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A product development plan by DLSU-D Marketing and Advertising students
Citation preview
SILKA GLIDE Hair Removing Lotion
Hair Removing Lotion | Athena Marie Espinosa Kamille Guerrero
Kristoffer Mercado Francis De Guzman
Carlo Mejia Von Ryan Masangcay
MKA 21 PRODUCT DEVELOPMENT PLAN: SILKA
SILKA GLIDE Hair Removing Lotion
2
I. Executive Summary
Cosmetique Asia was established in 2001, guided by its founder Mr. Alexander Co, who has over 35 years of experience in cosmetic retailing. With the introduction of its flagship brand, Silka Papaya, the company decided to venture into the growing cosmetic industry in the Philippines. After a good market acceptance of the Silka Papaya product line, Cosmetique Asia launched Juicy Cologne, the companys first foray in the perfume industry. Cosmetique Asia is continuosly growing and adding variety of cosmetic products to meet consumer needs.
Silka Glide is a product development plan for Silka product line under its manufacturer Cosmetique Asia. As the name implies, Silka Glide is a hair removing lotion that will offer its customers a satisfactory smooth experience.
Based on research, skincare industry is a king! A lot of Filipino consumer are in continuing romance with all things whitening that continued to drive sales for skincare and promises to continue doing so with a forecasted growth of 17% over the next 3 years. Even more astonishing is the fact that skincare category overtook sales of hair care products.
So, we have come up to a new developed product for Silka which is SILKA GLIDE. A product that offers customer two purposes: a lotion and a hair remover. Silka Glide highest priority is the need of their customer. We have found out that many customer especially the female market is having a hard time dealing in whitening their skin and getting rid of unwanted hair in their bodies. With Silka Glide, we will offer customer convenience through our product unique benefits.
Silka Glide will be targeting females and the GLBT market; those are the teens, married woman, young working professionals who are struggling to whitens their skin and remove unwanted hair in their bodies. Our primary competitors are Jergens, Avon products and Nivea who are major players in the skincare and whitening lotion category. Currently, Nivea is offering skincare products for men, which is why among the three, Nivea will be Silka Glide major rival in skin care competitive environment.
Silka Glide has a very strong position in the niche market because of its product features that includes whitening effect, softening relief, enriched with Vitamin E, papaya extract, dermatologist tested, hypoallergenic and hair remover. Its price will range from 100 300 pesos depending on its volume (ml).
SILKA GLIDE Hair Removing Lotion
3
Silka Glide will sold and delivered its product targeting at 100% placement in all the possible channels of distribution, starting from Key Accounts, Supermarkets, Groceries, Department Stores, Convenient Stores, Drugstores, Chain Stores, Sari-Sari Stores, Public Markets, and the likes. We will inform target audience about the new Silka Glide Hair Removing Lotion, its benefits and its competitive advantage through advertisement, sales promotion, internet promotions and events. With all this programs, we expect to generate a 12% increase in sales that will give the company an increase of about 868 million sales/profit for Silka Glide for the year 2013.
II. Situational Analysis
A. Category/ Competitor Definition
Silka Glide and all its competitor is specializing in skincare products under cosmetic industry.
About the Company Company or Brand Mission/Vision
KAO brands
Company Jergens
Avon Products,Inc Skin so Soft
Moisture Theraphy
Beiersdorf Company
Nivea
Cosmetique Asia Silka
Mission
Kao Brands' corporate Mission
Statement expresses our
company's vision
We will build a unique
portfolio of Beauty and
related brands,
striving to surpass our
competitors in quality,
innovation and value, and
elevating our image to
become the Beauty
company most women turn to
worldwide.
We at Beiersdorf understand
our consumers and delight them with innovative
products for their skin and beauty care
needs.
Cosmetique Asia will be the leading
manufacturer and retailer of
top-quality cosmetic
products for the Filipino consumers
and the Asian region
SILKA GLIDE Hair Removing Lotion
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Vision
To transform women's lives
through beauty.
To be the company that
best understands and satisfies the product, service and
self-fulfillment needs of women - globally.
