Course: MKT 465 (Brand Management)

Section: 7

Semester: Summer 2018

LINE-EXTENSION of COSCO GLYCERIN SOAP

Submitted to:

Ms. Narmin Tartila Banu (NTB)

Senior Lecturer

Dept. of Marketing and International Business

School of Business and Economics, North South University

Submitted by:

Group Name: Brainiacs

Members

NAME ID
Farzana Afroze Rinti 1421266630
Anika Tabassum 1511746030
Md Ashrafuzzaman Ovik 1421229030
Md. Rownok Islam 1220763030

Submission Date: August 29, 2018

28th August, 2018

Narmin Tartila Banu (NTB)

Senior Lecturer,

Dept. of Marketing and International Business

North South University

Subject: Submission of a report on Line-Extension of Cosco soap.

Respected Madam,

With great pleasure we are submitting the group report which helped us to enhance our understanding of
the problems of a dying brand called “Cosco soap”. We have used our theoretical knowledge to formulate
marketing plan which would have been used in the real world. You have always been very helpful
throughout the semester regarding the project work, which has helped us a lot to prepare our work.
Without your support, it would have been very difficult for us to carry out the project work.

We want to thank you for your support and we are very happy to get the opportunity to work on this
project. We hope that our unwanted errors will be taken with forgiveness.

Sincerely Yours-

Farzana Afroze Rinti _________________

Anika Tabassum __________________

Md Ashrafuzzaman Ovik __________________

Md. Rownok Islam _________________

EXECUTIVE SUMMARY:

Cosco Soap is one of the brands under Commander Soap Co. Ltd. It is a leading manufacturer of soap and
detergent in Bangladesh. For over 50 years the COSCO brand has been associated with the finest quality
transparent glycerin soap. It owns the oldest existing factory in Dhaka's historic Tejgaon Industrial
District. From our research we have been observing some reasons behind the declination of COSCO Soap
and so we have tried to come up with an idea to go for expansion so that in report we went for lone
extension and introduced a very new brand that is COSCO Aloe Glycerin Bar in order to increase its sales
volume. We have chosen the TG the middle class and upper middle class female, made a new packet, and
we selected the brand ambassador Sakib Ummey Al Hasan (Shishir), and did the brand resonance
pyramid. For marketing we selected a slogan that is “Forever Eighteen”.

We hope with our strategies of line extension and changing some existing practices we could make this
brand a leading brand in Bangladesh.
Contents
1. Industry Overview: ................................................................................................................................... 1
2. Competitive landscape: ............................................................................................................................. 1
3. Company Background: ............................................................................................................................. 1
4. SBU description: ....................................................................................................................................... 1
5. Gap in the Market ..................................................................................................................................... 1
6. Removing the Gap: ................................................................................................................................... 2
7. The New Brand: ........................................................................................................................................ 2
8. Market Segmentation: ............................................................................................................................... 2
9. Brand Elements ......................................................................................................................................... 4
10. Designing 4P‟s........................................................................................................................................ 5
11. Brand Resonance Pyramid ...................................................................................................................... 7
1. Industry Overview: The soap industry in Bangladesh has grown noticeably and is now growing at a
pace with the whole world. The growth has led the industry to be divided into different segments body
soap, hand washing soap, toilet soap and beauty soap. The beauty soap industry is booming. Looking
back from the time in early 2000s to present, it is very much clear to state that the soap market has gone
through revolutionary changes. The customers are now savvy and market is changing with variety of
soaps with different companies so that it is a very competitive sector these days. Some of the leading
brands are Lux, Dove, Pears, Dettol, Keya, Tibet, Ice Cool, Meril Sandalina and all the bands have done
its line extension.

2. Competitive landscape: There are many direct and indirect competitors of „COSCO Beauty Soap‟ like
LUX Beauty Soap, Neem, Meril Beauty Soap, Tibbet Beauty Care Soap, Lily, Sandalina, Kumarika,
Aromatic, Lifebuoy, Dove, Ice Cool, keya etc. In case of beauty care, LUX has a very strong value
proposition in case of beauty care. Vivel and Dove also have a positive image in the market which
provides skin care facilities and protections. In terms of beauty care soap Cosco has great competition as
those brands are already grabbed its market shares. But in terms of glycerin soap Cosco has a competitive
advantage as in BD it‟s the very well-known for glycerin care. Cosco has another competitive advantage
in terms of pricing that way cheaper than other skin care soaps.

