With the demise of public bath houses, bathing and washing became a luxury only the rich could enjoy. However, soap making remained an important activity for both the textile industry and apothecaries. People who carried on the arduous work of making soaps for personal use tended also to make candles since some of the same raw materials are used in both products.
In short, throughout history, soap use for personal hygiene was medically motivated. However, short-cuts in manufacturing techniques achieved in the 19th century resulted in two important developments:
First, a new process, using sodium hydroxide, made for a hard rather than liquid product that was easier to store and ship.
Second, soap became easier and cheaper to make and thus became more affordable and popular.
The result was entirely predictable: public hygiene in more affluent areas of the world experienced a quantum leap.
Soap making is a serious occupation requiring some understanding of chemistry. Traditionally, the manufacturing of soap was a lengthy process with a considerable number of unpredictable stages. We can appreciate the difficulties if we realize that soap results from a chemical reaction between an acid and base that causes "saponification" to occur.
Typically, the acid portion of soap comes from a fat, either an animal or a vegetable fat. The alkali or base is the more precarious component because it was usually made from ashes, basically any ash from any burned organic material, but usually from wood used in cooking fires. When water drips on the ash, a brown liquid forms whose exact chemical properties would have been difficult to judge prior to the advent of pH testing devices.
"Saponification" is another word of Latin origin. It refers to Sapo Hill, which according to legend is a place above the Tiber where animal sacrifices were made though some think Mount Sappo was a place in Greece. Women washing their clothes in the river below this place found that less effort was needed to clean them where there was run-off from the temple on the hill. What had happened was that fat had boiled over into the fires and remained in the ashes. When the residues of the burnt offerings were exposed to rain water, the mixture of fat and ashes formed a "natural" soap that traveled into the river below where the sacrifices had been performed.
1.0.2 The Soap Making Process
In the table below, the basics of soap manufacture are summarized, but real soap making is either an art or a science. Trial and error can be very frustrating. Adventurous people will want to have a recipe with specific instructions and proportions. They will also need a bit of equipment.
As can be deduced by the notes in the table, soap should have a neutral pH. It should not burn the skin. It should also be made from pure ingredients so let's discuss the ingredients.
1.0.2.1 Animal Fat:
Most inexpensive soaps are by-products of the meat packing industry. There are, however, a large number of reasons for preferring vegetable-based soaps over animal ones, not the least of which is that toxins, including synthetic hormones used to bulk up animals, tend to accumulate in fat tissue. If this were not a cogent enough argument, it is fairly easy to demonstrate that animal fats tend to clog pores more than vegetable oils. Even going back many centuries, soaps made from vegetable oils, like Castile soap, were regarded as superior to those made from lard.
Animal fat has to be "rendered" or purified. This involves cooking and odor. Meat has to be separated from the fat. This is usually done by heating the fat so that the cracklings separate. The meat looks like it has been cooked, which, of course, it has. The meat must be removed. Sometimes, water has to be added so that it absorbs the impurities. Then, the "soup" has to cooled, usually slowly, so that the fat separates and rises to the top while the heavier parts sink. The fat is then skimmed off. If the fat still has odor and impurities, the process has to be repeated.
1.0.2.2 Vegetable Oils:
In Spain, there was a tradition of fine soap making, called Castile because of the place name. These soaps used mainly olive oil. Today, coconut oil, sometimes called coconut butter, is used in many soaps because it lathers nicely and is almost odorless. However, almost any vegetable oil can be used. The more common ones are almond, avocado, jojoba, palm, and shea butter.
1.0.2.3 Lye Water:
As noted, this is made by pouring or dripping water over ashes. Different woods or other organic materials produce variations in color. Soft water, i.e., rain or spring water should be used. If the solution does not have a high enough pH, it needs to be poured over more ash. If it is too corrosive, more water needs to be added. This is a time consuming process that requires burning one's own organic materials over an open fire or in a cast iron pot. If a feather dissolves in the lye, the pH is probably about right. Some try floating eggs or potatoes in the brew. These objects should float so that half their mass is below the water line.
This kind of base will make a soft soap, not a hard soap.
1.0.2.4 Caustic Soda:
Sodium hydroxide is a nasty chemical that requires special handling, like safety goggles and gloves. It was introduced in the 19th century by French chemist named Nicolas Leblanc (1742-1806) and improved by a Belgian chemist, Ernest Solvay (1836-1922), who changed the nature of the soap and impacted the industry radically. Basically, the newer methods substituted sodium hydroxide for the lye water made from potash. The result was a hard soap that was easy to store and ship. Soap making moved from the farm to industrial manufacturers who realized huge profits from the recycling of animal fats into commercially viable cakes that were easy to sell.
1.0.2.5 Other Ingredients:
As everyone knows, there can be a lot of ingredients in soap: chemical stabilizers, preservatives, fragrances, vitamins, seaweed, corn, oatmeal, pumice, aloe, dyes, milk, fruit or berries, cucumbers or carrots or other vegetables, exotic oils, beeswax, herbs and flowers . . . Each ingredient changes the chemistry of the bar of soap. Let's see how clear I can be. Milk, from goats or other animals, counts towards the acid (and water) component of the soap. Aloe gel counts towards the base component and enhances the disinfecting properties of the soap.
