Transcript
Reckitt Benckiser Clearasil Makeup
Marketing Strategy and Planning (MKT 337)
Instructor Anthony DeLeonFall 2013
Piyanuch Kangwankijwanich (Tu)
Strategic Issue Assessment (SIA)
Strategic Alternative Reviews (SAR)
Marketing Decisions
5C ANALYSIS:
COMPANY, COMPETITORS,CUSTOMERS,
COLLABORATORS,& CONTEXT
Source: Reckitt Benckiser Group plc. (2012). Annual report and financial statements 2012.
Good Sales Performance
COMPANY: RECKITT BENCKISER
Rapid Action Good Smell
COMPANY: CLEARASIL PRODUCTS
Sources: Clearasil, Clean & Clear, and Neutrogena from Walgreens webpage. Proactiv product bundle from Proactiv webpage.
Affordable Price
COMPANY: CLEARASIL PRICING
Drugstores
Hypermarkets
Online Marketplace
“No Online Order”
COMPANY: CLEARASIL DISTRIBUTION CHANNELS
Successful Campaign
COMPANY: CLEARASIL PROMOTIONS (LATEST)
http://www.lizmarieblog.com/2013/08/clearasil-superfruits-face-wash-review/
Customers feel fun to
Join the contest Share content Get free samples
COMPANY: CLEARASIL PROMOTIONS (LATEST)
Target customers areboth genders aged 16 – 35
Target customers are
Female aged 14 – 40
Target customers are
Female aged 12 – 24
PRIMARY COMPETITORS
Credible& Reliable
Attractive
Optional
1
2
3
PRIMARY COMPETITOR: NEUTROGENA
Fast Action
Mass Retail Stores
Photo Contest
+ got award from Allure
+ P.O.P. promotions
+ be partner with CVS and Glamour magazine
PRIMARY COMPETITORS: CLEAN & CLEAR
Differentiate Strategies
• Direct Marketing
• Money Back Guaranteed
• Celebrities Endorsement
• Real Testimonials
• Product Bundle
MANY
PRIMARY COMPETITORS: PROACTIV
Acupuncture
Medical Laser
Nature
Prescription Medicine
SECONDARY COMPETITORS: SUBSTITUTE PRODUCTS
SATISFIED CUSTOMERS
Good participation on
Majority of Clearasil audiences are teenagers aged 18-24 who live in L.A.
• Bad advertising campaigns• Too young for me
UNSATISFIED CUSTOMERS
Bad comments
Harsh chemicals
Only one loyal customer segmentation, “male aged 13 – 17”
Source: Clearasil case study. Reckitt Benckiser (2008)
MAJOR CUSTOMERS
Makeup that will not block pores
Eco-friendly cosmetic products
Acne preventions for adults
WHAT CONSUMERS WANT?
Search this
On the Clearasil’s website
Inconsistent Price
COLABORATORS
Quality means products that passed the government regulations
CONTEXT: ECONOMY & REGULATIONS
Economic is a good !?!Because consumers switch to quality products with reasonable prices
SWOT ANALYSIS
SWOT
Internal Assessment
External Assessment
Strengths• Effective, yet affordable• Good brand recognition• Strong finance support• Strong R&D
Weaknesses• Harsh chemicals• Immature positiong• Similar to Clean & Clear• No online order• No strategic partnership
Opportunities• Acne in adults• Green trends• Reasonable prices needed• Non-clogged up makeup
Threats• Abundant of
substitute products
• Strict regulations
ALTERNATIVE SOLUTIONS
• Attract new customers (older generations)
• Maintain their existing customers (not to change brand when they grow older)
• Execute slice of life advertising• Endorse celebrities
Why?
How?
OPTION1: Acquire mature positioning
• Encourage customers to repeat purchase
• Launch smaller packaging & Travel kits• Reduce price & Push strategy• Sell products online• Create mobile apps
Why?
How?
