Developing
Nabulsi Soap
Graduation Group:
Zuhoor Mosa
Khawla Beshtawi
Lamya Drawsheh
Hala Qudri
Supervisor:
Dr.Ayham Jaron
Main points:
1- Introduction
2- Project goals
3- data collection
4- result and data analysis
7- the marketing plan
8- Conclusion and recommendation
Introduction
Nablus Characterized since ancient by soap industry
Made from high-quality olive oil, so Nabulsi soap
differ from Other types with its white color,
prepared from olive oil and caustic soda.
The manufacture of Nabulsi soap decline and the most
important reason for this decline in using nabulsi
soap is probably the competition by cheaper foreign
soap products .as well as the introduction of new
consumption models that led young generations to
prefer shampoo and perfumed soaps.
The actual decline of the Nabulsi soap industry is also
because of the diminution of local consumption:
people who still buy and use it today are getting
older.
While they remain appreciate good qualities of their
traditional soap, these persons aged sixty years or
more.Younger generations, in particular, prefer to
use other foreign products that appear more
modern and of better quality .
The traditional nabulsi soap it self have undesirable
and unsuitable features by customers such as its
shape, smell, size and packaging .
The problem of its competitiveness is often
attributed to its difficulty to face modernity
But if it changed to better fit the more modern
requirements of everyday use it would continue to
exist as Nabulsi soap
The nabulsi soap development project focuses mainly
on determining customer needs as to create
successful new soap products, we must understand
customers, markets and local competitors to
develop soap product that deliver superior value to
customers.
Project goals
1- Preserve the heritage soap industry in addition to
develop it to become competitive.
2- Support and enhance the national products .
3- improve the company economic and competitive
status through remain fresh & current in the
market place.
4- gain new customers, retain existing customers and
increase profitability.
Data collection
Data collection
We have visited supermarkets, pharmacies and asked about
the case of products, according to the best-selling, does
customer prefer liquid or solid soap? What kinds of
Nabulsi soap is exist in the market?
We had an interview with chemical specialists , we asked
them about the possibility of changing the form of soap,
and the possibility of adding natural oils because our aim
was adding aroma with preserving the natural
characteristics of the product, we were involved in the
two types of manufacturing soap hot and cold processes,
and the results will be showed later .
On the other hand, we visited many soap factories , and
saw some production lines, we asked them about how
manufacturing, and if they had previous experiments
related to Nabulsi soap development, we watched
manufacturing manual extruder, and we asked about the
prices.
We conducted an interview with the director
of a plastics factory, and asked about the
ability of producing molds for soap
manufacturing, he told us about alternatives
with acceptable price and provide us
information about horizontal and vertical
methods which will be explained later
We visited perfumery shops and informed
about the kinds of natural aromatic oils, and
asked about the prices.
Finally, as we contact with customers and identify their
needs and expectations we use two tools to
obtain customer needs:
1) Focus groups
2) Questionnaire
Focus groups:
9 focus groups was conducted, all responses was
recorded and analyzed.
The results shows that more the majority of people do
not like nabulsi soap and didn’t buy it because of
its:
1- Cube shape
2- Unattractive smell
3- Big size
4- Unappealing and unaccepted package
Questionnaire
the questionnaire includes:
1- personal questions about ( age , six )
2- general questions about their soap consumption and
Purchasing decision.
3- specified questions about nabulsi soap.
4- Yes or no questions
5- Multiple-choice questions (closed questions)
6- Open questions
The questionnaire covers all data that we need in our
project.
In addition we use on line survey/questionnaire in
order to reach large geographical distributions,
real-time access and people can answer questions
comfortably.
Results and data analysis
results of survey were analyzed and the customer
requirements and technical requirements,
processes, parts and others were determined.
This step includes:
1- questionnaire results
2- house of quality
3- process requirements
4- the packaging requirements
Questionnaire results
From the survey we developed, the voice of customer was
revolving around the following five features for the new
suggested Nablus soap product. These features are :
1- smell
2- shape
3- size
4- package
5- cost
The results was as follows:
1) size
medium
89%
2) Shape
Oval
86%
3) Smell
Flowers smells
38%
4) Packaging made of:
Plastic
44%
5) Cover features:
6) Cost
2-4 shekel
48%
We conclude that the majority of people prefer:
1-medium size
2-oval shape
3-plastic packaging
4-flowers aroma
5-would bay 2-4 shekels a price for the soap
6-package opens from side
7-simple package
8-cool colors
We conclude that the majority of people :
1-Use soap bars more than liquid soap as(64%)
2-Buy soap from supermarket as (82%)
3-Women who decide the soap type as (55%)
4-When shopping look at the package, price and quality.