3. Company Background: Commander Soap Co. Ltd is the company that manufactures Cosco Soap. It is
a leading manufacturer of soap and detergent company in Bangladesh. Over the last 50 years Cosco in
well known for its transparent glycerin soap. In this company there are 100+ employees are working. This
company was founded in 1948 that it has owned the oldest surviving factory in Dhaka‟s historic. Over the
years, the iconic brand, Cosco Glycerin Soap, has become a part of Bangladesh's history and
manufacturing legacy and the company is proud to manufacture it. Since 1980‟s, Cosco due to its
availability, affordability and feeble competition, the soap was able to establish itself as, one of the major;
if not leading; brand of soap producers in the country. It was popular nationwide and had occupied the top
of the mind shelf of many Bangladeshi. Moreover the company stuck to its roots, not even changing its
packaging and was considered doing business in its niche.

4. SBU description: Cosco glycerin soap is the SBU of the Commander Soap Co. Ltd. The company is
generating profit from this brand by selling it to the target customers.

5. Gap in the Market: As we all know soap is a daily part of our life as a Cleaning product. There are
varieties of soaps dominating in the market serving us regularly. There is barely any soap available in our
country which focuses in anti-aging skin care with Ayurvedic remedies.

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We want to launch a soap with aloe vera gel with all anti-aging properties so that customer can put Cosco
soap when they think of purchasing soap in order to keep themselves forever young with freshness. Cosco
needs to launch a new product so that it can continue to exist in the market facing the changes in the
market. As it is a competitive market with a lot of options Cosco needs the changes to keeps its place and
acquiring customers of Bangladesh.

6. Removing the Gap: We would like to launch it by line extension as we are using established product
brand name for a new item in the same product category. It will be satisfying our target customers‟ need
that’s Cosco Aloe glycerin soap.

Aloe is well known for Ayurvedic remedies with various benefits those are special for anti-aging
properties, acnes, sunburn and give ultimate freshness. It will ensure Anti-aging skin care with all healthy
ingredients that would are 100% organic that will help people to look youthful. Aloe vera health benefits
for skin are Anti Inflammation, Anti-Aging, Heal wounds, Lightens scars and blemishes, Treat acne,
Sooths sunburn, Treats stretch marks, and Treats dry skin.

7. The New Brand: We are going to launch a new soap which is called „Cosco Aloe Glycerin Bar‟. We
think there is a market gap since no Bangladeshi manufacturer produces this kind of soap. Moreover
Cosco has already a big name in transparent glycerin soap market; this new brand will be very attractive
to our customers. Cosco Aloe Vera Glycerin Bar is formulated with thousand years of Ayurvedic wisdom
and experience. The combination of Aloe Vera and Glycerin will give the consumers the daily burst of
freshness. As we know that Aloe Vera which is prescribed in Ayurveda as a natural cooling agent and is
known for its soothing properties. It gives human skin the much needed hydration during summers,
making it supple and radiant. The soap has the attractive transparency and glycerin also. Cosco Aloe Vera
Glycerin Soap is produced using quality natural ingredient and resources with basic chemical compound
by our experienced employees and we strictly follow existing high industry quality standards.

8. Market Segmentation: Though soap is a generic product, we have decided to separate our target
market into many segments. Here is a table which will show the segmentation and targeting of Cosco
Aloe Glycerin bar and the needed explanation is also written respectively.

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 Segmentation

Chittago Dinajpu
Geographi Area Dhaka Khulna Sylhet Rajshahi Barisal
ng r
c
Gender Male Female

Age 10 11-20 21-30 31-40 41-50 51-60 61-70

Occupati Business Service Housewi

Students
on women Holders ves
Demograp
Higher
hic Educatio Secondar Undergra Post
Educated Seconda
n y duate Graduate
ry
Income Below 21000- 31000- 41000- 51000- 61000- Above
(BDT) 200000 30000 40000 50000 60000 70000 70000
Mid-
Usage Heavy
level
Behavioral
Purpose Anti- Skin
Beauty
of Use Aging Care
Outdoor
Psychogra Status
Lifestyle Enthusias
phic Seeker
ts
Social Middle Upper
Socio Class class Middle
Cultural Marital Unmarrie
Married
Status d
Table: 1

Target market: Bangladesh is a mid-low income country. But as the time progresses, the income is
increasing and people are becoming more beauty and health conscious. Keeping that in mind we have
targeted the mid income people as our target group for Cosco Aloe glycerin Bar. We are mainly targeting
upper middle class and middle class people specially the people from urban area. Young people now-a-
days are searching for a product which will beautify their skin, will not cause any harm.

