Group No: 7

Discussion Group: A2

Group members:

Muhammad Ahmed
Chattha (20P00024)
LAXO DETERGENTS- COMPANY Muhammad Qutab Shah

SYNOPSIS (20P00013)
Rasha Hafeez (20P00018)
Tahreem Sultan
(20P00032)
Which Company did we choose?

Laxo Detergents is the company that we chose. It is a brand of Mechon International. Laxo detergents
was established in 2016 by a well-renowned industrialist Mr. Akbar Mirza (Founder) with his son Mr.
Muhammad Abu-Bakr (CEO) and Mr. Muhammad Salman (Managing Director). The company is
dedicated to provide customers with exceptional cosmetics and household cleaning products and
services for industrial, corporate and public sectors which include offices, factories, residential societies,
markets, institutes, hospitals etc. Laxo detergents is also authorized by ISO, PEC and PCSIR.

Why did we choose this company?

It is a local company owned by a mutual friend of ours so as business students we want to work on it
and find solutions to the problems being faced by them in the current market.

What problems are being faced by the company and its product?

Laxo detergents is a relatively new company as it was established in 2016, they still need to work
and develop customer loyalty by providing good quality products and services. As Laxo
detergents is working in a market of vast competition, the first problem they face is not only
against the existing competitive companies but also the companies that are new in the market.
Secondly, as a new entrant in the market, Laxo detergents is also facing financial issues to keep
up with the current market. Another problem they are facing right now is the lack of awareness
amongst the community which results in low sales and eventually makes less revenue. The
biggest problem they are facing right now is of getting a license for importing chemicals they
need to manufacture their products as most of these chemicals are banned to import.
Furthermore, Covid-19 has also affected Laxo Detergent’s operations and sales; the company
relies on imported raw material (chemicals) to manufacture its products. Due to a halt in the
imports and exports, importing these chemicals has become slower and costly, which in turn is
affecting the company’s ability to meet its customer’s demands. All these factors combined are
leading to a loss affected the company’s ability to export its products and meet demands of
international customers.
How will we solve the problems?

To solve the problems identified above, we will research on the company’s products, its target

market, competitors and their products, pricing strategy, distribution plan, competitive edge of

the company, the company’s strategies, its strengths and weaknesses, external opportunities and

threats and develop plans and strategies accordingly.

2.2 MISSION
  To be the Centre of Excellence for chemical manufacturing industry.

2.3 GOALS

 To provide a ‘one stop cleaning solution’

 To be the leading brand in the innovative household product business solution in Asia

ANALYSIS:
Core Competencies:

LAXO DETERGENTS is providing a wide range of products with best quality, packaging
that provides adequate quantity of the products and low prices than competitor companies.

 Market share, Bulk selling

There are countless places in our local corporate sector to target which the company took
advantage of and there’s no such brand like Laxo Detergents who has made a separate head
to deal in bulks with the cooperate sector. The company focuses on selling in bulk as that’s
the major source of profit. It also sells through retail.
Laxo Detergents has 85% sales of bulk. The company’s loyal customers are as follows
Haier
Bahria Town
Beaconhouse School Sytem
Chaklala Airforce Hospital and other knows hospitals

 Other services
Laxo Detergents also provides janitor staff to different Gyms, Restaurants and Clinics. UFC gym
is a recent client of the company where our company has provided janitor staff along with
company cleaning products. Every janitor is given their uniforms.
Laxo Detergents earn 15% sales from retail stores. They have targeted those backward areas
where no known brand has reached yet, and if their products do reach then their names are
misspelled with some recognized brand name, logos are changed and there is mixing in the
material quality. Our company also deals with many local retail shops and pharmacies in Lahore.
 Pricing
During the Covid-19 Lockdown when many companies were selling sanitizers and disinfecting
sprays at higher prices Laxo detergents sold their sanitizers and disinfecting sprays at original
prices which are cheaper than many brands. PPE kits were provided to janitor staff free of cost.
They also provided walk in disinfecting tunnels to their loyal customer at half price.
SWOT Analysis
PEST ANALYSIS
 1. COMPETITIVE DYNAMICS
PORTER 5 FORCES
1. Competitive Rivalry. It is about how many rivals do you have and how is the quality of

their products and services is different as compared to your product? Laxo detergents is

working in a competitive market due to which it has many rivals and most of them have

an advantage over Laxo due to high amount of financing. A few examples are

Kohinoor soap & detergents (Pvt) ltd, Sufi soap & chemical industries private limited,

Paracha soap & chemical industries (Pvt), etc.

The market advantage that Laxo Detergents has is their model of selling their products in

bulk quantity and providing extra services along with it. Laxo along with providing

cleaning products, also provide cleaners to the companies who enter an agreement with

them and have their man force also clean the offices or workplace of their clients.

2. Supplier Power. This mainly deal with the number of suppliers a company has because

the more suppliers you have, the easier it will be to switch to a cheaper alternative.. Laxo

has many alternative suppliers but recently due to Covid-19 the ban on import of the

chemical that was required to make cleaning products forced the prices to rise and it got

difficult for Laxo to make high profits because Laxo did not increase their prices and

tried to provide their customers at the old price.

3. Buyer Power.  In Laxo Detergents case, 85% of the revenue is made from bulk sales

which shows that they mostly serve big companies and they do not have the access to

compare prices of Laxo with other brands as they work on one to one basis. Moreover,
 buyer do not have any place to compare prices instantly and the added service of

providing janitorial staff gives the company an edge over its competitors so Laxo has

more power over its buyers.

4. Threat of New Entry. This section is about the threat a new entry in the market provides

over your company. Cleaning products are cheap to make and new entry provides a lot of

threat to Laxo detergents and can weaken their position in the market.

5. Threat of Substitution. This section refers to the likelihood of your customers finding a

different way of doing what you do. The substitute companies can do is to hire their own

janitorial staff and just purchase the cleaning products. This is a threat for Laxo but the

buyer would have to go through a lot of hassle and manage their janitorial staff.