5-Think that traditional nabulsi soap is moderate quality
soap
6-Prefer not to change the soap color an remain its natural
color.
7-Would by the new developed soap if it is available in
market as (90%).
House of quality
Interrelationship matrix:
Strong relationship
Moderate relationship
Weak relationship
Technical correlation matrix:
Strong positive
Positive
Customer rating :
processes requirements
***The needed manufacturing processes and parts :
the cold process was preferred over the hot process for the
following reasons :
1) the cold process keeps the added smell
2) it serves a good material in the soap " Glycerin"
3) it's cheaper and faster
Then there are two recommended manufacturing processes
rather than traditional process and give the required
needs. These are the horizontal molding and the vertical
molding.
Vertical molding
Horizental molding
It takes smaller place
It needs more space
Additional cutting process is needs
Doesn't need cutting process
More simple shapes
More complex shapes
Take more time to cool so it needs
Doesn’t need lot of time to cool
supportive cooling process like big
refrigerator
The factory can increase production
Also they can increase the
by preparing more molds and put it production by importing additional
in parallel to each other
molds in case of high demand and
add it to the production line easily.
vertical molding process description :
Use Transparent oily paper inside the tube so they can
remove it quickly an then pour the soap mixture inside
the mold as shown bellow. then let oval soap tube to
cool
after removing the soap tube from the mold , the final
shape is like what the photo shows.
finally , the cutting process are applied.
After cutting the soap appears like this photo.
Horizontal molding process:
In horizontal molding we follow up these procedures.
packaging requirements and processes
From the survey we can determine what's the soap
package should looks like .So we give the packaging
requirements to a designer and he designs so many
colors of the same package with the required features :
the packages are shown in the photos bellow
Marketing plan
Company description
The factory was established in 1986 in Nablus. They started
in producing soap of olive oil , and then they move next to
produce needed cleaning products by local market . the
factory construction is two floors with area of 1300 m2
.The factory add recently a production lines for plastic
bottles that needed to fill it with products. The factory
added new products and developed the existing ones
continually.
Vision
The factory aims to become a pioneering factory that
produces and supplies high quality detergents and home care
products at a good price to the local and regional markets.
Mission
Supplies high quality detergents and home care products to the
local and regional markets at a good price through
distribution channels that reach the majority of the local
market.
Brief description of the new product
The developed Nabulsi soap product is a mid-sized oval bar
of soap consists essentially of sodium hydroxide, olive oil,
rose oil and water. Its packaging is plastic and simple .
the benefits of traditional Nabulsi soap, it is excellent for
sensitive skin and dry because it contains factors blessed
and soothing the skin. Olive oil soap is the best treatment
for skin diseases such as eczema and psoriasis. Olive oil soap
protects the body's natural oils from oxidation which leads
to prolong cell life .
In addition to all these benefits. The developed soap contains
rose oil which give the skin extra brightness and
smoothness also give the soap nice and fresh smell.
The new soap is also moderated to keep up with customers
needs especially the new generation people between 15-30
years old .
it is packaging is moderated to become plastic and nice as
customers wants and its oval moderate size is more
comfortable And ergonomic.
Market analysis
It includes:
1. market summary
2. target market main competitors
3. Five forces
4. SWOT analysis
Market summary
The customers have a strong desires for the development
of Nabulsi soap .the questionnaire shows that 90% of
people will buy the developed nabulsi soap and this is an
excellent ratio. The questionnaire shows that our
targeted market should be women. through the
questionnaire we were able to determine the requests
and desires of women .
we feel it is imperative to focus our limited resources on a
particular geographic region where we can establish
demand for our product.After successful market
penetration, we can expand our market to another
geographic region.
Target market
Identify: women who well aware about beauty and care for
their skin , they need soap to maintain their skins beautiful
and young , soap that will enjoy customers with its shape,
packaging and smell . they are our ideal customers. This
target market is selected on the basis of product features
and buyer of the product . this showed in the survey results
Main competitors
Five forces :
1. Bargaining power of buyer:
With respect to the new product the power of buyer is large
as there is a large number of alternative soap products in
the market .
