Richardson-Vicks: relevant background information
- Leading worldwide marketer of health, personal and nutritional care related products.
- Brand recognition based on cold treatment market, VapoRub. (25% market share in US)
More than 50% of sales were from international operations, with standardized marketing strategy in all countries, focused on functional and chemical aspect of the product.
Skin care segment: Clearasil – leading acne product in US, Germany and Japan (Before 1975, was first-mover in approved treatment for acne in these countries.)
Nippon-Vicks: wholly owned subsidiary of Richardson-Vicks in Japan
- Initial growth was very accelerated.
- The firm was not associated with cold treatment as in the US, but with
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Fierce competition, both local and foreign brands. Could also be distributed anywhere. The products were mainly cleansing bar soaps, creams, foams, all marketed for general skin care (not necessarily for acne specifically).
Analysis: poor positioning considering market characteristics and distribution systems
Clearasil’s introduction in Japan was initially successful, but mostly because it had the first mover advantage. Being the first product to be adversities solely for acne treatment, Clearasil initiated the market in Japan. However, as local and international competitors entered the market, Clearasil’s strategy showed to be inappropriate. Consequently its sales gradually decreased, never able to reach the initial levels.
One of the issues was the decision to register Clearasil as a drug, and the functional 3-way advertising of the product. Neither of them was suitable given the cultural acceptance of acne in Japan. Due to that, Clearasil was perceived as too strong, only to be used in extremes cases, which limited its target market.
Also, being registered as a drug limited the distribution system to only drugstores, and could be indicated by doctors or the drugstore staff since consumer patterns were directed by word-of-mouth. The decision to register Clearasil as drug in the Japanese market was not advantageous.
Another issue was Nippon-Vicks being associated with Colac (laxative product), which was not
The most distinct possibility that CleanSpritz has is to branch into the commercial cleaning industry. Only 31.5% of MJ Brenner’s overall U.S. sales derive from the sale of household cleaning products (which is where CleanSpritz’ current market is). 40% of its (MJ’s) sales come from industrial cleaning products. Not only could CleanSpritz claim some of that, but their market research showed that there was considerable interest from businesses to purchase their 3:1 concentrated formula.
Media has developed a specific perspective on how people should look. A flawless complexion has become one of the major goals for society. Many people suffer from different types of skin conditions but one condition most have in common is acne. Almost everyone in the world has to deal with at least some type of acne problem; whether it is a few pimples here and there, or severe acne. Acne solutions have spread world wide, and they are advertised everywhere people look around. One acne treatment that has grown successfully is Proactiv. Proactiv is constantly changing the faces of millions of people across the globe every day. The company Proactiv has been on a mission to help acne victims take control so that their physical and emotional challenges of acne are no longer a factor in life. Their vision is healthy, beautiful skin for all. The company does the best it can to promote their products daily. Whether it is on a billboard or a television commercial the product is always being exposed to society. Proactiv perfected their propaganda techniques by using plain folks, testimonial and bandwagon in their advertisements. They know exactly who they are targeting and how they are going persuade their potential consumers.
When the decision was made to introduce health conscience and organic products the company was moving in the right direction, but because these products were
Selling a product internationally along with the 4 P’s (planning, producing, placing, and promoting) process of a company is called global marketing (Global Marketing, 2017). Being global is important because companies are able to reach customers from all over verses in one particular town. Offering different products and services for a variety of
It is highly recognized in the market especially among teenagers. Traditional acne products are low price range and kind of old fashioned in terms of designation and package, which catches lower income and function oriented customers. Since the main ingredients are not a secret, other popular cosmetic brands can also develop similar products. L’Oreal Launched “Acne Response” new Adult Acne Product, treats acne with gentle formula of 1% salicylic acid and 2.55% benzoyl peroxide, retail Price of $24.99 vs. $39.99 for Proactiv, which soon caught big market share and attracted some of the loose proactive customers. New producers claim that it is the ingredient which matters, not the expensive celebrity commercials. With proper marketing strategy, it won’t be hard for them to share cups from Proactiv. Other competition came from Natural skin care products. Some biological cosmetic products with aloe vera, green tea, passion flower, or Gotu kola are claimed to work well to cure acne and skin bacteria. They are natural and green with less side effect and damage to skin. However, not every company can afford the heavy input in advertising. As the first modern acne prevention and treatment product shown in the market, Proactiv will still lead the market and enjoy the competitive advantage for years.
