Developing Nabulsi Soap Graduation Group Zuhoor Mosa Khawla

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 bestselling, 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 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 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 m 2. 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 = 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.