Team 5 Darren Elgin Emmanuel Fion Ravethi Ubai
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1 Team 5 Darren Elgin Emmanuel Fion Ravethi Ubai
2 Mentholatum Marketing Objectives (A) Target Market Gain greater insights into the psychology of teens aged who have regular acnes problems Assess the changing dynamics of the teen market from their habits to media consumption to gain new consumers (B) Product and Promotion Drive greater awareness of brand and product Encourage initial trials Promote and educate consumers on product benefits for skin care and connect with target audience.
3 Mentholatum
4 COMPETITORS Johnson & Johnson -Clean & Clear Nexcare -Nexcare Acne Patch
5 Johnson & Johnson
6 Nexcare
7 Macro-environment Political Singapore has a high political stability. Impact: It is safe for Mentholatum to expand into the Singaporean market. Economical E1) Majority of teenagers living in Singapore (56%) get less than S$200 in a month. Impact 1 : Not very strong spending power among target audience, need for price regulation. - E2) Singapore is one of the top 3 in Foreign Trade & Investment and ranked first as a city with best investment potential. Impact 2: Mentholatum can invest in the Singapore market.
8 CONT D Socio-Cultural 1) Multi-cultural society. Impact 1: Mentholatum may need to regulate its use of ingredients, etc change certain ingredients which may not be suitable for the Singaporean populace. 2) Majority of teenagers feels Acne affects confidence level. Impact 2: Mentholatum can expect more customers as majority of target audience feels Acne impacts them negatively Technological: Makes use of latest technology, advances with new media. Impact: Mentholatum can engage these social network websites to reach out to target audience.
9 CONT D Legal: Tax exemption for new start-up companies. As of 2012, companies are granted a one-off 5% SME Cash Grant Impact: Mentholatum can expand into Singapore market to seek higher profits due to tax exemption. Environmental: Singapore encourages environmental protection. However, they are not very strict on the use of materials like plastic. Impact: Mentholatum can expand into SG market without having much worry on use of plastic
10 SWOT Strengths One of the top brands in Japan Products are able to get rid of Acne gently Weakness New product in market -> may not have much recognition. Opportunities Mentholatum Acnes line removes acne gently Many local teens make use of Oxy 10 Launched successfully in HK and Korea Threats - Strong competitors e.g. Johnson & Johnson and Nexcare, in the market
11 SWOT STRATEGIES S-O Mentholatum can emphasize on the fact that their product is able to get rid of acne gently which can appeal to the target audience since there is no pain when removing acne which consumers fear. W-O Mentholatum can use Oxy 10 to help publicise the new product, or emphasise on how the new product will be as effective as Oxy 10. Mentholatum can make use of its success in Korea to engage K-Idols to publicize the product S-T Mentholatum can make use of its prestigious reputation ( #1 in Japan for Daily Pimple Prevention ) to tackle strong competitors in Singapore. W-T Mentholatum can tempt consumers to try out the new product by touching on their needs and having new features that other products do not offer.
12 Survey results analysis Based on the survey results, it can be seen that the consumer motivational needs has not changed. The consumers in the survey worry a lot when they have acne and it deeply impacts their confidence.
13 Segmentation Segment Demographics Psychographic Behavioral Computer Addict Male years old Pocket money: S$ Likes to use computer for gaming and internet, is interested in online promotions, does not care much about image. Usage rate: Unlikely to use the product however this segmentation of people might consider using the products if the pricing is reasonable or if it has some promotions.
14 Segment Demographics Psychographic Behavioral Shopaholic Diva Female years old Pocket money: S$ Enjoys activities that involve hanging out with friends, shopping, is interested in purchasing products that will boost image and concerned about how people view her. Usage rate: Very likely to use the product as this segment of people are very concerned about image. Very high pricing may deter this segment from using the product.
15 Segment Demographics Psychographic Behavioral The Athlete Wannabe Male years old Pocket money: S$ Enjoys doing sports, has an interest in sports and does care about image. Usage rate: Likely to use the product as image is not a main concern for this segment and high pricing of the product will definitely deter from using the product. (Reasonable pricing)
16 Segment Demographics Psychographic Behavioral The Independent Woman Female years old Pocket money: Above $500 Likes hanging out with friends, interested in making money, cares about appearance. Usage rate: Does not have any main concern about the price of the product. Very likely to use the product even if the pricing is high.
17 Product Levels Core product 1. Kill acne bacteria fast. 2. Conditions skin to resist acne. 3. Acnes Cleanse, Tone, Moisturize and Treat acne-prone skin. Actual Product Sold in bottles and tubes Augmented product - Complimentary samples of other products and free delivery if ordered online
18 Product evaluation The product is in the Question Mark quadrant of the BCG Matrix, since there is high growth but low market share. Thus, there is a need to increase the investment in this product.
19 Product evaluation The product is in the Introductory stage of the product lifecycle since it has been introduced recently and needs to increase awareness among the target audience about product.
20 Price Quality Matrix
21 Positioning To all teenagers who worry about acne damaging their skin, Mentholatum is a brand that offers a variety of high quality and affordable skincare products. It is a brand that provides you with the best consumer experience you can ever have. It cleanses skin gently and kills bacteria to prevent pimples for clear skin.
22 Perceptual Map High variety Low Price High Price Low variety
23 Pricing Objective &Method The company s pricing objective is to Maximize Sales growth and penetration. The pricing method adopted for this product is value-based pricing.
24 Distribution Indirect distribution since this will allow the product to be reached out to a wider audience. Intermediaries Retailers: Watsons, Guardian and local convenience stores.
25 Advertising Campaign Plan Advertising message will be of Emotional Appeal Success and Confidence Ad can include Korean stars (i.e. K-Pop Stars) Show how good they look (Acne-Free) leading to boost in confidence Majority feels worried and lowered confidence due to Acne.
26 Advertising Budget 20% 40% 10% 30%
27 Television In the TV advertisements, focus on the pain-free acne removal, this will entice teens and adults who are looking for an alternative to traditional acne removal. Recommendation: Channel 8 and Channel 5
28 Internet Mentholatum should set up a official online shop so that consumers can buy products online at the convenience of their own homes.
29 Ideas Create a Facebook page and they can link it to their main website Buy online function
30 Teen magazines
31 Outdoor Posters
32 Sales promotion tools Sales Promotions: Consumers Online (Products offered min $19.90) Price-pack deal (Buy 2 and get a 10% discount) Sweepstakes (Spend >$50 and qualify for Mentholatum Lucky Draw) Trade Promotions: Distributors Trade allowances: More brand recognition
33 Preferred Scent 20% 30% 50% Minty Fruity Medicated Oil
34 References px s.html aspx
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