Positioning: In order to position our product in our target customers mind, first we tried to get into their
mind by observing the market and doing research. Our positioning will be based on ‘first mover‟s
advantage’, because Cosco is the first aloe Vera glycerin soap in Bangladesh. Moreover we are re-

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lounging Cosco as the first all in one beauty soap which will solve all beauty and anti-aging problems.
We are using very vibrant color in our soaps .And our promotional activities will be very colorful so that
the customers feel cheer and youthful and relate that with our product and promotions.

Positioning Statement: The women who are very beauty concern and want to get fresh younger looing
skin without using any harmful comical so Cosco Aloe glycerin bar is the soap with all the natural
elements formula that repairs the skin naturally and gives fresh younger looking skin by the Aloe vera gel,
glycerin and using ayurvedic formula on it.

Points of difference (POD): Cosco Aloe glycerin Bar is different from other soaps available in the
market of Bangladesh in many ways. They are:

 It is the only soap manufactured in Bangladesh which contains Aloe Vera and a good amount of
glycerin.

 It‟ll work as anti-aging soap and will fulfill the need of perfume.

 It is the only transparent soap in Bangladesh and a quality product in an affordable price.

Points of Parity (POP): Points of parity include some common elements which are essential to make
soap. These are - It cleanses the skin, Beauty properties, Fragrance oil.

9. Brand Elements
 Logo: Over the last 50 years Cosco is in the market and got the market acceptance.
COMMANDER SOAP Co. LTD did not change thelogo till now so as a line extension of Cosco
soap the logo will be the same for the new brand.

Figure: 1

 Slogan: We‟ll use „Forever Eighteen‟ as a slogan for Cosco line extension. The soap will give
youngest feeling with freshness and cheeriest feelings to the ladies who will use the COSCO Aloe
Glycerin Soap. 

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  Characters: COSCO Company will use young sensation Bangladeshi model „Sakib Ummey Al

Hasan (Shishir)‟ as its brand ambassador. She has huge lady fans and acceptance in Bangladesh.
So to promote the product, the company decided to select her.

Figure: 2

10. Designing 4P’s

1. Product
 Core Benefit: Anti-aging benefits with aloe vera gel

 Actual Product: The New Aloe vera glycerin soap with a new packaging and branding.

 Augmented Product: It‟ll have return policies and free home delivery.

 Potential Product: Cosco carrot glycerin soap, Cosco Tomato glycerin soap, and body wash.
2. Price:

LUX Sandalina Dove Cosco Old Cosco New

100gm 32tk 32tk 90tk 22tk 40tk
Table: 2

The competitors like LUX 100gm is taking 32, Sandalina also taking 32 and dove ins taking bit higher
that is 90tk.

Cosco glycerin soap previously taking 22tk gor 100gm but now we introduce a new brand the Cosco Aloe
glycerin bar and set the price as 40tk for 100gm.

As we are giving a very new soap in the market and giving very special benefits like anti-aging
properties, and freshness with ayurvedic formula so we set our price higher than the LUX and Sandalina
but lower than the Dove because our target market in the Middle class and upper middle class.

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 3. Place: The Aloe Glycerin soap will be sold from the local retailer stores. We‟ll also place it in
the well-known super shops like Agora, Meena Bazar, and Lavender.
4. Promotion: For promotion
 TVC: To draw attention of the customer we will use Television advertisement where celebrity
Ummey Al Hasan will be used as Advertisement actress. 30-40 seconds ad will be displayed on
the renowned television channels of Bangladesh. It will try to form emotional and behavioral
connection with the customers through TVC

 Print advertisement: COSCO‟ brand company will promote its brand through various types of
renowned magazines like Bengali Times, Weekly Ekhon, Bartaman songlap etc. and newspapers
like Prothom Alo, Kaler kantha, Jugantor etc.

