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1.0 Company Introduction

Square Group of Companies is one of the most reputed and largest local companies of Bangladesh. The company is very reputed and has a very good image not only in Bangladesh but also in many foreign nations. It was set up in 1958 with the Pharmaceutical Company and in 1988 Square Toiletries Limited made its entry as one of the divisions of Square Pharmaceuticals Ltd. In 1994 Square Toiletries Limited began its journey as a separate entity. At present, Square Toiletries is the country's leading manufacturer of international quality cosmetics and toiletries products. Today with over 50 products, Square Toiletries Ltd is one of the largest companies in the toiletries sector of Bangladesh. Through their distribution network, they have succeeded to penetrate consumers the most in the country.

1.1 Product

Skin Care

Hair care

Baby care

Oral care

Household care

Fabric care

Male Grooming

Health & hygiene

1.2 Corporate Level Strategy

1.2.1 Vision

“We attempt to understand the unique needs of the consumer and translate that needs into

products which satisfies them in the form of quality products, high level of service and

affordable price range in a unique way.”

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1.2.2 Mission

1. Addressing the unique needs, we endeavor for top quality products at the least

cost reaching homes of all people in the country.

2. With continuous R&D and innovation we strive to make our products complying

with international standards in order to provide top-notch brands to our consumers

both domestic and international.

3. To fulfill our responsibility to the Government through payment of entire range of

due taxes, duties, and claim to various public agencies. And as responsible

citizens, we make every effort for a social order devoid of malpractices, anti-

environmental behaviors, unethical and corruptive dealings.

4. We strive for best compensation to all the employees who arethe back-bone of the

company through a pay-package composing salary/wages, allowances, bonus,

profit participation, leaves salary and superannuation & retirement benefits.

5. To be socially responsible to the citizens of Bangladesh by initiating activations

conforming to social and cultural benefits.

2.0 Product Introduction

Meril Splash Beauty Soap is one of the skin care products of Square Toiletries Limited. It

was introduced into the market in October 2007. Meril Splash soap especially developed

for Bangladeshi girls, in the local market. According to STL “A famous quote states that

all’s well that ends well. To end well you need to start the best way you can. When you

step out of your home every morning, you want to look your best as well. As the day

takes its toll, the morning freshness starts to disappear with dirt, sweat and exhaustion.

When the day lets you free from its vice-like grip, you want to wash away the grimy

memories and feel fresh again. The showers you will take, have it on Meril Splash

Beauty Soap, and come out refreshed!”

The core benefit offered by Meril Splash is freshness. The very nature of Bangladeshi

skin needs extra attention because the climatic conditions are not mild like that of

temperate climate. The heat and humidity are the constants one cannot get rid off!

Furthermore, the level of toxicity in air and water is not doing our skin any favor. Dirt is

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what one has to deal with day in day out. If one don’t pay due attention to his/her skin,

then early age wrinkles, acnes and other skin problems will make their presence felt

sooner than later. With some care and effort, these undesirables can very well be

prevented. The Meril Splash beauty soap contains special ingredients and contains fruity

fragrance. It comes in four different variants, Water Melon, Turmeric, Cucumber and

Peach. Each variant has a unique formula, Active Freshness which helps the skin to retain

its freshness. The four variants tackle different skin problems such as reviving sunburn

skin, nourish damaged skin, moisturize and revitalize to moisturize and revitalize

blemished skin. Meril Splash keeps user fresh all day long, skin beautiful and radiant.

Once someone starts using Meril Splash Beauty Soap, he/she will live the brand slogan:

“Snigdho Konna, Roop e Ononna”.

3.0 Value Chain

The value chain approach was developed by Michael Porter in the 1980s in his book

“Competitive Advantage: Creating and Sustaining Superior Performance” (Porter, 1985).

The value chain framework of Porter (1990) is “an interdependent system or network of

activities, connected by linkages.” When the system is managed carefully, the linkages

can be a vital source of competitive advantage. In order to conduct the value chain

analysis, the company is split into primary and support activities (Figure 1).

Figure 1: The Value Chain: Source: Porter (1985)

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Primary activities are those that are related with production, while support activities are

those that provide the background necessary for the effectiveness and efficiency of the

firm, such as human resource management.