For baby boomer generation which is experiencing life changes brought by aging, they have shown increasing interests in cosmetics and toiletries, not only to enhance their appearance but also for other reasons. A simple example is that they use foundation with treatment ingredients to protect their skin against harmful UV rays, and to help a variety of skin problems.
The end of the first year, we had 30% of the products left, in view of the traditional market accounted for 40.5% of the overall toothpaste market, we decided to increase three sales people into traditional sales channels in the next year. Due to the selling of whole market Economy toothpaste are great, we add advertising investment. At the same time, the poor sell of children's toothpaste prompted us to reduce 5 million budgets on its advertising fee. According to the results of marketing, and sales of other companies, appropriate to improve the economy, white, healthy toothpaste price and their allowance, try to stimulate the sales.
Main competitors (Oil of Olay, Pond's and, Nivea) were situated in the HBA aisles of the stores while Plenitude products were merchandised in point of sales in the cosmetics' aisles next to L'Oreal cosmetics where the consumer is looking for cosmetics not skin care. The skin care consumer is in the HBA aisles!
As seen in exhibit 2 as well, the company’s unit share and dollar share steadily increased minimally from 2005 to 2007. Unit share increased from 21% to 21.3%, while dollar share increased from 15.7% to 16.1%. Similarly, US sales increased in HPL’s Target Markets for skin care, oral hygiene, personal hygiene, and hand and body care from 2003 to 2007, making the package more appealing to the company. With HPL’s sales into its retail channels increasing from 2003 to 2007, in addition to the increase in sales, label shares, and such aspects as revenue, it is evident that the company’s financial performance for the past few years has been favorable.
The quest for beauty is an endless endeavour at all times. Despite the old saying cautioning us that beauty is only skin deep, billions of dollars is spent on skin care products every year for men and women, young and old alike. In this multi-million-dollar industry, every company tries hard to maximize their profit. One of the most common methods they apply is market segmentation.
We aim to provide Australian and foreign consumers with the highest quality skincare on the market while promoting sustainable behavior and reducing our ecological footprint.
the case mentions that 3M Micropore Surgical Tape was widely used by teenagers in TW. This suggests that the potential customer group is willing to try non-traditional methods, in this case even if they are not branded as acne treatment.
It was very obvious that Chinese consumers were not interested in spending a lot of money on toothpaste, which was extremely different compared to other countries. CP China had a goal of dominating the market in China with this new product launch. They realized what their competition was doing and then decided to differentiate themselves by utilizing different graphics, flavors and aesthetics in their product. In order to reach their destination price, they had to really research and truly understand the market that they were about to enter. One of the first costs that had to be lowered was their media expenditure; this cost was way too high. The changes that took place in the CMF launch were appropriate because of multiple disagreeable components. Because the consumers in China were not familiar with the “breath strips”, CP China had to take initiative and rebrand them in order for consumers to understand. They changed the name to “cooling crystals.” Changing their celebrity spokesperson to Jay Chow was another change that took place. All of the rebranding changes that took place was definitely vital in order to get a kickstart in this new Chinese toothpaste market.
In 1988 and 1989 , its market shares were 33% of whole mouth-wash market while it slightly came down to 32.3% in 1990. It is good that the company didn't let its market shares decline despite introduction of new products. But it is also noticeable that the company did not make any progress in its market shares.
Concerning the product in itself, they chose it to be white in order to differentiate itself from cosmetics (colorful) and pharmaceuticals (transparent). Sanex should also be soft and slightly perfumed. Cosmetics had strong perfumes and pharmaceuticals were odorless. Sanex should produce more foam lather than pharmaceuticals, but less than cosmetics. Sanex would ultimately have to provide a day-to-day cleansing function but also a protective effect to ones skin, thus contributing for it to be healthy. A great deal of concern was also taken into account concerning the packaging of the product. In terms of pricing, and regarding the positioning of the product, Sanex should be proposed at a premium price, closely linked with the highest price of its cosmetic counterpart so that it could be reachable by mass consumers. This was considered to be the right price. Another important aspect concerning its large scale availability was distribution, and Sanex was thought out to be available in supermarket chains and retail outlets. Lastly, a great deal of importance was given to the communication aspect. Being a whole new product, produced by a company that was in this market for the first time, Mr. Muñoz realized that awareness of the product would be very important so he asked for an advertising campaign that should be adroit and credible, able