Monitoring the Effectiveness of Positive Reciprocal Effects on the Vertical Brand Extension of Parent Brand, Savlon

Topics: Branding, Brand equity, Brand extension Pages: 27 (7041 words) Published: December 16, 2009
Monitoring the effectiveness of positive reciprocal effects on vertical brand extension of parent brand SAVLON.


1.0 Introduction
As the final requirement of the BBA program in Independent University, Bangladesh, it is a must for every student to undergo a three months internship program in an organization. The interns are required to carry an extensive analysis of real world business problem in this program. Therefore, I had been placed at Advanced Chemical Industries (ACI) Limited and get the opportunity to see the overall aspects of that organization specifically the consumer brand during the internship program. Mr. Aminur Rahman, Associate Professor, School of Business, Independent University, Bangladesh was my internal supervisor and external supervisors was Ms. 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 see the 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 Bangladeshi soap market which are Lifebuoy and Dettol. In the case of health soap Dettol has gain the maximum market share and then Lifebuoy. Again, under beauty soap segment Lux is the market leader 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 under beauty 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 separate categories which are “SAVLON Antiseptic Soap” and “SAVLON Skin Care Soap” with the slogan of everyday protection from germs. Moreover, at previous time a good number of studies had 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 threats etc. AC-Nielsen also conducted a focus group discussion in this regard. Through the focus group discussion, consumers’ perceptions regarding the product of SAVLON brand against other competitive brands and different strength, weakness, opportunities and threats in the existing market have also been found out. So, the company already found out the consumers perception of SAVLON brand. Now, through out this internship in-depth interview has been conducted on gaining 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.


care 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 user of 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 of the segment which are health soap and beauty soap. But they were unable to capture the maximum market share than other companies in both of the segment. The reason was that, they were incapable to compete with the dominant brand Lux under beauty soap category and with Dettol and Lifebuoy under health soap category. Furthermore, they were incapable because of their inconsistency in distribution and lack of product uniqueness. That is why, the company has come up with a new idea and they want to launch a new kind of soap which will contain both antiseptic quality and beauty care quality. Then, this vertical brand extension will make the reciprocal effect on the parent brand. So, here the studying issue is that, with the help of in-depth interview we want to check out first the existing perception level of consumers’ about...
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