You are on page 1of 13

DEPARTMENT OF MANAGEMENT

POSTGRADUATE PROGRAM IN
BUSINESS ADMINISTRATION

ASSIGNMNET ON: STRATEGIC MARKETING MANAGEMENT

COMPANY SELECTED FOR THE PAPER: COMA IMPORT EXPORT PLC. SOAP
AND DETERGENT PLANT

Submitted to: Instructor Melkamu Adamu

ORGANIZED BY
Name ID Number
1. Saida Shifa MBA(1)046/15B

Nov./2023
Addis Ababa

1
PART ONE
1. Introduction
1.1 Company Profile
Coma Import and Export Private Limited Company which the paper writer select was
established in 2009 G.C with a total investment capital of 50,511,000birr to be engaged in the
export of agricultural products mainly oil seeds, pluses and cereals to the different part of the
world. The company is a family business owned by two shareholders and its form of business
is “Private Limited Company”. The company’s head office is located in Arada Sub-city,
Woreda 04.
Shortly after establishment, the company has registered a remarkable achievement in the
export business and become one of the top leading and renowned export companies in the
country. Cognizant of this fact, the government of the Federal Democratic Republic of
Ethiopia, on various occasions, has awarded the company in recognition to its commendable
achievements especially in the earning of substantial amount of foreign currency which the
country is in dare need.
The company is also engaged in the transportation services of liquid and dry cargos to and
from the port Djibouti and within the country using its modern and reliable trucks. Currently
it has 10 liquid and 7 dry cargo transportation vehicles at its disposal. In addition, the
company is also involved in business of fixed property subletting and renting activities.
The above mentioned achievements has paved the way for and encouraged the company to
expand its line of businesses. As a result, Coma Soap and Detergent Manufacturing Plant,
which the paper focused, as a latest addition to the business portfolio of the company and
equipped with modern and cutting edge technology, has been established and commence
production in 2019. The factory has two state-of-the-art production lines for laundry and
toilet soaps with 3 and 1.5 tonnes production design capacity per hour respectively. The
aggregate production capacity of both lines is 4.5 tonnes per hour. The location of the
production facility is in Akaki-Kality Sub-City, Woreda 05, around Wuhalimat Area. Since
then the company has been grown into a leading service provider and manufacturer in
Ethiopia.
Source: Company‘s sales and marketing department profile.

2
1.2.Company’s Products category
Currently, Coma Soap and Detergent Manufacturing Plant is engaged in the production of
toilet and laundry soaps mainly for the local market.
1. Products in the Laundry Soaps Category
Soap brand name External appearance Size packaging
Coma Laundry Soap Wrapped 250 gram 50 pcs per pack
Ashu Laundry Soap Wrapped 250, 230 & 180 gram 50 pcs per pack
Mercato Laundry soap Wrapped 230 and 200 gram 50 pcs per pack
BIlisuma Laundry Soap Wrapped 200 gram 50 pcs per pack
Ashu ploy Bag 200 & 180 gram 50 pcs per pack
Ashenda poly bag 200 & 180 gram 50 pcs per pack
Bilisuma poly bag 200 & 180 gram 50 pcs per pack

2. Products in the Toilet and Bathing Soaps Category


Soap brand name Size packaging
Gift Toilet Soap 175, 150, 75 and 50 grams
Coma Bathing Soap 250 gram 50 pcs per pack

Ayat Bathing Soap 125 and 120 grams 72 pcs per pack

Hibir Bathing Soap 100 gram 72 pcs per pack

Lemeza and One wash bathing soaps Size - 75 gram 72 pcs per pack

Zembaba Bathing Soap Size - 50 gram 144 pcs per pack

Additional information
Number of employees in marketing department Company’s phone e-mail address
Position Number (mobile)
Sales and Marketing manager 1
comaexport@yahoo.com
Marketing experts 3 0930469720