OPTION2: Focus on consumer’s convenience
• Expand the target markets
• No brands stand for “makeup for acne people”
• Cooperate with L’Oreal • Launch sub-brand with full foundation
makeups• Acquire “makeup for acne people”
position
Why?
How?
OPTION3: Launch new makeup product lines
EVALUATION PROCESSES
Criteria Option 1 Option 2 Option 3
Finance Expensive Neutral Expensive
Time Long time Short time Long time
Competition
Intense Very intense Lower
Market Size
Increasing Shrinking Increasing
Market Growth
Growing Stable Growing
STRATEGY EVALUATION DIMENSION
Level of effort to achieve each goal
1 = ‘a little’ 2 = ‘moderate’3 = ‘much’
SAR EVALUATION CRITERIA
OPTION 3: Launch new makeup product lines
How to make this plan better
• Transfer knowledge to shorten R&D time and Cost
• Cooperate to shorten the product introduction stage
• Establish superior value, ‘2 in 1’ product lines both ‘cure’ and
‘cover’ acne
PREFERRED ALTERNATIVE
For females aged 25-35 who have acne problems and need non comedogenic makeup, Clearasil and L’Oreal, the U.S. leader companies, provide an effective cosmetic that would not block your pores and generate skin irritation. Unlike other competitors, our products are aimed to heal your skin problems and boost up your confidence.
POSITIONING STATEMENT
TARGET CUSTOMERS
MARKETING OBJECTIVES
• Reach the break-even point at the end of year 3
• Expand business to NYC, Chicago, Texas
• Grow 30% in the 1st year and 10% in two consecutive years
• Achieve 30% of total sales from online, events & roadshows70% of total sales from drugstores & hypermarkets
• Attain more strategic partners
• Acquire 2nd place in the U.S. acne treatment market in 5 yrs
• Gain attention and be buzzed among consumers and media
• Be recognized for “Makeup for Acne Consumers”
MARKETING MIX:
PRODUCT,PRICE, PLACE, PROMOTON, PEOPLE, PROCESS, & PHISICAL
EVIDENCE
PRODUCT: BRANDING
Brand NameCa (Clearasil) + Ra (L’Oreal)= “Beloved”
Brand Identity• Simply font & Clean design= an ease-of-use image• Leaf = Natural cosmetic
PRODUCT: BRAND PERSONALITIES
PRODUCT: THREE ELEMENTS
Core benefits
Actual performances
Augmented values
cover & cure acne
natural ingredients
medical substances
good aroma
compact
recyclable
30-days money back guarantee
24/7Hotlines
laboratory research
easy touse
PRODUCTS
Primer
Green tea reduces redness
Lemonreduces
scars
Foundation
Cucumbermoistures
skin+
SPF30
Skin tone
Concealer
Aloe Veraminimizespimples
Foundation
Powder
Indian claykills
bacteria
LoosePowder
Roseabsorbs
oil
Main sources: Benzoyl peroxide, Sulfur, Resorcinol-A, Triclosan & Salicylic acid
VALUE-BASE PRICING
CUSTOMER VALUE PRICE COST PRODUC
TCompetitiv
e price
Just noticeable
price
Avg $16 300% mark-up
Actual product
cost<$4
DIRECT DISTRIBUTION: WEBSITE
WHOLESALES DISTRIBUTIONS
Product testers Eye-level shelf
P.O.P. promotions
PROMOTIONS: ONLINE VS ON-GROUND
A.I.D.A. MODEL VS PURCHASING DECISION PROCESSES
AWARENESS INTEREST DESIRE ACTION RETENTIO
NNEED SEARCH EVALUATIO
NPURCHASE REPURCHAS
E
STAGE 1: Create Awareness by touchpoints bombard
STAGE 2: Increase interests by using bloggers
Send gift set1
2
3
Sharing on social media
Autograph event
STAGE 3: PURSUADE BY PROMOTING SALES & SERVICES
Encourage consumers to try
Sign up & get free samples Free shipping with minimum purchase
Sales forces in Beauty Assistant
character
STEP 4: Call-to-Action by makeup contest
Record makeup videoUsing Cara
Share on Social media
Most viewed isThe winner Advertorial & CSR
1 2 34
STEP 5: Maintain customers by keep impressing them
Sponsor customers’ special occasions
Get rid of acne mobile appOpen-house day for fans Sales booth
PEOPLE
PROCESS
PHYSICAL EVIDENCE
Thank you customers who share their stories on Cara’s media
KEY PERFORMANCE INDICATORS
1.Number of prospect customers: SEO, fans on social media, number of sharing content,
and number of participants in events
2. Status of existing customers:Transaction online and receipts
3. Return On Marketing Investment (ROMI):Actual sales VS Sale forecast
Brand awareness and recognition
FINANCIAL PROJECTIONS
STARTUP EXPENSE
SALES FORECAST
COSTS OF GOOD SOLD
CONTINGENCY PLAN
What if the plan does not work?