The bargaining power of buyers are depending on the quantity
purchase if the quantity purchased are large then the power
of buyers are larger . Often the negotiating strength of the
company are bigger than the bargaining power of the
customers in the event that the product is a rare one in the
local market (Developed Nabulsi Soap) and the customers
start to know the product and demand it from
distributors.
2. Bargaining power of supplier:
The bargaining power of the company is strong if :
*If there is a large number of suppliers .
*If the supplied quantity is large.
*If there is a contact between company and supplier.
*If the company unique in its work and it’s the main large
company who orders the material from the supplier.
3. Threat of Substituted:
There are in the Palestinian market a number of alternatives
to nabulsi soap products due to the imported products
from Israel and abroad, in addition to that people prefer
imported soap because it contains more desired features,
but after the development process that added features to
the soap , we recommend the factory to make an offers
and promotions for their products on order to define it to
the customers.
4. Threat of Entry :
The risk of entering a new competitor to the market is
exists, although this entry is need big investment and
experience. whereas the company will not neglect any
new competitor can enter the market and the process of
follow-up and find out what level can be up to him in
order to take preventive measures, which are usually in
the form of offerings on products
5. Competition:
Al Rajeh factory were subjected by the unfair competition
by falsification products which insert in the market under
the name of al Rajeh but the factory knew how to
respond to this unfair competition through consumer
awareness of how to differentiate these products and
reported and prosecuted legally.
SWOT
strengths:
1. an effective organizational structure with good management
by applying and keep abreast of administrative
developments such as getting ISO certification and follow
any additional certificates to get them
2. a large capital enables the company to take advantage of any
opportunity appear on the market and also The company
has strength in the face of competitors.
3. Dealing with strong and well known suppliers in the
market as this ensures the company greater credibility in its
dealings with customers.
4. the excellent quality of the products offered by the
company with very suitable price.
5. Management is committed and confident.
6. Always developing their products in al Rajeh company.
7. Consolidated Brand reputation in Market popular product
name).
8. Accessibility and distributive channels.
9. The factory machines and production lines Has automated
locally which prevents the breakdown or the need for
external maintenance teams.
Opportunities:
1. Local competitors have poor products.
2. Profit margins will be good.
3. End-users respond to new ideas.
4. Could seek better supplier deals.
5. Nabulsi soap is a natural soap without any chemicals
and people looking for maturity.
6. Our price is competitive.
7. Our products is Supports national industry.
8. Potential to expand into new markets or segments.
Weaknesses:
1. Not fully automated production.
Threats:
1. Environmental effects would favor larger competitors
2. closures between the cities and the risks that result from
it.
3. New competitors enter the market.
4. High taxes by government.
5. Israeli bad polices.
6. Imported alternative products with excellent and
known brands.
7. Competitors have launched a new advertising
campaign
8. Downturn in economy may mean people are
spending less
9.Foreign competition aided by lower-cost of entry
to market
10.Slower market growth than production
requirement
11.Buyer more aware of competitors products and
match to their needs / tastes
Distribution strategy
Our initial distribution strategy will involve a combination of
distributor and direct sales. Relationships with local west
bank distributors will be established to increase
promotional reach and potential users. The product will be
distributed in stores, Pharmacy , beauty centers
Promotions strategy
Fundamentally, types of objectives for promotional
activities are:
• to provide information
• to increase demand
• to differentiate the product
• to highlight the value of the product
• to stabilize sales
For promotions the company can carry it out by
advertising on local newspaper, local TV channel and
radio.
The campaign begins usually when launching the new
product in the market where continue the campaign
until the cast product acceptance in the market.
The company should provide Consumer sales
promotion techniques such as:
1.Price deal: A temporary reduction in the price, such as 50% off
Loyal Reward
2.Program: Consumers collect points, miles, or credits for
purchases and redeem them for rewards
3.Sampling: Consumers get one sample for free, after their trial
and then could decide whether to buy or not .
Retail promotions:
1. Buy x get y free
2. Buy a quantity for a lower price
3. Get x% of discount on weekdays.
4. Free gift with purchase
the promotional plan should covers all of the
communication tools that will take place with the
consumer.
our promotional plan should combine a variety of
marketing activities and may include:
1. Advertising on TV ,Radio , internet
2. Packaging
3. Public relations
4. Direct sales
5. Internet marketing
6. Sales promotions
7. Marketing materials
8. Other publicity effort.
Pricing strategy
pricing policies must be compatible with a company’s total
marketing plan. If the new product’s price is high, it is in
danger of failing because of low sales volume. However, if it
is priced too low, the product’s sales revenue might not
cover costs.