4.0 Value Chain Analysis of Meril Splash Beauty Soap

The primary and secondary activities of the meril splash beauty soap are discussed in

detail below.

4.1 Support activities

The support activities include the following:

4.1.1 Procurement

This function is responsible for purchasing the materials that are necessary for the

product’s operations. An efficient procurement department should be able to obtain the

highest quality goods at the lowest prices. Procurement especially of raw material

contents and packaging material is critical to the product and ultimately to the

organization’s success. Square Toiletries Limited is basically focusing on cost leadership

in branded soaps market. For their raw material procurement they have opted

“outsourcing” strategy. Many contents of meril splash are procured from Malaysia,

Singapore and some of raw material is locally available it increases the lead-time. The

procurement system of meril splash is mostly globally centralized and is long term as

well. For purchase of local raw material STL is outsourcing with its suppliers. They have

got very good long term relationship with their suppliers of local raw material as well.

Hence they get the quantity discounts and manage lead time as well. Most of packaging

materials procure from local manufacturer. Procurement functional activities perform by

its Supply Chain Management department as per requirement and manage lead time as

well. STL handles this situation with “near to JIT system” i.e. called ERP (Enterprise

Resource Planning) System. Through this system the suppliers of raw material are well

connected through computer terminal, the detail and current level of all raw materials,

inventory level is reflected on supplier terminal and on specific interval they ship the raw

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material automatically which reduces time for repeated requisition. After releasing the

material from customs the ingredients are shipped to Rupshi Plant. These ingredients are

processed (both local and imported) in the machinery specifically designed for this

purpose.

4.1.2 Human Resource Management

This is a function concerned with recruiting, training, motivating and rewarding the

workforce of the company. Human resources are increasingly becoming an important

way of attaining sustainable competitive advantage. Human resource management is the

one of the most important supporting pillar of the value chain and it is useful for its

analysis. A firm’s higher technological and financial resources cannot do anything for the

betterment of company unless these two and rest of the resources are handled by the good

appropriate human resources.

Square Toiletries Limited has a skilled, qualified, expert, communicative

management and officer’s staff. They have both formal and informal network of

communication in their organization to complete the tasks and target efficiently

and effectively. There is healthy type of network among Square Toiletries Limited

staff’s department. Square Toiletries Limited offers the training programs and

arranges seminars for further skill development and career development purposes

of its brand managers, marketing managers, research and development managers,

and other staff, which enhances their efficiency to support the primary activities

of value chain of meril splash beauty soap. Due to necessary training, healthy pay

scales, balanced empowerment, informal and formal combination of

communication network the job satisfaction of each and every employee is very

high. This reduces the employees’ turnover to minimal.

STL’s Training & Development enables their people to enhance their skills, keep

them updated with recent changes. They offer both on-the-job and off-the- job at

both theoretical and practical training opportunities through a range of Local,

Regional and International Training programs that include both functional and

managerial levels on the basis of Training Need Assessment. Training Need

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Analysis (TNA) is conducted by Department Heads and Human Resource

Department jointly on the basis of job analysis. And those training help to

improve meril splash soap.

STL sends their employee to abroad for training program depending on

availability of appropriate topics. Technical persons of their factories attend the

Factory Assessment Test (FAT) in various parts of the world for smooth operation

of equipments. Twice in every year, mid-level managers of sales participate in the

training program titled “Sales Territory Management” at a regular basis. Such

types of training helps to make employees more knowledgeable about its product

like Meril splash.

4.1.3 Technology Development

This is an area that is concerned with technological innovation, training and knowledge

that is crucial for most companies today in order to survive. By technological

development as a supportive activity we mean that how much organization is bringing

further improvements in its products and product development.

Toiletries Limited symbolizes innovation. STL is the pioneer for bringing in new

products and packaging concepts in Bangladesh. Meril splash beauty soap is carrying out

its production in fully automated plants at Rupshi. With its state-of-the-art production

facilities, most advanced equipment, and high quality raw materials, STL ensure the

absolute best for its customers. Depending on the nature of products, formulation, and

packaging, STL has specific machinery for meril splash soap. A group of well-trained

people always ensures the smooth operations of all machinery. Imported from various

foreign suppliers, the best quality raw materials are used for meril splash. Each phase of

the production process undergoes rigorous testing to meet international standards,

following the GMP (Good Manufacturing Practice) of production.