Make our skin care brands to
be the most purchased by consumers
Cosmetique Asia will be the leading
manufacturer and retailer of
top-quality cosmetic
products for the Filipino consumers
and the Asian region
Brand Founder
KAO brands Company Jergens
Avon Skin so Soft
Moisture Therapy
Beiersdorf Cosmed Division
Nivea
Cosmetique Asia Silka
Andrew Jergens Sr.
David H. McConnell
Dr. Oscar Tropowitz.
Alexander S. Co
Charles H. Geifus
Management Team of Company or Brand
KAO brands Company Jergens
Avon Skin so Soft
Moisture Therapy
Beiersdorf Cosmed Division
Nivea
Cosmetique Asia Silka
Bill Gentner Andrea Jung Thomas B.
Quaas Alexander S.
Co
President and Chief Executive
Officer
Chairman and Chief
Executive Officer
Chairman of the Executive
Board
President and Chief
Executive Officer
B. Category Analysis
Factors
Analysis
Assessment Market
Attractiveness (+,-, 0)
Aggregate Market
Category size Skin care industry is king! Even more astonishing is the fact that in 2008, the skin care category overtook sales of hair care products for the first time, registering a 27% share of the market. http://www.personalcaremagazine.com/Story.aspx?Story=6052
+
Category growth The markets continuing romance with all things +
SILKA GLIDE Hair Removing Lotion
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whitening continued to drive sales for skincare, and promises to continue doing so with a forecasted growth of 17% over the next three years. Skin care is set to increase in constant value at a CAGR of 5% over the forecast period, increasing to Ps36.9 billion in constant value by 2015. http://www.euromonitor.com/skin-care-in-the-philippines/report
Product Life Cycle Silka skincare products are in maturity stage that focuses on creating brand extensions to boost sales. A new product development which is combining Silka lotion with hair wax is needed.
+
Sales Cyclicity Skin care industry is subject to general business
condition due to impact of the economic crisis opened up new opportunities for domestic manufacturers offering more affordable products. That will be the time where consumer became more prices sensitive.
+
Seasonality This particular product is not subject to season. 0
Profits Skincare sales grew 2% in 2010 to reach $10.1 billion.
+
Category
Threat of new entrants/exits No threat of new entrants. 0
Economies of scale In industries that are capital or research or advertising intensive, efficiency requires large-scale operation. The main source of scale economies is new product development costs. Thus, developing and launching a new variant of Silka products will typically costs over $1.2 million.
+
Product differentiation In an industry where products are differentiated, established firms possess the advantages of brand recognition and customer loyalty. Silka lotion with hair was has a niche position in the market that defines the product specific feature.
+
Capital requirements Capital requirement for developing skincare products is about 3,000,000 PhP.
+
Switching costs Globally, there are many skincare product companies that we must be constantly aware of and their decisions. Switching cost remains very low in this industry and it allows consumers to easily switch their brands because of product dissatisfaction, increased costs, or even out-of-stocked items.
+
Distribution Silka Glide will be sold and delivered to stores, supermarkets, convenience stores, physicians and beauty clinics. Supermarkets/hypermarkets made steady value share gains over most of the review period as leading chains opened new outlets and gradually expanded their assortments of premium and niche brands.
+
SILKA GLIDE Hair Removing Lotion
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The opening up of more convenience stores, neighborhood supermarkets and sari-sari stores further increased the size of grocery retailers dominant distribution value share.
Bargaining power of buyers Though Silka brands are already existing in the market, its future is dependent on buyers. The more intense the competition, the greater their eagerness for price reductions from the sellers.
+
Bargaining power of suppliers
In order to generate above average revenues, we need various quality materials for product production at best prices available. Suppliers of these materials need key customer like Silka for profitable revenue generation and will very likely have little bargaining power because of its small size.
+
Pressure from substitutes There are a substantial number of substitutes for all skincare products, creating an intense competitive environment.
+
Category capacity The production of good will just be enough to attend the entire consumer.
+
Current category rivalry The intensity of rivalry is very high in this industry. The competitive environment in skincare in the Philippines is relatively fragmented with undisputed leader Unilever Philippines Inc. accounting only for 16% of value sales in 2010.
+
Environmental
Technological As Philippines consumers become more discerning in terms of skincare, manufacturers continue to upgrade their product lines by introducing more effective products which make use of new advances in skincare technology. An example of a product which includes activated carbon, an ingredient which is known for its ability to clear all impurities from users skin for a clear complexion which is free from impurities.
