quality

Lower price can be seen as lower quality

Does not have the long lasting fruity fragrances

It is not natural or organic

KEY Opportunities

KEY Threats

Can make special soap for kids

Competition

PALMOLIVE

Palmolive is manufactured by COLGATE-PALMOLIVE COMPANY. It has soaps along with other products such as shampoo and conditioners. Palmolive are generally marketed by TV ads, print media, with the product endorsed mostly by models.

SWOT

KEY Strengths

KEY Weaknesses

Good quality product

Brand loyalty

In business for a number of years

Has wide range of products

Expensive

Does not have long lasting fruity fragrances

Failure of a new product line can ruin its brand reputation

KEY Opportunities

KEY Threats

Can make special soap for kids

Make soap from different flavors

Make different soaps for male and female

Competition from lower priced soap

PROTEX

Protex is an anti bacterial soap bar. It comes in large range, for families, and all with different gist. It targets mostly on athletes and people involved mostly in outdoor activities. It is usually endorsed by models and families on TV ads for promotion and better marketing.

SWOT

KEY Strengths

KEY Weaknesses

Good quality product

Brand loyalty

In business for a number of years

Has wide range of products

Anti-bacterial soaps bars and other products such as hand wash

Expensive

Does not have long lasting fruity fragrances

Failure of a new product line can ruin its brand reputation

It is not natural or organic

KEY Opportunities

KEY Threats

Can make special soap for kids

Make soap from different flavors

Make different soaps for male and female

Competition from lower priced soap

SILKEN

Our product is different we provide a unique soap that no other companies has produced it yet. We believe that our product is very important to people and beneficial. Everyone needs it and it is an essential household item. Therefore, this is a good competitive advantage and will lead to a long term profit. Silkens are probably endorsed by models on TV commercials and print media.

SWOT

KEY Strengths

KEY Weaknesses

Good quality product

Brand loyalty

In business for a number of years

Has wide range of products

Anti-bacterial soaps bars and other products such as hand wash

Does not have long lasting fruity fragrances

Failure of a new product line can ruin its brand reputation

It is not natural or organic

KEY Opportunities

KEY Threats

Make soap of different flavors and colors

Make different soaps for male and female

Export the product overseas in future

Competition from lower priced soap

Competition from better brands

PROTEX

High QualityCOMPETITIVE POSITIONING

PALMOLIVE

DOVE

SILKEN

LUX

High Price

Low Price

Low Quality

TARGET MARKETING SEGMENTS PROFILE

Taking the whole country into consideration would be too costly and advertising for the whole country does not fit our product because some people might not be able to afford our soaps because our products are high quality and will have price according to quality. Below is a map of NZ, which shows the target market. These are the areas where people are most likely to be targeted.

DUNEDIN

CHRISTCHURCH

WELLINGTON

AUCKLANDnew-zealand-map.gif

Segmentation by demographics which include variables such as children, adults, gender and income is a good segment to target because it best suits what our product has to offer. Segmentation by behaviour is also considered because people use soap daily and our soaps are gentle enough to be used daily.

Kids- we will provide all types of cool kid’s schemes and cartoon characters, which will changes as the popularity of cartoons to attract kids. Gift options which they can buy in-store as well as custom made online.

Adults- we will provide fruity scents and packaging which will appeal to men and women alike to save advertising costs. Two types of soap will be available for adults, one that is gentle enough to be used every-day and the other one which removes dead skin without the use of exfoliates which is recommended to be used once a week. Gift options will be available either in-store or custom made online.

INTERNAL ENVIRONMENT FACTORS

Financial Analysis

There are many pricing objectives; the one we select will guide our choice of pricing strategy.

Today, the Company reports well-built universal volume increase, compared to its rivals with the continuing growth target. Our global force advances as we again develop universal volume and value share gains in total anti bacterial, determined by its volume and its value share.

Internal Organization and Structure

Manufacturing/ Services Processes

Packaging: The Company is going to use recycled paper as packaging and this will be written on the package, showing that we do care for the environment.

The Use of famous cartoon characters to attract kids.

A more subtle packaging for adults which can appeal to both men and women, with “natural handmade soap” visibly written on it.

Our website and the idea of designing custom made soaps online will be clearly advertised on our soaps. (refer to attached pictures)

Service: Customers have the flexibility to get their soaps custom made, which is a good idea for giving gifts. They get names or any other special messages engraved on the soaps. They can choose from a wide range of shapes, colours and characters on their soaps. As much fun as getting a cake decorated. They can logon to our website and design their own soaps.

Human Resources

Management

Research & Development

Marketing Function

What Media are we going to use to advertise, inform and introduce our product into the market place? Whichever is going to expose our product to the right people;

Social Media: Facebook, Twitter

Television: Channel 2 & 3

Radio: Auckland is the most populated and fastest growing region with an 8.4% growth census on census.

Auckland has the most culturally and ethnically diverse population in the country.

Auckland population earn the second highest personal incomes in the country

As the commercial “heart’ of New Zealand, Auckland contains over one-third of all businesses, most of these are concentrated in the manufacturing, retailing and commerce industries

Newspapers: We will use the News Papers that reach our desired market. NZ Herald.

Magazines: Women’s Weekly.

Location

The Soap Factory Ltd, located at 22 Ben Lomond Crescent, Pakuranga, Auckland, New Zealand. Silken will be manufacture in Pakuranga and a fast delivery service for online orders as we have partnership in New Zealand Couriers Company. Available in all supermarkets, that is, countdown, Pak n Save, Warehouse and FoodTown.

External Relationships

Competitive Positioning

Pricing: Our product is a luxury item, where our product positioning will be in the luxury market.

Quality: Our soap is made of all natural ingredients with no harsh chemicals. We offer money back guarantees for unsatisfied customers.

PROTEX

High QualityCompetitive positioning

PALMOLIVE

DOVE

SILKEN

LUX

High Price

Low Price

Low Quality

Ethical Standing

Silken usually donates money to non profit organization. The company uses bio degradable packages for packing.

Others

The company has been awarded with Quality Certification in 1998.

SITUATIONAL ANALYSIS

Our product is different we provide a unique soap that no other companies has produced it yet. We believe that our product is very important to people and beneficial. Everyone needs it and it is an essential household item. Therefore, this is a good competitive advantage and will lead to a long term profit.

Basically we have a series of soaps that we offer our market. Our soaps are a reflection of the customers’ requirements, being environmentally friendly, biodegradable packaging and recipe.

This product is targeted to kids and adults between three types of age groups. Between the age group 7-12 the kids prefer the shapes and appearance of the soap. The age groups 13-25 look for fragrance and how the product is useful to the skin. The age groups of 26 and onwards a go for quality, fragrance, size and the price of the product. In this project the main target markets are kids between the age group of 7 to 12.

Our brand is very well known. All of our products are under our brand name “Silken”. We have developed a very strong brand name and we have loyal customers because of our good reputation.

Our soap is made of all natural ingredients with no harsh chemicals. We offer money back guarantees for unsatisfied customers. Our product is a luxury item, where our product positioning will be in the luxury market.

Customers have the flexibility to get their soaps custom made, which is a good idea for giving gifts. They get names or any other special messages engraved on the soaps. They can choose from a wide range of shapes, colours and characters on their soaps. As much fun as getting a cake decorated. They can logon to our website and design their own soaps.