After year 3, Cara should do cost-benefit research. Stop the plan if it does not worth for investing
Or, if still have chance to rise up the sales,Think more about Alternative solution 1 and 2.
REFERRENCES
• Acne: Product lines, Cosmetic for acne prone skin, Men’s skin care, & Why Neutrogena?. Neutrogena webpage. Retrieved from http://www.neutrogena.com/
• Annual report & proxy statements: 2012 Annual report. Johnson & Johnson webpage. Retrieved from http://www.investor.jnj.com/annual-reports.cfm
• Bankson, C. (2010, December 15). Acne foundation routine flawless skin (full coverage tutorial) cystic & scaring diamondandheels14. Retrieved from http://www.youtube.com/watch?v=ex33wtqnNz8&feature=c4-overview-vl&list=PL79EC6E2F612D7634.
• Broadcast yourselfie: How teens use social media and why it matters to you. (2013, August 13). Brainsolis. Retrived from http://www.briansolis.com/2013/08/broadcast-yourselfie-how-teens-use- social-media-and-why-it-matters-to-you/
• Clean & Clear absorbing sheets. Clean & Clear webpage. Retrieved from http://www.cleanandclear.com/products/blotting-papers/clean-clear-oil-absorbing-sheets
• Clean & Clear, Clearasil, and Neutrogena prices. Walgreens webpage. Retrieved from http://www.walgreens.com
• Clearasil. (n.d.). Retrieved from http://www.mbaskool.com/brandguide/fmcg/2376-clearasil.html
• Clearasil case study. (2008). Reckitt Benckiser. Retrieved from http://www.rb.com/careers/sample-case-studies
REFERRENCES
• Clearasil official website. Retrieved from www.clearasil.us• Clearasil US Facebook. Retrieved from https://www.facebook.com/clearasilUS• Clearasil Youtube. Retrieved from http://www.youtube.com/user/clearasil• Combs, C. (2013, October 7). Clearasil US Facebook: Recent posts by others. Retrieved from
https://www.facebook.com/clearasilUS• David, R. (2011). Rethink the marketing funnel. The network is your customer. Yale University
Press. Retrieved from www.davidrogers.biz• Experian Information Solutions, Inc. (2013, August ). Teen and tween beauty and personal
care consumer-US: Reasons for using beauty and personal care products & Personal care product usage-Girls. Mintel.
• Euromonitor International. (2013, April). Beauty and personal care: Social media in beauty and personal care. Global Market Information Database.
• Euromonitor International. (2006, September 28). Biomaterials shape up acne treatments in the US. Global Market Information Database.
• Euromonitor International. (2011. March). Value perceptions in skin care. Global Market Information Database.
• Euromonitor International: Strategy briefing. (2011, February). Make way for generation Z: Marketing to today’s tweens and teens. Global Market Information Database.
