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A product development plan by DLSU-D Marketing and Advertising students

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  • 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

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    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).

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    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

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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 +

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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.

    +

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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

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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

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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

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    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

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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

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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.

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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

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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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    23

    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.