Question

Luban Company, is an Omani company in Salalah that uses Frankincense and other natural ingredients in making its products. The company has many hand made products like candles, soaps, shower gel and shampoos which differentiate it from its Competitors. The company’s slogan “hand made with love” is written on each of its products’ packages with bold “all natural”, and customers value the time and labor spent on making each unique product by hand. The company’s products ,especially ,the soap with pink Omani rose petals was a major success , and the demand for it increased among locals and tourists due to its reasonable price which is OMR 3 per bar of soap. The company buys the Omani roses from a supplier, a farmer (Mr. Ahmed) from Jabel Al Akhader who sells a bucket of rose to the company for OMR 1.500, and he was the one and the only supplier for the Luban Company. However, recent rains, snow and unpredictable weather caused the farmer a lot of damage; therefore, he increased the price of flower bucket to be OMR 2.500. The company’s marketing team warned that this will increase the price of the soap to become OMR 5, and customers might not buy it anymore. Then, the marketing manager suggested to replace roses with some rose water in the soap as the customers will not see the difference, the soap will smell the same and it is cheaper, so they don’t have to increase the price for the customers.

As the demand increased for its products, the company bought some new machines that helped in increasing the production rate, and soon its market share increased and the company opened new outlets at the Muscat Airport, the Wave, and City Centre, and it is planning to introduce a new product (a perfume ) that mixes smell of luban and Oud and sell it for OMR 55.

Tourists used to visit and have a tour in the company and see products being made and packaged. One day, a tourist took a selfie at the factory with a bar of soap in one hand and the giant machines behind him, and he wrote “handmade?!” and he posted that on his instagram account and tagged his friends. Soon everyone was asking questions and the company’s marketing manager and the public relation manager had to answer the questions of concerned customers.

Questions

1- Mention any three marketing environment

forces that affected the company with details.

2- Explain, the buyer’s decision-making process in terms of making decision on buying a soap.

3- What factors are influencing the tourist buying the soap?

4- Explain the impact of technology on Luban Companies business.

5- If you were the marketing manager for the company, how would you handle the Instagram case? ( problem solving)

Answer 1

Answer:-

1)

- Demographic Factors: gives client profile that is basic requirement for market segmentation as well as choosing target market.

- Economic Factors: gives economic forces that affect company's costs, incomes, and profits on one hand, and clients' purchasing forces and eagerness to spend.

- Socio-Cultural Factors: People purchase or favor those items which suit or supplement their social and cultural standards, values, traditions, and habits.

2)

Issue recognition: It happens at whatever point the consumer sees a significant distinction between present status of affairs and some ideal or ideal state.

Consumer decision-making: It is a cycle by which we overview the environment for appropriate data to make a reasonable decision.

Item decision: The consumer may finally pick the item based on a promotion.

Postpurchase evaluation: This happens when the consumer experience the item and chooses if it lives up to their desires.

3)

Brand Loyalty

Brand Awareness

Brand Image

Exposure

Advertisements

VIP Ads

Cost of item

4)

Explain the impact of technology on Luban Companies business. Soap effluents are among the most hazardous and potentially dangerous fluid wastes arising in networks. Ill-advised treatment of soap effluents may present health hazards through transmission of diseases to the soap gatherers and their families and impair the general environment.

5)

With a restricted financial plan furnishing these are simply utilized with handmade essential oils and materials however the packaging and engraving on it is done by machines, so it is absolutely handmade and as our requests are all the more so machines are required for those stuffs.

______ Please please like the answer _______