• Global Data. (2012, September 5). Reckitt Benckiser Group Plc: Financial and strategic analysis review.
REFERRENCES• Help your teen get a handle on their spending. Paypal student account. Paypal website.
Retrieved from https://www.paypal.co/us/webapps/mpp/student-accounts• Kotowski, K., Lemley, A. T., Nicholson, A., Plocek, L., & Reid, K. (n.d.). Stridex advertising
strategy. Retrieved from http://www.docstoc.com/docs/31095088/Stridex-Advertising-Strategy
• Makeup. Retrieved from http://www.clinique.com/products/1599/Makeup/Foundations/index.tmpl
• Market Line. (2013, March 26). Company profile: Reckitt Benckiser group plc. Business Source Complete.
• Mintel. (2013, May).Facial skincare-US: Interest in facial skincare-Forms, Retail channels & Social Media.
• Mintel. (2013, August). Teen and tween beauty and personal care consumer-US: Facial makeup usage-Girls, Leading brands, Marketing strategies, & Purchase Decision Maker-Girls.
• Milemny, N. (2013, February 4). Foundation routine for severe acne (part one). Retrieved from http://www.youtube.com/watch?v=b1OllUVt36k
• Order now: Select a system that works for you. Proactiv webpage. Retrieved from https://www.proactiv.com/on/demandware.store/Sites-Proactiv-Site/default/COCart-AddProduct?pid=B7H6D3
• Panteva, N. (2013, January). Cosmeceutical skincare production in the US. IBISWorld Industry Report OD4208.
• Phillips, J. (2013, August). Cosmetic & beauty products manufacturing in the US. IBISWorld Industry Report 32562.
REFERRENCES
• Poggi, J. (2013, February 26). Nickelodeon targets 'post-millennials' in upfront: Children's Net Moves Beyond TV, Rolls Out App Along With New Shows. Retrieved from http://adage.com/article/special-report-tv-upfront/nickelodeon-targets-post-millennials-upfront/240045/
• Product line, & Win the day. (2013). Clearasil US webpage. Retrieved from http://www.clearasil.us/
• Rapini, Ronald P.; Bolognia, Jean L.; Jorizzo, Joseph L. (2007). Dermatology: 2-Volume Set. St. Louis: Mosby. p. 1371. ISBN 1-4160-2999-0.
• Reckitt Benckiser Group plc. (2012). Annual report and financial statements 2012. Retrieved from http://www.rb.com/investors-media/investor-information
• Romanowski, S. (2013, May). Infographic overview: Facial skincare. Mintel database.• Sharma, T. (n.d.). Clearasil. Retrieved from http://skincare.lovetoknow.com/Clearasil• Son, A. (2012, December). Acne treatment manufacturing OTC in the US. IBISWorld industry
report OD4125. • The foundation of female millennials’ makeup habits. Lab42 website. Retrieved from
http://blog.lab42.com/wp-content/uploads/2013/05/Millennials-Makeup-Infographic-FINAL1.png
REFERRENCES
Todoros, O. (2012, April 26). My photo albums is a free photography app that’s sure to surprise you! Phpt cruncher website. Retrieved from http://photocruncher.com/myphoto-albums-is-a-free-photography-app- thats-sure-to-surprise-you/Trends & data. Online retail sales growth, U.S. e-commerce sales: 2011-2016, & U.S. mobile commerce sales via smartphone, 2012-2017. Retrieved from http://www.internetretailer.com/trends/sales/U.S. Food and Drug Administration. (2013, August 2). FDA authority over cosmetics. Retrieved from http://www.fda.gov/Cosmetics/GuidanceComplianceRegulatoryInformation/ucm074162.htm#What_does_the_lawYoung, L. (n.d.). The women of social media report – digital women influencer study. Women of Google+. Retrieved from http://www.womenofgplus.com/2013/the-women-of-social-media-report
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