+
Economic After struggling amidst the economic slowdown which hit the Philippines hard during 2009, skincare and personal care rebounded strongly in 2010. The improved economic performance and higher consumer and business optimism in the country brought about by the establishment of a new political administration engendered a conducive environment for more vibrant growth in skincare.
-
Political/regulatory Republic act NO. 370 food, drug and cosmetic act An act to ensure the safety and purity of foods, drugs and cosmetic made available to the public by creating the food and drug administration. BFAD (APPROVED AND CERTIFIED) If the economy is low or high it may be stated that it is due to establishment of the political administration that may affect the industry.
+
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Social As disposable incomes rose and consumer confidence improved, consumers are encourage to trade up to higher quality and more expensive brands, and also to buy personal and skincare products that would previously have considered to be non-essentials. During the review period, consumers in the Philippines became more conscious about the skincare products that they use.
+
Legend: + attractive, - unattractive, 0 not applicable
C. Company and Competitor Analysis
Competing Product Features
Product Feature KAO brands
Company Jergens
Avon Products,Inc Skin so Soft
Moisture Theraphy
Beiersdorf Company
Nivea
Cosmetique Asia
Silka Glide
Whitening effect Age Defying
Softening relief Cell repair and protect
Fruit extract
Skin firming Intensive moisture
Mineral lotion Anti-ich treatment
Enriched with Vitamin E Dermatologist tested
Hypoallergenic Quick absorbing formula
Hair remover (wax) Objectives,Target Market and Positioning Strategy Objectives (Growth, Hold or Harvest)
KAO brands Company Jergens
Avon Products,Inc Skin so Soft
Moisture
Beiersdorf Company
Nivea
Cosmetique Asia
Silka Glide
SILKA GLIDE Hair Removing Lotion
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Theraphy
Growth Growth Growth Growth
Jergens has its local price here
in the Philippines to increase its share in the
market; developing advertising
banners in the internet and
continue producing different
variants of lotion
As a direct selling
business, Avon is still increasing
promotional activities and still cutting its
price for Filipino
consumers
Niveas goal will always be
increasing market share
through qualitative
growth; today they are
focusing on increasing
their market for Nivea for
Men
Silka papaya is one of the
desirable lotion for
consumers in the Philippine;
theyre still pursuing to
increase market share and running
several television
advertisement as Iya Villania
and Erich Gonzales being the endorsers
Target market
KAO brands Company Jergens
Avon Products,Inc Skin so Soft
Moisture Theraphy
Beiersdorf Company
Nivea
Cosmetique Asia
Silka Glide
WOMEN WOMEN MEN,
WOMEN WOMEN,
GLBT
15 - ABOVE 13 - ABOVE 15 - ABOVE 15 - ABOVE
Positioning
KAO brands Company
Avon Products,Inc
Beiersdorf Company
Cosmetique Asia
SILKA GLIDE Hair Removing Lotion
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Jergens Skin so Soft Moisture Theraphy
Nivea Silka Glide
The Beautiful Difference
Beauty starts from within
Get fair, stay fair
Alagang Papaya, Alagang Silka!
