Market Condition and Competitive Analysis for Bubble Shack Hawaiian Soap Co.

Market Condition and Competitive Analysis for Bubble Shack Hawaiian Soap Co.                      Product:  Coconut Volcano Hand Soap

Jonathan E. Rico

ECO/365

March 6, 2017

William Akamine

Market Condition Analysis 

Personal hygiene is a major factor in everyday living amongst society and the human touch, such as touching with one's hands, is one of the most frequent interactions between individuals.  The practice of handwashing with soap at critical times is completed by less than 20% of the population, and inadequate handwashing is also a major concern in industrialized countries.  The lack of education for using alone will create a market within itself.  By defining the market for Bubbles Shack Soap Company and looking at competitors, we will see the comparative advantages and international trade opportunities.   Then comparing the factors that affect the supply, demand and ultimately the price of the product to produce the total revenue is critical.  The promotion of the education and the investment from public companies could provide significant health benefits and could substantially grow the market and maximize the profit potential and propel the presence within the sector.

Soap Market

As a staple commodity, hand soap falls under a world market of soaps and detergents because it is considered to be a basic and essential need for people's lives.  Looking specifically into the soap and bath products (personal care) specific market several competitors lead the sector.  Primary competitors such as Colgate-Palmolive Company (Softsoap), Henkel Corporation (Dial) and Unilever (Dove) are the leading manufacturers, however, in recent years consumers have branched out to seek alternatives for purchasing and consuming soap and bath products.  

The major players within this sector have substantial capital to promote their product and educate globally throughout the world which will naturally boost their presence.  So looking at your company, you stand to have an impact locally and can reap those benefits as well.  Your soap lines are all natural and organic which are safer for the environment. The key in which to promote your products even more with the way consumers tend to purchase goods in current times. Plus, in recent years manufacturers in the soap industry have supported the education, and this allowed consumers to be more willing to give our products a chance.  Additionally, due to the downturn in the economy, many store buyers have been more open to trying new things to jumpstart sales ("Hawaii Tech Support," 2017).  

Comparative Advantages and International Trade

Comparative advantage plays a vital role in the marketing of your products because you have a market on local soaps in the islands and abroad with the consumer sought after product.  You are the single and only local manufacture of the organic and natural products "Made in Hawaii with Aloha" (Bubbles Shack Hawaii, 2015).   As stated by co-owner Ashley Harding, "The Bubble Shack team has been very proactive with the stores, always analyzing sales and improving products based on sales reporting and customer feedback. We also actively pursue new accounts every week" ("Hawaii Tech Support," 2017).  Getting the product manufactured at lower prices in the islands make it cheaper for the consumer and allow for costs to be lower.