 Billboard: It is a large outdoor advertising device which is found along the busy roads and high
trafficking areas. It will put attractive billboards in the busiest areas of the important cities like
Dhaka, Chittagong, Sylhet, Khulna, Rajshahi, and Barisal

Figure: 3
 Social Media: Facebook page named „COSCO Glycerin Soap‟ where it can provide all
important updated information about the soap. The company will also put TVCs on the Facebook
page to encourage and educate customers.

 Celebrity Endorsement: Cosco Aloe glycerin soap has selected to use Bangladeshi model
Ummey Al Hasan to be the product spokesperson. Ummey Al Hasan has lots of lady fans in
Bangladesh as she carries an image of trustworthiness.

 Sales promotion: COSCO will provide discount to their customers as a sales promotion. During
different occasions, like- Eid, Puja and Chrismas Company will introduce a new campaign „Buy
2 and get 5 Taka less.‟

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11. Brand Resonance
Pyramid Brand salience

When a customer thinks about buying soap 2 options come

1) Chemical soap or 2) Ayurvedic Soap

If select Ayurvedic soap it comes 1) Local Brand or 2) International Brand

If prefer local Brand Cosco Aloe glycerin soap will pop up in the consumer mind.

 Depth: This new Aloe glycerin bar will come up to the customers mind who are searching for
1. Younger looking skin
2. Fresh pimple less and
3. Soothing & glowing skin.
 Breadth: Customer will choose this soap because they can use it for preventing Anti-aging
problem with aloe vera gel and glycerin.

Brand performance

 Primary ingredients: Cosco Aloe glycerin soap is the 1st Aloe gel soap of BD with high quality.

Aloe Vera gel and glycerin that‟s transparent soothing Aloe soap for younger looking fresh skin.

It has a refreshing fragrance.

 Reliability: Cosco glycerin soap is serving the customer as very good quality glycerin soap for a
long period of time. Cosco has got the market acceptance for the quality so Cosco Aloe glycerin
soap also will get the reliability.

 Durability: The main brand Cosco glycerin soap successfully exists in the market for 50 long
years and going the business so launching a new brand the Cosco Aloe glycerin soap that‟ll also
get the market acceptance.

 Style and design: The design, color and the fragrance is very refreshing that give the vive of the
desired quality.

Brand imagery

 User imagery: It will give the confidence of being younger and fresh. The customers will buy
this when they will feel the need of having a soap with all the natural elements that gives younger
looking, fresh skin.

 Brand personality: It gives sincerity about skin and excitement about youngness.

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  History: Cosco glycerin soap has a traditional look that got the acceptance and now it came with
new kind of premium look.

Brand judgments

 Quality: It is launched by a well-known brand with good quality Aloe Vera gel, glycerin and all
Ayurvedic ingredients. It will be made of all the natural elements and very high quality glycerin.
That will solve all the skin related problem without doing any harm and get the result very fast.

 Credibility: Perceived Experience: Cosco is present in the market for very long time and got the
market acceptance so the new brand has the credibility as it‟s under Commander Soap Co. Ltd
and got BSTI consent, so the new brand will also be a good soap.

Trustworthiness: As the company Commander Soap Co. Ltd is going business for a long time in
soap and detergent sector and doing business for long time so the new brand under this company
will get the trust of being a good soap.

Likability: Customer accepted the cosco brand and using it for last 50 years so the new brand will
also get the likability.

 Brand superiority: Customer will find this Aloe soap better than any other chemical soaps
available in the market.

Brand feelings

 Excitement: It‟s always excited to become young so this brand will give them that excitement of
being Forever Eighteen.

 Social Approval and Self-respect: Customer will get the social approval of being fresh, cheer,
and youthful as a result they will get self-confidence.

 Security: Customers will find security in terms of getting fresh younger looking skin without any
harmful chemical.

Brand resonance

 Behavioral Loyalty: In this stage Cosco Aloe glycerin bar will get a huge number of Customers
who will fall in love with this Cosco Aloe Glycerin Soap and buy continuously.

 The sense of community: They will get a Sense of community of being Ayurveda community.

It‟ll give them a natural feeling.

 Active engagement: Finally they will get involved in spreading good word of mouth and they
will also suggest the improvement needed to the company.

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