Supporting Marketing Mix (Product, Price, Placement, and Promotion)
Marketing Mix KAO brands
Company Jergens
Avon Products,Inc Skin so Soft
Moisture Theraphy
Beiersdorf Company
Nivea
Cosmetique Asia
Silka Glide
Product
Jergens Original Scent; Ultra Healing; Age
Defying; Softening Relief;
Skin Firming; Skin Lightening
Lotion
Skin so Soft
Replenishing; Protect and Enhance; Intensive
Whitening; Age Defying and Renewing; Minerals
Mositure
Therapy Ultra Skin Renewal; Oatmeal Itch
Relief; Intensive
Treatment
Nivea lotion for Men
Whitening cell repair;
Revitalizing; Intensive Moisture
Nivea Whitening
lotion Nivea Extra Whitening
Lotion
Silka Papaya Silka Green
Silka Glide Hair
Removing Lotion
Price (PhP)
All Variants 500ml - 209. 75 200ml - 116.75 100ml 66.75
Skin so Soft 250ml 290.00 250ml 330.00
Mineral lotions 150ml 300.00
Nivea for Men
250ml 189.75 250ml 149.75
Silka Papaya 100ml 57.75 200ml 97.75 300ml 136.75 500ml 237.75
SILKA GLIDE Hair Removing Lotion
10
Skin Lightening
lotion 200ml 214.75 100ml 134.75
Moisture Therapy
250ml 330.00
125ml 89.75 250ml 144.75
400ml 229. 75
Whitening
lotion 400ml 299.75 250ml 199.75 125ml 129.75
Extra
Whitening 400ml - 324.75 250ml 214.75 125ml 139.75
Silka Green 100ml 61.75 200ml 109.75 300ml 151.75 500ml 252.75
Silka Glide
200ml 179.75 300ml 230.75
Placement
Supermarkets; Department stores; Skin
care products sections
(cosmetics)
Avon stores; Direct selling
Supermarkets; Department stores; Skin
care products sections
(cosmetics)
Supermarkets; Drug stores; Department stores; Sari-sari stores (cosmetics)
Promotions
Print Advertisement;
Internet Marketing; Point
of sale advertisement;
Outdoor Advertisements
Direct marketing;
Catalogue and Brochures;
Print advertisement;
TV advertisements
Print Advertisement
; Internet Marketing;
Point of sale advertisement;
Outdoor Advertisement
s
TV advertisements
; Outdoor advertisement;
Print advertisement
SILKA GLIDE Hair Removing Lotion
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Differential Competitor Analysis
Capabilities
KAO brands Company Jergens
Avon Products,Inc Skin so Soft
Moisture Therapy
Beiersdorf Company
Nivea
Cosmetique Asia
Silka Glide
Ability to Conceive and Design
Ability to Produce
Ability to Market
Ability to Finance
Ability to Manage
Analysis: The above differential advantage is based on the group research of each company. This determines which companies have the competitive product advantage. The number of stars above shows how competitive the company is. Prediction of Future Strategies
Strategies KAO brands
Company Jergens
Avon Products,Inc Skin so Soft
Moisture Theraphy
Beiersdorf Company
Nivea
Cosmetique Asia
Silka Glide
Current Strategies
Jergens advertise
their product through a T.V advertisemen
t; also with the use of Internet
marketing
Avon is able to maximize sales
to existing customers and continually gain new ones with
creative marketing. For example Online
Advertising, Local
Businesses
NIVEA reveals that the digital
marketing strategy has proved highly
successful with more than expected favorable
responses from its real fans, and awards
Silka increase their products
brand awareness thru mall visits with stalls that
allow consumers to test out the
product through demonstrations.
With the testimonials of customers who
SILKA GLIDE Hair Removing Lotion
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won from the international
arena.
had tested the product recorded and aired on T.V.
Print advertisements and billboards using credited
celebrity endorsers are used as well.
Expected Future Strategies
Jergens future
strategy could be
continuing what they
had already started. The results from their current marketing
strategy were all positive and raising the bar of
their advertisements through the
internet
Avon's future strategies
could be diving into the print advertising
world. Emotionally attachments could be the core of these
advertisements. Concepts that
relate to the whole aspect of
beauty to women.
Nivea's possible future strategy is to
use advertisements
that depict concepts and
images promoting
changing one's self for the
better. With the use of the
internet as its prime source of
reach to its target market.
Specifically interactive
media.
Silka's marketing strategy will go
unchanged in the future for the next first few years of so, to build brand loyalty amongst customers. If the
results are positive, Silka
would eventually think about new ways to cement
their brand image in the minds of
consumers.
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D. Customer Analysis
DEMOGRAPHICS, SOCIO ECONOMICS & PERSONALITY
Gender Females , GLBT
Age
Primary Target Market 13 19; 20 30; 31 46; 47 above Teens, married woman, GLBT and young working professionals who are struggling to whiten their skin without the use of any supplements. Also, consumers who wish the convenience of removing unwanted hairs on their body that will smoothen their skin out. Secondary Target Market
1. Supermarkets ( SM, Robinsons, Walter Mart, Rustans)
2. Body Spa Centers 3. Salons 4. Cosmetic clinics
Income
Primary target market: at least PhP 20,000 above Secondary target market: not applicable
Socio Economic
Class A , B and upper class C
PSYCHOGRAPHICS, PERSONALITY AND VALUES
Market Lifestyle
A
These are the females and GLBT market who are obsessed and desperate to make their skin whiter, smoother and moisturizes. They do not go to any cosmetic clinics they prefer the natural way. They take one step at a time of the procedure. They prefer removing unwanted hairs on their body on their own way.
