Competition Deck - Internal ICCC

“Works where it hurts.”

Team AEO2: Serene Chen Rosie Fan Katie Chen

Tiger Balm needs to focus on targeting greater market penetration and a wellness niche to move forward

Issue Identification Customer Segmentation ImplementationRecommendations

Acquisition of related companies

Target greater market penetration to increase

revenue

Enter the wellness industry with new

products

● Strong brands under large corporations are too expensive

● Acquiring brands active in one country are too limited

● Very broad sphere

● Many paths of product mix expansions are not correlated enough with our core brand

● Entering new markets means unfamiliar and difficult regulation procedures

● Customers in penetrated markets already have brand awareness

North America High revenue growth 28.3% growth in 2014

Existing plants for manufacturing

High adoption rate of Tiger Balm products


Asia & Middle East

Medium revenue growth 18.2% growth in 2014

Existing plants for manufacturing

Very high adoption rate of Tiger Balm products

Europe

Low growth 5.2% growth in 2014

Low adoption rate of Tiger Balm products

Very strict regulation requirements

OPPORTUNITY

Introduce new product line to penetrate Asian

and Middle Eastern markets

OPPORTUNITY

Capitalize on high growth through

penetration in the US market

Increase market penetration with a focus on the US and Asia/Middle East

1 2Expand the Tiger Balm

Active line to the US market

Develop and launch a new Tiger Balm Pink Patch

product in Asia/Middle East


Increased penetration of new consumer segments in developed marketsOUTCOME:

The US provides the greatest opportunity for further market penetration, specifically within the active lifestyle consumer trend

Region % Growth % of 2014 Revenue

Americas 28.3 11.9

Europe 5.2 9.9

Middle East 17.7 14.2

Asia 18.6 64.1

Total 18.2 100

1

31

20142008

2

Growing participation rates in sports among US high-schoolers exemplifies the trend of health and fitness

Rapid growth in Tiger Balm’s US market and previous dominance of US revenue in 2008 set precedent for a

second wave of growth in the US


Existing distribution channels, push marketing tactics, and sponsorship avenues can facilitate an easier transition of the Active products

Leverage our many existing outlets for Active product distribution

● 60,000 outlets● Chain superstores - Walmart

and Target● Pharmacy chains - Walgreens,

CVS

Utilize push tactics to heighten B2B sales efforts towards sports clinics

● Success in previous sales efforts

● Target end consumers of low to high-intensity, non-professional athletes

Leverage existing advertising and sponsorship avenues

● Sponsorship of marathons, local competitions, and other sporting events

● High-profile athlete endorsements

Customer Acquisition

Customer Activation


Barriers to Entry LOW

LOW DIFFICULTY

MEDIUM DIFFICULTY

Increasingly pharmaceutical companies are using both a traditional push marketing

strategy alongside a direct-to-consumer strategy

Develop a new Tiger Balm product targeted towards the niche feminine pain market in order to increase growth in the high-performing Asian region


TIGER BALM PINK PATCH

Greater customer retention through product packaging

Niche product vs. another all-around panacea product

Potential to better activate and retain more female customers8 in 10 people who use Tiger Balm continue to use it and

majority of users are female

Greater need for product in Asian culture and customs

Asia provides the least stringent regulations and offers the second highest revenue growth at 18.6%

MEET KIM

● 25 years old

● Lives in Korea

● Works in an office

● Prefers not to take pain relievers

or other drugs for feminine pain

Kim faces a different medical need than women in Western countries,

that can be addressed by the specialized Tiger Balm Pink Patch


TARGET: 230 Million

People Engaged in

Sports

Financial Projections for expanding Tiger Balm ACTIVE into the United States

Expected costs$250,000

1,500,000 Expected units sold in Year One


TARGET: 230 Million

People Engaged in

Sports

Financial Projections for expanding Tiger Balm ACTIVE into the United States

Expected costs$250,000

1,500,000 Expected units sold in Year One


1,000,000Breakeven point (units)

0.4%Of total market space

5,300,000 Breakeven point (units)

Revenue in 2022$15.6M

Tiger Balm PINK PATCH adds a significant new revenue stream in a low competition market


Break Even

4.56.0

8.5

11.0

13.0

15.6

The launch of Tiger Active in America and Tiger Balm Pink Patch could be completed in as soon as 1.5 years


Long-term strategy: Saturate American, Middle East, and Asian markets and work on increasing user adoption in European

markets, becoming the world’s premier leader in topical pain relief,

Mitigating regulatory and competitive risks associated with targeting new customer segments


Problem: Stringent Regulatory Demands and Increasing Product Imitations

Repurposing an existing product - Tiger Balm Thin Patch - reduces the risk that the Pink Patch will find it

difficult to be approved

Lengthening the implementation timeline to allow for room in the event of a longer approval process

Mit

igat

ion

s

Outcome

Ability to expand both the Pink Patch and Active

products to new countriesImplement a seal and expiration date to further validate

and distinguish our product from fake competitors

“Works where it hurts.”

We welcome your questions.

Exhibit 1: Active Line Expansion

Exhibit 2: PINK PATCH Projected Sales

Exhibit 3: PINK PATCH One Time Costs

Competition Deck - Internal ICCC

Business