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With the help of STL’s strong R&D department meril splash is committed towards

developing new products & improving existing products. The objectives of meril splash

are:

A deep understanding of consumers, their habits, and product needs.

Capabilities to acquire, develop, and apply technology across Square Toiletries

Limited broad array of product categories.

The ability to make "connections" between consumers' wants and what

technology can deliver.

4.1.4 Firm Infrastructure

This includes planning and control systems, such as finance, accounting, and corporate

strategy etc.

Square Toiletries Limited has a well established infrastructure. They have knowledgeable

expert top management and middle management who have expertise in the consumer

goods fields. STL has few experts to furnish their product meril splash knowledge. In the

organization they have an open, team oriented and multicultural work environment. The

exchange of knowledge and learning from others inside and outside the company is part

of its everyday business. Chief Executive Director controls all departmental head and

departmental head control their respective subordinate as per chain of command. STL

values the employees as the greatest asset. Their expertise, passion and enthusiasm are

keys to their success. They encourage personal and professional development based on

respect, rewarding self-initiative and teamwork. Their goal is to empower their

employees at every level and integrate them fully into the global network. Thus, they

have adopted decentralized control system to fit in to the corporate strategy but most of

the powers hold by central authority such as Strategic planning making power, Major

financial power. Maintenance of sociable working environment which results in lowest

turnover rate and a highly motivated workforce. All of them contribute a lot and

positively for the support of value chain primary activities i.e.-

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They have a very good and effective management information system, which not

only shares the information within the organization but also with the suppliers and

wholesalers of meril splash as well. This saves their time and gives them real-time

information.

Marketing research department is also sharing consumer research data to improve

meril splash’s standards according to customer demand and trends e.g. meril

splash recently introduce a new variant called ‘meril splash-extra fresh’ which

packaging is totally different than previous.

Procurement manager putting his efforts for the purchase of high and right quality

making inbound logistics.

Operations / brand manager is focusing ensuring the relationship of the meril

splash production.

Sales and distribution manager of Square Toiletries Limited is ensuring the

complete coverage of retail outlets. He ensures that all variants of meril splash

soap are available on each shopping outlet of Bangladesh i.e. from large shopping

stores to small shop covering both rural and urban areas.

4.2 Primary activities

The primary activities include the following:

4.2.1 Inbound logistics

These are the activities concerned with receiving the materials from suppliers, storing

these externally sourced materials, and handling them within the firm. Inventory Control

department receive raw materials ingredient of meril splash soap from suppliers. At the

receiving point Quality Control department confirm the product quality. The basic inputs

of meril splash soap are purchased from outsource suppliers. Instead of backward

integration they believe in outsourcing which reduces their cost. Square Toiletries Ltd.

high lead time in case foreign procurement and manage this by placing order in time.

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4.2.2 Operations

These are the activities related to the production of products and services. Square

Toiletries Ltd. has been in meril splash product line since 2007. For this long time

experience they acquired superior production method. Meril Splash’s production systems

are automated and modernized. With their state-of-the-art production facilities, most

advanced equipment, and high quality raw materials, they ensure the absolute best for

their customers. A group of well-trained people always ensures the smooth operations of

all machinery. Imported from various foreign suppliers, the best quality raw materials are

used for all STL products. Square Toiletries Ltd. has a factory at Rupshi in which they

produce this soap. Each phase of the production process undergoes rigorous testing to

meet international standards, following the GMP (Good Manufacturing Practice) of

production. It strives to continuously upgrade manufacturing technology and to maintain

optimum level of quality measures in conformity with the international standard – ISO

9001: 2008. Safety is an essential element of any business. At the design stage of meril

splash, STL check the safety of new raw materials, the development of new actives,

formulations and methods. They also check the safety of packaging, distribution and

promotional activities.