Market Lifestyle
B
These are the market that is willing to spend their money on beauty clinics. They go to cosmetic clinics regularly and booked sessions with their cosmetic surgeons. They are very desperate to whiten their skins as well as remove unwanted hairs on parts of their body. They spend time and money to pamper their selves.
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CUSTOMER ANALYSIS
What do customers buy? Different consumer buys different skin care products appropriate for their skin. Based on research a lot of Filipino use Silka because of its Papaya extract that can really whiten skin.
Where do customers buy? Silka Glide target customer are concentrated and geographically based in any regions in the Philippines. But most of the customers are in Luzon area, especially in Region IV A where Manila is located. Also customer purchased merchandise in malls, supermarkets, convenience stores and beauty clinics and drugstores.
When do customers buy? Customers buy skin care products regularly. After they consumed it all, they will go to any store that sells it and buy. Silka Glide will be used by customer any time during the year and most especially starting the month of summer.
How customers choose? Customer choices are based on their knowledge about the product. The advertisements they see and watch. Also, by family, friends and relatives referrals. Silka papaya is advertised by their endorsers Iya Villania and Erich Gonzales.
Why they prefer the product? Some customer prefer the product because their loyal to the brand. Another reason is because they believe it would be effective and they want to try it. Also, they watch celebrity endorsers that says they use it to whiten their skin so customer are attracted and prefer the brand. Silka Glide will be preferred by customers because of its unique product feature.
How they respond to marketing programs? Customers will respond positively to marketing and advertising programs.
Will they buy it (again)? Yes, definitely. Silka papaya is one of the leading Filipino brands here in the Philippines. Its product meet customer needs and wants. With continuous marketing effort and the guaranteed effect of the product for consumers will encourage consumers to purchase again.
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PACKAGING
Silka Glide packaging will feature three elements that can attract customers to buy: - Whiter and smoother skin - Hairless skin - Enriched with papaya extract
Waxing Strips
Waxing strips will be included inside the Silka Box. This will be used to remove hair in the skin upon application of Silka Glide hair removing lotion.
SILKA GLIDE Hair Removing Lotion
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Silka Glide Box
Silka Glide box will contain a 200ml bottle of Silka Glide including 10 pieces of waxing strips; buying Silka Glide box is optional because customer can purchase Silka Glide separately with its waxing strips.
III. OBJECTIVES
A. Corporate objectives
To continuously provide top-quality cosmetic products to all its consumers at
an affordable price.
To help provide personal and professional growth among our employees
To build lasting relationship with our trade partner.
To help provide improvement in our country as well as our community.
B. Marketing objectives
1. Volume and profit Generates 12% sales by the end of the year campaign For the sales to grow by 12% there should be an increase of 939.6 tons ( 27% share of Silka x 29,000 tons x 12%) and Php 868M profit of SILKA GLIDE Therefore, there
SILKA GLIDE Hair Removing Lotion
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should be a total of 110,000,000 or 110,000 pieces (bottles) of SILKA GLIDE sold within 1 year to reach the target increase in total sales of Silka. 2. Time frame The campaign will be good for one year. It will start on March 2013 and will end on February 2014 3. Secondary objectives
Building brand awareness for the new Silka product line Silka Glide (hair
removing lotion)
Generate sales not just among the target market, but also to other target
market segments that can be tapped.
Eliciting positive, accessible brand responses
Forging brand relationship with customers that are characterized by intense,
active loyalty.
4. Program (marketing mix) We will inform target audience about the new Silka Glide Hair Removing Lotion, its benefits and its competitive advantage through advertisement, sales promotion, internet promotions and events.
Television commercial a 30s TVC will be launched in the month of March
start of summer to run until the month June.
Print Advertisement a print ad that will be placed in strategic places and
magazines that will focus on the benefits of the product; featuring its 3 elements:
white, hairless skin with papaya enzymes.
