Portfolio analysis of Square Toiletries Ltd

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Portfolio Analysis Of Square Toiletries Ltd (STL)

PRODUCT PORTFOLIOANALYSIS

Square Toiletries Ltd (STL)

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Assignment On

Product Portfolio analysis

Square Toiletries Ltd (STL)

Course Name : Strategic Marketing

Course Code: MKT 502

Submitted To

Md. Rakibul Hassan

Lecturer

Department Of Marketing

Jahangirnagar University

Submitted By

Sabakun Naher Shetu

Id- 642

Department Of Marketing

Jahangirnagar University

1st Semester, MBA

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Session -2014-15

Date of Submission: 9 June 2015

Table of content

Particulars Page no

1. Introduction1.2. Overview Of Square Company Limited (SCL)

1.3. Overview of Square ToiletriesLtd (STL)

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2. Portfolio analysis of STL2.1. Selecting the appropriate portfolio matrix2.2. Assessing industry attractiveness2.3. Assessing competitive position2.4. Identifying unique opportunities & threats of STL2.5. identifying unique resources & skills of STL2.6. Plotting STL’S current portfolio position

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Conclusion 10

References 10

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1. Introduction 1.2. Overview of Square Company Limited (SCL)

Square company is one of the most and largest company in ourcountry. They have several branches all over the countryproviding and distributing product and services. Now-a-days theycapture most of the market shares of our country. They have areputation name in the pharmaceutical industry of Bangladesh formanufacturing quality medicines for more than four decades. SPL made its debut in a humble way in 1958 from a small house of thevillage Ataikola near Pabna. Some big concerns like SquareConsumer Products Ltd., Square informatics and Square HospitalsLtd. Incorporated at that time; square was joined with amanagement agreement with Burmungrad Hospital International ofThailand for the management of Square Hospitals ltd. Square todayis a corporate giant active in divergent business and industrialfields. Its present unassailable status is the outcome of itssuccessful diversification whether related diversification orunrelated. Our objectives are to conduct transparent businessoperations within the legal & social frame work with aims toattain the mission reflected by our vision. Our Mission is toprovide quality & innovative healthcare relief for people. Ourvision is leading to accretion of wealth through financial andmoral gains as a part of the process of the human civilization.As per provisions of the Article of Association, Board ofDirectors holds periodic meetings to resolve issue of policiesand strategies, recording minutes/decisions for implementation bythe Executive Management. So it is clear to us that SCL a pivotaland most contributing company in our country for govt. as well asfor our economy.

Sl.no

Name of the company Product

01 Square Pharmaceuticals Ltd Medicines

02 Square Textiles Ltd Cotton yarn

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03 Square Spinnings Ltd Dying

04 Square Toiletries Ltd Toiletries

05 Square Food & Beverages Ltd Food & Beverages

06 Square Knit Fabrics Ltd Knitwear

07 Square Agro Development & ProcessingLtd

Agro products

08 Square Herbal & Nutraceuticals Ltd Herbal medicines

09 Square Hospitals Ltd Health care

10 Square Fashions Ltd Fashion & Design

11 Square Informatix Ltd Data processing

Table 1: Square concerns businesses

1.3.Overview of Square Toiletries Ltd (STL)

Square Toiletries Limited (STL) is the leading Bangladeshimanufacturer of toiletries and cosmetics products operating withover 50 international quality products. STL started itschallenging journey with branded coconut oil under the brand“Jui” in 1988.

Currently STL, an ISO 9001:200 certified company, is operatingwith the trust of Bangladeshi consumers with 16 famous brands.

STL manufactures and markets a wide array of consumer toiletriesproducts ranging from Hair Oils, Toilet Soaps, Baby Care, DentalCare, Shaving products, Fabric Care, summer to winter products.The company also markets Feminine Hygiene products and mosquitorepellent manufactured by its sister concern, Health ProductsLimited (HPL) and Square Pharmaceuticals Ltd (SPL) respectively.In a very short time Meril, Jui, Kool, Senora, Chaka, White Plus,Xpel and Magic have become most familiar brands to consumers

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Production of STL products is carried out at its two automatedplants in Rupshi and Pabna. While the Toilet Soaps and FeminineHygiene products are manufactured at Rupshi, all other productsare manufactured in the Pabna Factory. The Best quality rawmaterials from world renowned suppliers like Dragoco, Firmenich,Givadaun, Clariant, Cognis, ISS etc. give an added value to theSTL’s product quality.