Intuitive people as well as those who are cutting edge in new ecological developments must realize that each constituent not only has to go through some process to prepare it for use in the soap but each one changes the pH of the soap—and our environment—because even if run-off today does not start in a temple where animal sacrifices are performed, it starts with animal sacrifice and ends up laced with antibiotics and derivatives of the petrochemical industry that eventually end up in sewage and septic systems.
1.0.3 Commercial Soap
Dial is a good example of a commercial soap. It is produced by Armour, but it is a truly distant cousin of Borax, a cleanser that went into production after the discovery of vast deposits of borax in Death Valley during the Gold Rush in 1880. The Armour family went into the soap business eight years later. Then, it produced a scouring pad for aluminum cookware called Brillo (1913). Purex began in a garage in Los Angeles in 1922. Enter the meatpacking industry: Dial is introduced in 1948 as the first antibacterial soap. The ad campaign is enormous and promises 24-hour protection from bacteria-causing odors. Next comes Vienna sausage in aluminum containers . . . beginning to see a flash back of your childhood?
About Darbar Soap Pvt. Ltd.
The pioneers in soap making in Pakistan:
Darbar soap was the leading manufacturer of soap in Karachi and interior Sindh with a well known brand logo of “101”. It was established in year 1949. They are the pioneers in introducing Semi-Boiled soap plant in the history of soap industry in Pakistan. Further they introduced the newest technology that resulted in the installation of the Italian Automatic Plant named “Mazzoni” that made the “DARBAR SOAP WORKS” unique in the history of soap manufacturers in Pakistan. In 2001-2002 the turnover was over $ 60 million per annum.
2.0.1 Mission Statement
To fulfill the laundry hygiene requirements of the soap industry of Pakistan efficiently, effectively and profitably, through products of higher quality and lesser prices.
3.0 Competition Faced
3.0.1 THE MARKET
Detergent producing firms dominates Pakistan’s laundry market and those who availing this opportunity have an edge over the traditional firms. 101 is among those traditional firms. The market is divided into several sub markets (soaps, detergent, noodles etc). 101 share 10 to 15% of the total market shares.
Detergent market: the detergent market is in high demand. It is in the maturity stage. The market dominators include Surf excel, Arial, Bright, Wheel and others. The detergent to soap ratio is 70:30. The market is backed by the introduction of washing machine. The survey result shows that 40.2% of the people are using it because of convenience or less time consuming.
Soap market: the soap market is highly fragmented, as there are large numbers of competitors. In this industry 101 is the leading company with market share of 40%. The next best competitors are Sufi, Reshma. (See table 4 for the market shares). The soap industry is at the declining stage.
Now we have compared the company with its next two competitors with the help of marketing P’s (product, price, place etc) and other information related their product.
3.0.2 PRODUCT
Company product line consist of two-laundry segments soap and noodles. In these two segments they have several types of soaps and noodles. Company has kept the product same from the day one till now. No change in color, packaging, and fragrance etc has been put in, just to keep a persistent image in the mind of customer, 101 transparent is an example of it. Its name has set a symbol. (See table2-1 for the company line of product and see table 2-2 for the leading brand and their share in company sales).
3.0.3 Pricing
The laundry soap is highly fragmented segment and there is a stiff competition. Customers are demanding for the best quality and those who provide that quality at reasonable price will survive. Table-6 presents the price and the size of 101, Sufi, and Reshma.
3.0.4 PROMOTION
Darbar soap was extensively promoted in early 1990’s. They used almost every method mentioned in the book. They heavily advertised, gave different customer schemes, several holdings, posters, banners were put down. However now they believe in ground floor promotion. Promotion tactics used are attached as annexure I.
3.0.5 PACKAGING
In the sector of packaging company is having trouble. 101 transparent come in carton of 72 cakes and there is no separate packaging for it. Customers usually buy three to four soaps. So the remaining remain opened and moisture comes out that disturb the customer’s perception. On the other hand Sufi and Amin group are selling in four cakes per pack.
Further they have found that the separate packaging for 101 transparent special has not adjusted to the customer mind set. They have found that the packaging color is dark so that makes it low quality or inferior good. People just ignore it without even trying it. Reshma has kept the color of their soap white and Sufi has rainbow and whiteness concept. Packets used are attached as annexure II.
3.0.6 PLACEMENT
Now lets talk about Darbars placement of their product. They have placed them self to all the retailer shops who keeps laundry products. They are targeting on middle and lower class. Till 2001 Company used to sell their products through a complex marketing channel. (See table 5 for the distribution network). From 2001 on words company has stopped giving higher trade discount and they are more focusing on direct customer purchasing like buchaat bazaar, retailers, and seminars etc. (the sales figure for the past 8 years is shown in table 1).