4.2.3 Outbound logistics

These are all the activities concerned with distributing the final product and/or service to

the customers. Final product of Meril splash of Square Toiletries Ltd. is shipped to its

distributors via truck on the demand of these distributors. Transportation cost of soap

product delivery to distributor end bear by company itself. Square Toiletries Ltd. covers

all the retail and shopping outlets of Bangladesh. Square Toiletries Ltd. Ensures

availability and visibility of its meril splash as each and every large store, medium and

small shops.

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4.2.4 Marketing and sales

This functional area essentially analyses the needs and wants of customers and is

responsible for creating awareness among the target audience of the company about the

firm’s products and services. Companies make use of marketing communications tools

like advertising, sales promotions etc. to attract customers to their products. Square

Toiletries Ltd. has aggressive marketing to create product demand to potential user.

Square Toiletries Ltd. makes good relation with their distributors and retailers. Meril

splash beauty soap give incentive, discount and prize offer to its distributor, retailers and

client.

With the promise of giving extra freshness to Bangladeshi Girls, STL has developed and

marketed Meril Splash Beauty Soap. Meril Splash is the brand that believes freshness is a

key to a girl’s beauty. This platform of freshness is now extended further as we

understand that the inner freshness of a Bangladeshi girl is eternal and is much bigger

than the external beauty. STL carefully integrates and coordinates many communication

channels to deliver a clear, consistent and compelling message about “Meril Splash

Beauty Soap.” To reach in consumer they use different types of advertisement. This are-

Magazine advertisement, Television advertisement, Newspaper advertisement, Billboard

advertisement, Poster advertisement etc. In the advertisement Meril Splash Beauty Soap

sends a message- “SNIGDHOTAR SHOTEJ ANONDE”. Through these advertise Meril

express that Meril Splash is for those who want to feel quite smooth and vigorous and

energetic. So they use a symbolic word picture that a young girl is feeling more energetic

and dreaming that she has lost in the fresh and breezy world.

Meril Splash and Persona has come together with an Event “Inspiring Freshness.” The

whole concept was cherished with the handover of a Legendary Award for Inspiring

Freshness to Feroza Begum, the renowned Najrul Shangit singer. She was given the

award for her contribution in music, her fresh look and voice that inspired all of us. All of

those marketing and sales policy add value in this product and encourage consumers to

buy this product.

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4.2.5 Service

There is often a need to provide services like pre-installation or after-sales service before

or after the sale of the product or service. Meril Splash has aggressive marketing policy to

create product demand to potential user. Meril Splash has good “service” in terms they

offer free samples for the re-launch of Soap, which helps as a primary activity. STL

makes good relation with the distributors and retailers. It provides various incentive

package such as trade incentive package and consumer incentive package. Trade

incentive package give to distributor and retailers, on the other consumer incentive

package give to end user. Company also arrange various seminar and conference

regarding and consumer relationship and good behavior.

5.0 Conclusion

Meril Splash Beauty Soap is one of the popular products of STL. The value chain frame

work helps analyze the contribution of individual activities in a business to the overall

level of customer value the firm produces and ultimately to its financial performance. If

each part of the business produces value, the firm should be able to change more and/or

incur lower costs either of which will lead to higher profit margins. Our skin is possibly

one of the most amazing parts of our bodies. It protects us from harsh environments and

infections, helps us to feel and experience our surroundings and keeps us warm, or cools

us down, whenever we need it. It's also the largest organ of the human body and needs to

be maintained to help us lead healthy, full lives. If neglected, skin becomes easily

damaged and dry – and not only looks bad, but loses its ability to work properly. The

desire to be clean, active, energetic and healthy is common to every person, whether

young or old, whether rich or poor. Health is more than just physical well being. The

signs of good health – being active, energetic, feeling good, and looking good. Meril

Splash Beauty Soap aims to help people feel good, look good and get more out of life.

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6.0 References

1. Square toiletries website, http://www.squaretoiletries.com/

2. Philip Kotler, Marketing Management, 11th Edition.

3. Mr. Morshad Ullah Talukder,

Sr. Executive (Accounts and Finance),

Square Toiletries Ltd.

Mobile: 01727524137.

4. Md. Masud Hossain,

Executive (HRD)

Square Toiletries Ltd.

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