Question

Luban Company, is an Omani company in Salalah that uses Frankincense and other natural ingredients in...

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

Homework Answers

Answer #1

ANSWER:

--> If in case i was the marketing manager for the company, with a limited amount of budget i will provide these which are just used with the handmade essential oils and materials but when it comes to the packaging and the imprint on the materials, it will be done by the machines. Therefore, it is completely handmade and also as our orders are more. Hence, all the machines are necessary for those stuffs.

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