3.0.7 Soap versus Detergent
A detergent is a synthetic imitation of a soap, i.e. a laundering agent made from chemicals. Detergents were developed in Germany in 1916. They are not just "imitation soaps." Detergents are different from soaps in that they do not combine with natural mineral salts in water and do not form scum. Unlike real soap, detergents work in cold water and with salt water. Soap and detergent have similar capacities to emulsify fats and oils and hold dirt, but from this point on, they are significantly different due to the presence of surfactants and additives, such as whitening agents. The of the chemicals used to produce these detergent effects is hair rising.
Beginning around 1960, it was noted that there was more foam on rivers and that sewage treatment facilities were encountering serious problems, including that water foamed when it came out of the tap, this due to the fact that propylene-based alkyl benzene sulphonates are not completely degraded by the bacteria naturally present in effluents. It is not for me to try to explain the chemistry of all that started to go wrong, but merely to note that the correction being sought was to increase use of proteolysis enzymes to aid the breakdown of materials that were not readily "bio-degradable." The ramifications of this are almost too far-reaching to imagine.
3.0.8 Survay
After analyzing the sales figures 101 wanted to conduct a survey. They hired researcher from outside to carry out the research. Survey was conducted in month of September 2002. In survey they included almost 200 respondents from different localities where their sale is declining. These areas include Gulshan, liaqutabad, and garden etc to check the current position of their product and the perception of customers about it. (See table 7 for sample areas and sample size). The results that came were astonishing. Some of the results are mentioned below:
- An average 55.1% out of 200 people use the combination of soap and detergent for washing purposes
- Almost 22% people who have tried 101 Transparent are complaining about color
- Soap is used mostly for specific items
- They have left soap because of inconvenience
- The detergent to soap ratio is almost 70 to 30% ratio
- Detergent can be easily put in washing machine
4.0 Analysis Of The Company
4.0.1 Boston Consulting Group’s Growth Share Matrix
4.0.2 General Electric Model
4.0.3 Three Intensive Growth Strategies: Ansoff’s Product/Market Expansion Grid
4.0.4 Opportunity Matrix
Opportunities
- Can capture more market shares; at the moment have 40% shares.
- Can later go into international market
- Can get an environment friendly image, which will help in getting ISO-14000 certification which can be a major advantage for exports which is a future plan.
- Expected growth in profit 15%
- Can make the landmark for future line expansion (i.e. Detergent Tablets)
4.0.5 Threat Matrix
Threats
- Detergents are a direct competitor.
- Other soap manufactures can also bring in the changes.
- Competitors can go for even lesser price to gain market share.
- People perseve that detergents are better than soaps.
- Soap industry have reached maturity
4.0.6 The McKinsey 7-S Framework:
key point: strategy 1 of 7 elements to achieve great success
Structure
The company structure is Unlisted Private Limited Company
Strategy
The company strategy is to capture the maximum market share while keeping its shares stable, at the current situation the company has 40% market shares which are greater than any other competitor.
Shared Value
The company is the pioneer in the soap making and the technology associated with it. It has been the market leader for the last fifty years. Although the market shares have gone down by 7% but still there is a major difference between Darbar Soap and its competitors.
Skills
It has always been the technology leader in the field “Mazzoni” being the highest quality producer machine
Staff
The company did not had a very professional staff but since last five years the importance is given to the human resources as they say that to be the best you have to work with the best
Style
The traditional shape of soap was not so good so the measures are taken to improve it
4.0.7 Factors Influencing Company Marketing Strategy
5.0 New Product Marketing Plan
5.0.1 NEW Soap 101 features
Following are the added features of Soap 101:
- New Good Look, with transparent and lively color
- Added Fragrance
- Cleaning Active Agents
- Made from Vegitable Fat
- Do not harm hands
- Kill the dirt
- Maintain the fast color of cloths
- Promotional Steps
- Price-discount
- Cheaper goods
- Prestige goods
- Product innovation
- Improved services
- Distribution innovation
- Manufacturing cost reduction
- Intensive advertising promotion
In The Above Chart Our Company Lies In Group C
A
Annexure A
TABLES FOR ANALYSIS
Table 1
DARBAR SOAPS
SALES OF 101 DARBAR for Last Eight Years
Years Sales in Tones Sales In Rs. (million)
1994-95 15000 300
1995-96 13500 270
1996-97 12000 240
1997-98 10800 220
1998-99 9500 204
1999-00 8500 190
2000-01 8200 180
2001-02 8700 215
Source: Company Records
Table 2-1
DARBAR SOAPS
Product Line of 101 DARBAR
Source: Company Records`
Table 4
DARBAR SOAPS
Market share in the laundry market
Company Relative share(%)
101 Darbar 40
Sufi soaps 10
Reshma 222 10
Kohinoor soap 8
Others 32
100%
Source: Company Records
Darbar Soap channels of marketing
Use to be
Producer
Distributor
Wholesaler
Retailer
Customer
Source: Company Records
Table-7
101 Darbar soap
Areas selected for survey
Source: Company Records
Table 2-2
101 Darbar soap
Leading products & their contribution share
Source: Company Records
Annexure B
ADVERTISING
Animation to be presented on the day of presentation April 20, 2003
Annexure C
NEW PRODUCT DESIGNS
A Report By: TASK
TAni, Sheraz & Kamran
strength, performance, agility, dependable, hard work, competitive, winning attitude