3
PART –TWO
Definition of terms and organizational practice

2.1. Definition of terms

Market segmentation
Market segmentation is the process of breaking down the total market for a product or service
in to distinct sub-groups or segments where each segment may conceivably represent a
separate target market to be reached with a distinctive marketing mix. (Andrew whalley,
2010). It is mentioned as a marketing terms that refers to aggregating prospective buyers into
groups or segments with common needs and who respond similarly to marketing action.
Market segmentation also defined as the process of taking the total heterogeneous market for
a product and dividing it in to several sub markets or segments, each of which tend to be
homogeneous an all segmentation respect. Market segmentation is a consumer-oriented
process and can be applied to almost any type of market
There are 5 main types of market segmentation:
 Geographical segmentation፦ Geographic segmentation involves selecting potential
markets according to where they are located. This segmentation approach may consider
variables such as climate, terrain, natural resources and population density, among other
geographic variables. Markets can be divided into regions because one or more of these
variables could differentiate customers from one region to the next. For example, those
individuals who are living in wet and cold climates will favor warm, sunny destinations
for their holidays.
 Demographic segmentation፦This type of segmentation group market audience based
on demographics such as age, gender, race, education, occupation, and the like.
Demographics are the most common segmentation method and most consumers are used
to these types of questions.
 Product segmentation; These variables depend on the product or service to be marketed.
In the airline industry such variables include, journey purpose, the length of the journey,
the passengers’ country of origin, and the like. For instance, passengers could be
travelling for business reasons, therefore they may need to book for their short itinerary in
the last minute

4
 Behavioral segmentation: Behavioral segmentation is defined as the segmentation of
the market according to individual purchase behaviors. Behavior-based segmentation is
conspicuous with the benefits sought from the product, with the identification of specific
buying behaviors, in terms of shopping frequency and volumes of purchase
 Psychographic Segmentation; Psychographic segmentation could be used to segment
markets according to personality traits, values, motives, interests and lifestyles. A
psychographic dimension can be used by itself to segment a market, or it can be
combined with other segmentation variables. The psychographic variables are used when
purchasing behaviors correlate with the personality or lifestyles of consumers
Market targeting
Market targeting is identification of the market segments that are identified as being the most
likely purchasers of a company’s products. Once the market segmentation has been
completed, the company should be aware of the needs and wants of its selected segments. It
is in the interest of the business to identify any untapped needs in the marketplace, as there
could be customers who may not be adequately served by competitors. It is then necessary to
identify the most profitable segments and to decide which segments will be served. There are
three market coverage alternatives which can be applied; undifferentiated marketing;
differentiated marketing and concentrated marketing.
o Undifferentiated marketing; tt is a marketing strategy that focuses on the larger
market and aims to target as many customers as possible. Companies adopting this
marketing strategy aim to sell a single product to the whole market with the same
marketing campaign.
o Differentiated marketing; under this marketing, companies split the larger market
into different segments or consumer groups that share common characteristics and
select a market segment to which a company can best satisfy.
o Concentrated marketing: Concentrated marketing, also known as niche marketing,
is a strategy where a company focuses on serving a specific customer group. This
approach involves concentrating all marketing efforts and resources on a single
market segment to maximize the company's marketing effectiveness and gain a
competitive advantage

5
Market positioning
Is the act of designing a company’s offering and image to occupy a distinctive place in
the minds of the target market. The goal is to locate the brand in the minds of customers
to maximize the potential benefit to the firm.
Firms formalize “positioning statements” which specify the position they wish to occupy
in their target customers’ minds, relative to other competitors’ products or services.
Customers continuously compare products or services. Therefore, marketers must build
their positioning strategies to improve the customers’ (and prospects’) perceptions of their
products. Effective product positions have four important characteristics.
Firstly, they are built around benefits for prospective customers. Secondly, they
differentiate the specific firms’ products or service from those of key competitors.
Thirdly, the respective firms need to possess relevant skills, resources, and the credibility
to deliver on their implied statements and promises. Finally, an effective position is
defensible, which means that an aggressive competitor cannot act quickly to neutralize or
preempt another positioning strategy.

 Describe the base of segmentation


The bases used for effective segmentation should lead to segment that are ፦
1. Measurable /identifiable: the bases used should be preferably lead to ease of
identification in terms of who is in each segment. It should also be capable of
measurement in terms of the potential customers in each segment.
2. Accessible: here the bases used should identify lead to the company be able to reach
selected market target with in their individual marketing effort.
3. Meaningful: The bases used must lead to segments which have different preference
or needs show clear variation in market behaviour and response to the individual
designed marketing mix.
4. Substantial : the base used should lead to segments which are sufficiently large to be
economically and practically worthwhile serving as discrete market target with a
distinctive marketing mix

6
 List out the benefit of segmentation
Market segmentation has the following benefit፦
1. Increases clarity

2. Develops consumer insights

3. Improves brand loyalty and customer engagement

4. Streamlines mass customization

5. Optimizes for cost efficiency and resource management

6. Grows niche marketing capabilities

7. Promotes the application of business data

8.Enhances reliable assessments

9. Maintains freshness and new data

10. Stays focused on goals

11. Higher Customer Satisfaction

 Criteria for good segmentation

Identifying the requirements for effective market segmentation allows companies to


create marketing campaigns that are essential for their growth and development. Here are
the five criteria for effective market segmentation:

1. Measurable

The size and purchasing power profiles of your market should be measurable, meaning
there is quantifiable data available about it. A consumer’s profiles and data provide
marketing strategists with the necessary information on how to carry out their
campaigns.

