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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.

A GROUP PROJECT ON VALUE CHAIN ANALYSIS OF MERIL SPLASH BEAUTY SOAP

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, antienvironmental 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 alls 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
A GROUP PROJECT ON VALUE CHAIN ANALYSIS OF MERIL SPLASH BEAUTY SOAP

3 what one has to deal with day in day out. If one dont 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)

A GROUP PROJECT ON VALUE CHAIN ANALYSIS OF MERIL SPLASH BEAUTY SOAP

4 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 products 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 organizations 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
A GROUP PROJECT ON VALUE CHAIN ANALYSIS OF MERIL SPLASH BEAUTY SOAP

5 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 firms 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 officers 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 staffs 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. STLs 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
A GROUP PROJECT ON VALUE CHAIN ANALYSIS OF MERIL SPLASH BEAUTY SOAP

6 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.

A GROUP PROJECT ON VALUE CHAIN ANALYSIS OF MERIL SPLASH BEAUTY SOAP

With the help of STLs 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.-

A GROUP PROJECT ON VALUE CHAIN ANALYSIS OF MERIL SPLASH BEAUTY SOAP

8 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 splashs 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.

A GROUP PROJECT ON VALUE CHAIN ANALYSIS OF MERIL SPLASH BEAUTY SOAP

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 Splashs 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 firms 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 girls 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 areMagazine 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.

A GROUP PROJECT ON VALUE CHAIN ANALYSIS OF MERIL SPLASH BEAUTY SOAP