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Radio Advertisements a 30s Radio ad will be launched in the month of mid-
March and run until the month of June following the concept of its TVC.
Sales Promotion a free Silka gift packs will be given to customer by just
following the requirements posted in Silka facebook and website.
Internet Promotions a creative LIKE PAGE and website will be made for Silka
Glide to increase awareness by customers.
Events- a one month beauty pageant including all the preparations will be
conducted in Resort World, Manila to promote the new Silka Glide and find the
new Miss Silka.
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IV. PRODUCT/BRAND STRATEGY A. Customer target(s)
Females , GLBT
Teens, married woman, GLBT and young working professionals who are
struggling to whiten their skin without the use of any supplements. Also,
consumers who wish the convenience of removing unwanted hairs on their body
that will smoothen their skin out. see page 7 or 12
B. Competitor target(s)
Female and Male (Nivea)
Ages from 15 above who wish to have a smooth and whiter skin. see page 7
C. Product/service features
Whitening effect
Softening relief
Enriched with Vitamin E
Dermatologist tested
Hypoallergenic
Hair Remover see page 6
D. Core strategy 1. Value proposition Customers are being bombarded with claims and propositions from cosmetics brand. They are unclear what really works for the skin and why. Through Silka Glide, we will offer a new approach to hair removing treatments wherein consumers will have an access to the product and information necessary to gain the maximum benefit from using it at home. With this product, consumers can enjoy the lighter and hairless skin they want that can boost ones confidence without worries that come with shaving. 2. Product positioning Silka Glide- a hair removing lotion for all female and GLBT consumer who dealt with unwanted hair all their lives. It comes into two purposes: lotion and hair remover that contains hair removing ingredients which includes emollients, with moisturizer and whitening complex enriched with papaya enzymes and vitamin E that helps soften skin and makes it look younger. This formula mildly and safely removes your hair for long lasting smoothness wherein you can get the results both you and your skin want.
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V. SUPPORTING MARKETING PROGRAMS 1. Integrated marketing communications plan Communication Message: Alagang Papaya, Alagang Silka Brand: Silka Glide (Hair Removing Lotion) Tagline: Bring hairless beauty to life (with Silka Glide)
a. Sales Promotion
Glide with Silkas Free Packs With this program customer will have the chance to win Silka gift packs which includes Silka calendar 2013, 2 new variants of Silka Whitening Lotion (skin energizer and long lasting moisture); Silka papaya soap and the all new Silka Glide - hair removing lotion. This could be obtain by just joining Silka on Facebook; posting your name and email address and answer the questions given; for example Why Silka products won your heart?; contest will start on January 2013 and ends on March 2013. Three winners will be picked via fruit machine. Winners will be announced on Silkas page and email will be sent. Prizes will be sent by Silka.
b. Internet Promotions
Silka Glide Like Page on Facebook This program aims to reach consumer target through social networking site. With this program customer will be aware of the new product of Silka and will have the chance to know about more of the product, the benefits it gives, by just liking Silka Glide on Facebook. Also, consumer will have the chance to know the recent promotions of the said product.
Silka Website With this program customer will have the chance to post comments about Silka products. They could obtain information necessary to gain more awareness about Silkas product line. Also, this website will feature each of every new developed Silka products.
c. Events
Miss Silka Hairless Beauty Pageant Silka brand has been having an annual beauty pageant in different regions/cities in the country and has been running for almost five years now. For the year 2013, Silka will be having Miss Silka Hairless Beauty Pageant in Metro Manila where majority of their target market lived. The contestants should be required to have a white and hairless skin. The search will have 80 contestants and will be given a chance to showcase their talents, beauty and brains. This will be held on March 2013 at Resort World Manila.
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d. Advertising
Television Commercial SILKA Tama si Iya! Part 3 Silka Brand will launch their new TV advertisements with their endorsers Iya Villania. The main goal of the commercial is to introduce the new Silka product line which is the Silka Glide (Hair removing lotion). The main concept is about convenience wherein Iya Villania (endorser) is having trouble with hairs on her skin at the same time whitening it. So, the commercial will feature all the benefits and uses of Silka Glide and upon using it Iya Villania will give a testimonial about the product.