7
It would be difficult to create advertisements for markets that have little to no data or for
audiences that can’t be measured. Always ask whether there is a market for the kind of
product or service that your business wants to produce then define how many possible
customers and consumers are in that market.

2. Accessible

Accessibility means that customers and consumers are easily reached at an affordable
cost. This helps determine how certain ads can reach different target markets and how to
make ads more profitable.

A good question to ask is whether it’s more practical to place ads online, on print, or out
of house. For example, gather data on the websites a specific target market usually visits
so you can place more advertisements on those websites instead.

3. Substantial

The market a brand should want to penetrate should be a substantial number. You shoul d
clearly define a consumer’s profiles by gathering data on their age, gender, job, socio -
economic status, and purchasing power.

It doesn’t make sense to try and reach an unjustifiable number of people, you are just
wasting resources. However, you also don’t want to market the brand to a group too
small that the business doesn’t become profitable.

4. Differentiable

When segmenting the market, you should make sure that different target markets respond
differently to different marketing strategies. If a business is only targeting one segment,
then this might not be as much of an issue.

But for example, if your target market is college students, then it’s essential to create a
marketing strategy that both freshman students and senior students react to in the same
positive way. This process ensures that you are creating strategies that are more efficient
and cost-effective.

8
5. Actionable

Market segments need to be actionable, meaning that they have practical value. A
market segment should be able to respond to a certain marketing strategy or program and
have outcomes that are easily quantifiable.

As a business owner, it’s important to identify what kind of marketing strategies work
for a certain segment. Once those strategies have been identified, ask yourself if the
business is capable of carrying out that strategy.

2.2. Describe how the company’s segmentation, targeting and positioning strategies and
identify the basis of segmentation that the company utilizes.
As a company which engaged in a highly competitive soap and detergent production
market, coma import export plc. Soap and detergent plant is expected to have a complete
and effective strategic marketing plan. To describe what is in the company regarding
marketing strategy; indeed marketing department in the company has annual marketing
plan which incorporate geographical market segmentation, segmenting potential
customers basing their wide area of living.
In the marketing plan company’s customers are divided as፦ Amhara region customers,
oromya region customers, tegray region customers and the like with a different product
brand. There are different product names, like BIlisuma Laundry Soap which the
company expects to sell this product in oromia region, Ashenda poly bag which the
company tries to link the brand name with the psychological makeup of the expected
consumers in the specified location.
There is also a sort of segmentation which is more of behavioural. In this segmentation
the company categorizes consumers as government organizations and non- government
organizations, and engaged to satisfy their need according to marketing feedback of the
organizations.
The company performs some activities in market targeting. They have assessed the
marketing conditions in some marketing regions and conclude that the political instability
in Tegray region and in some area of Amhara region will not be the right place for their
market at least for the year 2016EC. Then they focus Addis Ababa as the best alternative
market.
Marketing department plan include strong and continuous market advertisement in order
to make known the product with in the mind of consumers, but as the response from

9
department members indicated, no more formal product promotions are yet practical this
year.