STL always adopts international standard production processes byfollowing the Good Manufacturing Practice (GMP). As part of itscorporate social responsibility STL stands behind the acidvictims, works with ICDDRB & Obstetrical and GynecologicalSociety of Bangladesh (OGSB) for reducing post-partum hemorrhageand also have engaged itself in other welfare activities. STLalso stands behind the development of sports and culture inBangladesh.

All the STL product categories are given below –

Productcategory

Brand (S) Name Productcategory

Brand (S) Name

Hair care Jui Coconut Oil, Jui Hair Care Oil

Personal care(Male)

Kool Shaving foam, Kool Shaving Cream,

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Kool AftershaveGel, Kool Shaving Lotion,Kool Deodorant Body-spry

MerilProtective care

Meril PetroleumJelly

Aerosol Xpel

Meril baby Meril Baby Lotion, Meril Baby shampoo, Meril Baby Soap, Meril Baby Powder, Meril Olive Oil

Household &hygienic

(Cleaner )

Spring , ShaktiLiquid Toilet Cleaner

Beauty soap Meril Splash, Meril Splash Belly, Meril Splash Xtra Fresh

Hand wash Sepnil Hand Wash, Sepnil Hand Sanitizer

Body spry(Female)

Revive Prefect Freshness, Revive Perfect Fairness

Medicines( Diabetics)

Zerocal Tablet,Zerocal Sachet

Cleaningproducts

Chaka Washing Powder, Chaka Laundry Bar, Chaka Ball Soap, Chamak

Personal care(Shampoo)

Select Plus

Personal care(Female)

Senora Fragrance Madina

Toothpaste Freshgel, Whiteplus, Magic

Household &hygienic

Saaf Dishwashing

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( Washing ) Liquid

Table 2: Product category & brand(s) name of STL

2. Portfolio analysis of Square Toiletries Ltd (STL)Portfolio analysis helps to determine the firm’s current positionas well as forecast of its future portfolio under its existencestrategy. To conduct portfolio analysis, every firm has to gothrough the following 6 steps. STL is one of the multi-segmentbusiness operators in its industry. The portfolio analyzing stepsfor STL has given below –

2.1. Selecting the appropriate portfolio matrix

The first step of any multi-segment firm is to find out theappropriate matrix for their several products they are offering.BCG growth share matrix is widely used for all relevant product-market segment, introduced by Boston Consulting Group. If SBUrepresents aggregations of product-market segments that areclosely related then the firm can go for GE matrix, introduced byGeneral Electric. Here, we will follow these two types of matrixfor the portfolio analysis of STL to see the best fits of thisanalyzing approach.

2.2 Assessing industry attractiveness

Industry attractiveness are the measure of entering the business segments or not. There several criteria which are chosen to gain the overall objectives of STL. Using these criteria, it is possible to identify the attractiveness of STL. Based on attractiveness criteria, weight, rating & weighted score the industry attractiveness are measured.

AttractivenessCriteria

Weight Rating (5) WeightedScore

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Size 0.14 4 0.56Growth 0.11 4 0.52Pricing 0.05 3 0.15Market diversity 0.06 4 0.24Competitive structure

0.04 3 0.12

Industry profitability

0.15 3 0.45

Technical role 0.04 3 0.12Inflation vulnerability

0.04 3 0.12

Cyclicality 0.04 2 0.08Customer financials 0.09 5 0.45Energy impact 0.09 4 0.36Social 0.03 4 0.12Environment 0.05 4 0.2Legal 0.02 4 0.08Human 0.05 4 0.20

1.00 3.77

Table 3: Industry attractiveness assessment matrix of STL

2.3. Assessing competitive position

On this stage, STL has identified the competitive position regarding the similar competitive firms in these different segments. Some key factors for identifying the competitive position of STL has given below-

Key Success Factors Weight Rating (5) WeightedScore

Market share 0.09 5 0.45SBU Growth rate 0.04 3 0.12Breadth of product line 0.10 4 0.40

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Sales distribution effectiveness

0.11 4 0.44

Proprietary & key account advantages

0.04 3 0.12

Advertising & promotion effectiveness

0.06 4 0.24

Facilities location & newness

0.06 4 0.24

Experience curve effects 0.09 4 0.36Raw materials cost 0.06 4 0.24Value added 0.04 3 0.12Relative product quality 0.08 4 0.32R and D advantages/ position

0.06 5 0.30

Cash throw-off 0.09 4 0.36Caliber of personnel 0.04 4 0.16General image 0.04 4 0.16

1.00 4.03

Table 4: Competitive assessment position of STL

2.4. Identifying unique Opportunities & Threats of STL

Opportunities and Threats impact on the overall operations of thefirm. Identifying company’s overall opportunities and threatsinvolves us to find the positive and negative forces that isbeyond our control and that can define our plan as well.