Radio Advertisements TAKAW TINGAN This Radio advertisement will run in fm radio in 90.7 and 101.9 radio stations for a 30 - 60 seconds spot. The idea of the Takaw Tingin radio ad will be retained but to add something for the Silka Glide, there will be an additional jingle about the new developed product featuring its benefits. Bring Hairless Beauty to life.
Print Advertisements Silka Glide print advertisement will focus on the benefits of the products, both physical and emotional. They will speak to the lifestyle of the target consumer aspires to have. It will be carefully placed to insure the proper affiliation.
2. Price Silka Glide pricing objective will be Penetration Pricing. One of the strength of Silka brand is their lower price but high quality products wherein they will offer more with a less price. Silka Glide aims to increase sales through awareness and brand recognition. Setting low prices will attract more customers for Silka Glide. The pricing tactic that will be used for Silka Glide is product line pricing because of it various product lines its price set will range to its product line for aided recall.
Silka Product Line (200ml) Price
Papaya Whitening Lotion 97. 75 PhP
Green Papaya Whitening Lotion 109.75 PhP
Silka Whitening Lotion 116.75 PhP
Moisturizing Milk Lotion 132.75 PhP
Silka Glide Hair Removing Lotion 179.75 PhP
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3. Channels We will reach customer through three distinct distribution channel and price point. The product will have intensive distribution system established across the nation (place).
Prestige--department and specialty stores
Broad--mass merchandisers, supermarkets, cosmetic discounters and drug stores,
Specialty--(Body Shop, Bath and Body Works), and Spas and salon.
Silka Glide will distributes aggressively its product targeting at 100% placement in all the possible channels of distribution, starting from Key Accounts, Supermarkets, Groceries, Department Stores, Convenient Stores, Drugstores, Chain Stores, Sari-Sari Stores, Public Markets, and the likes.
Northern Luzon POWER PLUS
ALDENTRADE
ALEC
ESS
HIYAS
N.C.R. OFFTAKE
Southern Luzon KIYA MARTHA
GHIKAR
COSLOR
RAP
RUPRA
VISAYAS BASIC ESSENTIAL
LDI
METROSTATE
MEGABRAND
ALBERTSON
MINDANAO 3-WAYNE CDO
AM ENTERPRISES
MILL CENTER
JSDR
RC DRAGON
ZAMJA
The above mentioned places are the distribution destination of Silka products and Cosmetique Asia.
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VI. FINANCIAL DOCUMENTS 1. Investment Plans
Assumption for 2013 Financial Statement
Expenses Cost
Sales Promotion 234, 543 PhP
Internet Promotions 586,940 PhP
Events 3,975,540 PhP
Advertising Program 8,989,680 PhP
Total Estimated Cost 13, 786,703 PhP
2. Estimates of Profitability
Assumption for Year 2013
Estimated Budget for Marketing Strategies
13,786,703 PhP
Total Expected Sales 868,933,515
Marketing Budget vs. Expected Sales: 2 %
VII. MONITORS & CONTROLS Marketing metrics
METRICS HOW DO WE MONITOR USING MARKETING METRICS
Customer
To monitor customer, Silka will conduct periodic surveys of customer satisfaction level and formally record and manage the action items that result from customer satisfaction surveys through Facebook Like Page, online blogging and comment boxes in strategic places of Silka Glide products.
Product Quality
Silka will monitor all the comments made by the customer regarding the product Silka Glide and see what it is needed to improve the quality and other factors of the product. Conducting a focus group discussion on brand awareness, equity measure, and response on product features and benefits.
Product Life Cycle
Conduct a continuous and regular tracking of where the Silka Gilde product will position in the product life cycle once it has been out in the market. This will be based on product growth and market acceptance.
Sales Volume
Ensure setup, plan-o-gram execution, as well as, the stocking, fronting, facing and rotating of the product. Audits will be performed regularly and resolve issues that may arise as a result of these audits, and solve problems at the store level in order to maintain the standards established in the initial sales agreement.
Market Share
Ensure market intelligence to provide the company and the product the view of the market using existing sources of information to understand what is happening in the market place. Conduct market share analysis, marketing cost and profitability analysis
Marketing Programs Conduct test and control areas to really measures changes cause by the marketing program. Conduct additional measure using media impact.