REPORT

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Presented to
Dr. Joseph Wakim
BAD 433
Notre Dame University

Presented by
Lina Khadij
Nay Harfouche

January 9, 2009

Introduction

Indevco group was founded in 1972 by George Frem. Likewise, continuing to respond to Lebanon's market needs, Frem founded Sanita in response to the country's emerging consumerism and lack of refuse disposal systems. In this report, we discuss one of Indevco Group’s companies, namely Sanita. We shed the light on Sanita’s role towards the individual, environment and society.

Our Vision and Mission statements

Vision: To protect the international public interest and to serve the community with the best products and high quality services.

Mission: What is good for the community is good for the company. We are committed to delight our customers with the best quality products in geographic dispersed markets using the most advanced technology, and keep recruiting, developing, and motivating our employees. We are concerned for the survival, growth, and profitability of the company through adhering to the ethical and environmental standards. The social spirit of our firm motivates us to keep enriching the lives of our people.

Opportunities and Threats:
Opportunities:
1. Sanita took advantage of the weak service of international companies in the sector of baby diapers.
2. Conferences & Exhibitions: Sanita sponsors regional United Nations conferences devoted to industrial topics, local exhibitions related to its core business activities, and exhibitions/events for children, scouts, and sports clubs. 3. Sanita has great opportunities to expand and go global.
4. Manufacturing and exporting blue tissues to England, which are common there.

Threats:
1. High cost of utilities (Electricity and energy)
2. High cost of clearing and forwarding the goods at the Beirut port.
4. Limitation of the Lebanese market.
5. International competition, especially low-cost producing countries, such as Egypt and Syria.

BCG Matrix

The highly visible presence of Sanita brand products - in homes, businesses, and public spaces across Lebanon is an indication of their success. Sanita is dominant in the Lebanese market. It has the highest relative market share position.
Concerning the industry growth, it is considered to be a slow growth industry since it is in its maturity phase, all potential buyers are current buyers, simulating more demand is limited, and technology is hard to innovate.
According to the above analysis, it can be deduced that Sanita is in the third quadrant, called "Cash Cows."

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Product-positioning map

This product-positioning map emphasizes on the tissue industry, which includes Mimosa, Fine, and Tendrex (Sanita). As the table above indicates, all three brands have relatively a high quality, but different prices; Mimosa (2750 L.L.), Fine (2500 L.L.), and Tendrex (2250 L.L.).

Environmental Audit

Having just recently emerged from a grueling 20-year war, Lebanon as a nation is focused on rebuilding and eradicating the destruction caused by the war. As such, it is not particularly strict in its environmental legislation.
Sanita’s main concern must be to adhere by the policies regarding land use and waste management. They must abide by regulation that limits the number of factories in certain residential areas and controls the management of waste produced and how it must be properly disposed of. This is especially important in the postwar environment in which Lebanon is trying to correct all the environmental damages that have taken place, and properly implement laws and regulation that will seek to protect the environment in the years to come.
Sanita must also pay special attention to a population of young baby boomers that have become increasingly global in their thinking and approach to issues such as the environment. As a result many citizens have become ethical buyers that focus on purchasing products that are produced without harming the environment.
As for the environmental audit Indevco, it is performed by an international firm. The audit includes checking on waste and chemical disposal techniques, the usage of appropriate filters, and the extent to which they are environmental friendly. Indevco is certified with ISO 14001 for environmental issues and ISO 9000 for quality control and with HACCP for Multipak. Also, many workshops and training programs are offered for employees for increased environmental awareness.
Sanita's Strategic Plan
Sanita’s current strategy is differentiation. In fact, Sanita is always trying to improve its products and transform them into a superior product relatively to the competing products that exist in the market. The company believes the most important factor in the success of a product and of a brand is customer loyalty; and the best way to get customer loyalty is to offer them top quality products that they value and benefit from. We can see from this that the strategy of differentiation is supported by a customer oriented attitude from the part of the company. In fact, when it communicates with its customers, it talks to them by putting emphasis on what those customers want and on their own personal needs. That usually give customers a sense of satisfaction and of importance and that will make them more loyal to the company and its products.
In addition to its differentiation strategy, Sanita also adopts a diversification strategy. In fact, it produces a variety of product for various segments of the market by meeting a wide scope of needs; its products include: Personal care products, home care products, medical products and institutional products.
The differentiation strategy is mainly supported by the quality policy of Sanita. In addition to these strategies, Sanita emphasizes on the following points:
• Coordination & cooperation among all departments
• Acquisition of appropriate technologies & materials Continuous evaluation of risks & opportunities in light of market research
• Wide sales coverage & effective sales support
• Effective & efficient use of resources
• Commitment of skilled, trained & motivated employees

Our Strategic Plan

Since Sanita occupies the Cash Cow quadrant in the BCG Matrix, it is essential for them to use diversification method as they are currently adopting. Through diversification, Sanita can widen its scope of manufacturing by producing papers. This way papers could be recycled and used in the production of tissues and sustain the environmentally friendly image of the company. However, they can add the product development strategy, which is an intensive strategy, by continuously improving their present products and services. This strategy must be used, because Sanita has successful products which are in the maturity stage of the product life cycle. It is important to attract present customers to try improved products as a result of their positive experience with the organization's present products. In order to maintain their strong position for as long as possible, it is essential to strengthen the management.

Conclusion and recommendations

In conclusion, Sanita is a large tissue manufacturer with a strong financial status and a high market position. Sanita has very strong brand name in Lebanon which is an added advantage that can help them reach customers with new products faster and easier. After the success of their recent marketing campaign, they promoted the extent of their care towards the community and the environment by positioning their aim for profitability second. This clarified their consistency with the content of their mission statement.
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HIGH (Price)

LOW (Price)

HIGH (Quality)

LOW (Quality)

Mimosa

Fine

Tendrex
(Sanita)