Opportunities

Huge profitability scope in toiletries industry

Product differentiation

Opportunity to become a multinational company

Positive perception as a local company

Demanding more products

Raw materials availability

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Have the capability to export on the foreign markets.

Threats Competitors are emergence with same product

Bargaining power of suppliers

Increasing of raw materials price

Political instability

Market factors, industry factors, supply factors are considered for analyzing opportunities & threats.

Market factors Market factors are these that help to analyzethe total market of the company’s current situation on the competitive area. Like size of the market, demand of the market, export opportunities of STL have been analyzed.

Size of the market

Stage of Product market evolution

Segment growth rates

Buyer concentration

Price sensitivity and stability

Industry factors These factors are related to the structure ofthe industry where the company does business. Industry factorsare considered as the key influencing factors to decide whetheran industry is attractive or unattractive. These factors are asfollow-

Product differentiation

Sellers concentration

Barrier to entry

Capital intensity and industry profitability

Economic of scale & capacity utilization

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Change of technology

Supply factors Factors that affect supply of raw materials.If the supply of raw materials is not available the company willsuffer from the price increase and frequent shortage of rawmaterials.

Availability of demand and supply

Supplier’s concentration

Import-export barriers

2.5. Identifying unique resources & skills of STL

Square group is a prominent company it has some unique resourcesand skill that help the company to hold its competitive position.The focal point of strengths and weakness of STL has given below-

Strengths - One of the largest manufacturing facilities with world class

technology than other local companies

- Is an ISO 9001: 2000 certified company

- Largest local toiletries & cosmetics company

- Quality compliance with Middel East, Asia, Europe and someother country

- Occupies one of the largest distribution channels inBangladesh

- Quality products offering than other local companies

Weakness

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- Lack of cross functional training

- No fixed target segment

- Lack of highlighting of general & super store

- Limited product variation

2.6. Plotting STL’s current portfolio position

After analyzing all these stages, the company then go forplotting current portfolio position. For STL, BCG matrix for thecurrent products have been applied and the GE matrix will beconducted for better analytical look. Products are classifiedaccording to market growth rate and relative market share.

BCG Matrix of STL products

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Stars: Stars refer the leader position, farthest down onexperience curve relative the competition. The star products ofSTL are Senora, Kool, Meril Revive

STL should build these products

Cash Cows: Cash cows generate funds for other SBUs, maintainmarket share, maintain quality, increase usage rate. The cashcows for STL Jui, Meril Petrolum Jelly, Meril Baby care, Magic

STL should hold these products

Question Marks: Low market share in the expanding industry, slowprogress in the experience curve, need substantial cash toimprove position. The question mark for STL are Xpel, Sepnil,Spring, Zerocal

STL should harvest these products

Dogs: Low market share in mature or declining industry, slowprogress in experience curve, concentrated on niches or limitedeffort. The dogs are: Freshgel, White plus, Select Plus, Saaf,Sakti.

STL should divest these products

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Figure 1: BCG matrix of STL

GE Matrix of STL productsOn GE matrix products are classified on the basis of marketattractiveness and business strengths.

Market

growth

Relative market share

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High- Invest/grow Medium- Invest selectively Low- Low- Harvest/ divest

Figure 2: GE matrix of STL

Conclusion Square Toiletries Ltd (STL) is one of the biggest corporations inour country. From above discussion we can say that thecorporation portfolio is diversified and balanced. Company canreduce many of its risks by using the portfolio analysis of abovescenario. Now-a-days it wants to enter in export business to useits unused capacity as well as to reduce risk

HighMedium

Business unit strength Industry Attracti- veness

Industry

Attracti-

veness

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References Square Toiletries Ltd, http://www.squaretoiletriesltd.com

Wikipedia, http://www.wikipedia.com

http://www.wikipedia.com/

http://www.squaretoiletriesltd.com/

Portfolio analysis of Square Toiletries Ltd

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