2.3. Describe its strength and weakness regarding to segmentation targeting and positioning
As a company which engaged in a highly competitive soap and detergent production
market, coma import export plc. Soap and detergent plant is expected to have a complete
and effective strategic marketing plan. To describe what is in the company regarding
marketing strategy; indeed marketing department in the company has annual marketing
plan which incorporate geographical market segmentation, segmenting potential
customers basing their wide area of living.
In the marketing plan, company’s customers are divided as፦ Amhara region customers,
oromya region customers, tegray region customers and the like with a different product
brand. There are different product names, like BIlisuma Laundry Soap which the
company expects to sell this product in oromia region, Ashenda poly bag which the
company tries to link the brand name with the psychological makeup of the expected
consumers in the specified location.
There is also a sort of segmentation which is more of behavioural. In this segmentation
the company categorizes consumers as government organizations and non- government
organizations, and engaged to satisfy their need according to marketing feedback of the
organizations. Then we can say that, well defined market segmentation is the strength of
company’s strategic marketing management. On the other hand the company has to do
more on strategic market targeting and product advertisement to internalize its product in
consumers mind.
2.4. Define and explain
Products፦ It is the thing possessing utility. It is the bundle of value the marketer offers
to potential customers. A product is the item offered for sale. A product can be a service
or an item. It can be physical or in virtual or cyber form. Every product is made at a cost
and each is sold at a price. Each product has a useful life after which it needs
replacement, and a life cycle after which it has to be re-invented.
Customers፦ It refers to consumer markets, industrial markets, reseller markets,
international markets and govt. markets having its own characteristics. A customer is a
person or business that buys goods or services from another business. Customers are
crucial because they generate revenue. Without them, businesses would go out of

10
business. Every business fights to get customers by advertising their products heavily,
cutting costs to get more customers, or making unique products and experiences that
people love.
Prices፦ it is the amount of money asked in exchange for product. It must be reasonable
so as to enable them to pay for the product. While fixing the price of a product, the
management considers certain factors such as cost, ability of the consumers, competition,
discount, allowances, margin of profit etc
Consumer፦ It consists mainly of the people to whom goods are sold (consumer) and the
people through whom goods are sold (sales people, wholesalers, retailers etc.) people
include competitors also. This factor will be the reason as well as resources for success in
marketing.
Promotion ፦ It consist of all activities aimed at inducing and motivating customers to
buy the product. The selections of alternatives determine the success of marketing efforts.
Some firms use advertising, some others personal selling or sales promotion. Thus
promotion includes advertising public relations, personal selling and sales promotion
Distribution strategies፦ Distribution strategy is the method used to bring products,
goods and services to customers or end-users. Organizations can often gain repeat
customers by ensuring an easy and effective way to get their goods and services to
people, depending on the item and its distribution needs
2.5. Identify the product, price, promotion and distribution strategies of the company of your
choice.
The company clearly specify the possible product items which can be produced and
distributed to consumers in sufficient manner. The main categories of products for the
company are Laundry Soaps and Bathing Soaps with different size and packing design. As
the data indicated, the company uses variable pricing mechanisms, based on the sales volume.
When marketing activities show improvement the company increase the price of the product
which is not proper for customers. This shows the company has no well-designed pricing
strategy.
Promotion mechanisms and varieties of advertisement are specified in the marketing plan of
the company, even though not practical. The company has two heavy trucks purchased
purposely for the distribution of products at the right place of its customer’s site and
distribution strategy is well designed and practically performed.

11
2.6. Describe the strength and weakness of the company regarding its products, prices, and
promotion and distribution strategies.
To begin with the strength of the company, products are clearly specified with detail features
and the production potential of the company. The company also give greater emphasis for
product distribution and design strong and applicable distribution strategy. Pricing and
promotion mechanisms are not strategically designed. Pricing of a product is very flexible,
depending on the volume of sell and there is no strategically applicable product promotion.

To conclude; the company is proceeding with strongly designed product and distribution
marketing strategy, but with inadequate pricing and promotion strategy which needs greater
improvement.

12
Reference
 Andrew whalley, strategic marketing management. Accessed at ‘book
boon.com’ November 10, 2023.
 Camilleri, M. A. (2018). Market Segmentation, Targeting and Positioning. In Travel Marketing, Tourism
Economics and the Airline Product (Chapter 4, pp. 69-83). Springer, Cham, Switzerland. Accessed at
https://www.researchgate.net/publication/319085560_Market_Segmentation_
Targeting_and_Positioning/link/5a93fe15a6fdccecff05ee2a/download.
November, 15, 2023.
 Hashem, Aghazadeh,(2015).Strategic marketing management: achieving
superior business performance through intelligent marketing strategy, (11th
International StrategicManagementConference)Accessedat
https://www.google.com/search?q=strategic+marketing+management+pdf&oq
=strategic
November, 12, 2023.
 Philips Kotler, (2012.). Marketing management,14th edition,
 University of Calicut, India. Marketing management, study material, (2011
Admission.) Accessed at, https://www.ascdegreecollege.ac.in/wp-
content/uploads/2020/12/Marketing-anagement-Indian-Cases.pdf.
November 10, 2023

13

You might also like