Price should meet the following:
1. soap price must be acceptable to the firm’s potential
customers.
2. Maintaining market share as competition grows. If a new
product is successful, competitors will enter the market, and
the small company must work to expand or at least
maintain its market share
3. Earning a profit. The soap price should be more than its
cost because it is much easier to lower a price than to
increase it once the product is on the market.
In our case . the competition is so large and strong because
of the foreign soap that have low price . So the company
would use the a penetration pricing strategy.
Market penetration. The new developed soap will
introduce into a highly competitive market in which a
large number of similar products are competing for
acceptance, the product must penetrate the market to be
successful. To gain quick acceptance and extensive
distribution in the market, al-Rajeh company should
introduce the product with a low price. In other words,
it should set the price just above total unit cost to
develop a wedge in the market and quickly achieve a high
volume of sales.
The introduction of our soap should be accompanied by
heavy advertising and promotional techniques, special
sales, and discounts. This strategy is along range strategy
; until consumers accept the product, profits are likely to
be small. If the strategy works and the soap achieves
mass market penetration, sales volume will increase, and
Al-Rajeh company will earn adequate profits. The
objectives of the penetration strategy are to beak into
the market quickly, to generate high sales volume as soon
as possible, and to build market share. Many consumer
products, such as soap, shampoo are introduced through
penetration pricing strategies. So we think it is the best
pricing strategy.
When pricing the product we looked to three main factors:
1. competitor prices in the market and their services
2. the price ceiling in the market
3. the price that customers are willing to pay .
the survey shows that:
* 48% of people would pay 2-4 shekels.
* 43% of people would pay 5-7 shekels.
* 9% would pay 7-10 shekels.
After looking to the survey results we think that price should not
exceed 4 shekels. The price of the old nabulsi soap per unit is
2.5 shekels.
We asked the company and They give us roughly value that the old
cost per unit equal 1.6 shekels
But according to the new values:
rose oil cost = .5 shekel per unit
package cost = .5 shekel per unit
So the new cost is 2.6
Al-Rajeh factory want profit equal to 15-30 % of the cost. Stores
profit or retailer profit 15% also.
final price = cost/unit + company profit + retailers profit +
additional costs.
final price = 2.6 + .15*2.6 +.15*2.6 = 3.38 shekels
The perfect price that meet company and customers desires is 3.5
shekels per unit.
Conclusion
The new developed nabulsi soap with rose aroma has
modernized to meet customer needs. It differs from the
traditional soap bar with its oval shape that is more
ergonomic and more suitable to usage, its rose aroma and
smell which is fresh and beautiful as customer want and
we modernized its package to open from sides with
beautiful color and simple design consistent with the fact
that Nabulsi soap is natural. We concluded that the
Palestinian consumer wish to modify and modernize the
nabulsi soap, because they does not want this industry to
disappear and decline because nabulsi soap part of
Palestinian heritage and attribute of Nablus city ,its new
appearance does not affect its nature and being a part of
our heritage
Finally, we enjoyed developing Nabulsi soap and we find it
an opportunity to support the national industry. Sincere
wishes for a successful product.
Recommendations:
1- Implementation of the project before the appearance of
new local competitors because the industry is developing
day after day.
2- Removing any inside obstacles to conform with the changes
smoothly.
3-Implement any of the new manufacturing processes which
they are horizontal molding and vertical molding because
both gives the required shape and quality.
4- The required technical requirements should be carried out
to achieve all customers needs.
5- The targeted market should be women because the
majority of people says that soap buying decisions are
taken by females.
6- the company should use the a penetration pricing strategy
to gain quick acceptance and extensive distribution in
the market.
7- advertisements should covers all of the communication
that will take place with the consumer.
8- The company should provide consumer and retailer
promotional techniques to increase sales volume.
9- The perfect price that meet company and customers
desires is 3.5 shekels per unit .This price make the
product more visible.
10- As the factory machines and production lines Has
automated locally then the factory can automate soap
production easily but the same molds method.
11- in the marketing and advertisement plan focus on the
product advantage over competitors products make the
customer aware about your soap special features such as (
its a national product , perceives heritage , natural 100%
…etc).
12- take customers feed back in to consideration to
maintain continues improvement.