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Marketing Plan
MKX 5955: Marketing and the International
Consumer
Group Member:
Vichida Nithipiat (25853716)
Yang Li (25217496)
Xiaoyun Ma (25837893)
Dan Luo (25544136)
Due Date: 22/05/14
Words: 3462
Executive Summary
2
marketing objectives and deliver high quality product and services
to maximise customer value.
Table of Contents
Executive Summary...........................................................2
1. General Introduction....................................................4
1.1 Situation Analysis........................................................................4
1.1.1 Analysis of Skincare industry in China...................................4
1.1.2 Microenvironments................................................................5
1.1.3 Trend overview......................................................................6
1.1.4 Company Analysis.................................................................7
1.1.5 Entry mode............................................................................8
2. Market Segmentation and Targeting...............................9
2.1 Market Segmentation..................................................................9
2.2 Target Market.............................................................................10
2.3 Positioning & Estimate market share.........................................10
3. Marketing objectives...................................................12
4. Marketing Strategies...................................................13
4.1 Product & brand strategy...........................................................13
4.1.1 Market offering and five product levels...............................13
4.1.2 Packaging............................................................................13
4.2 Service strategy.........................................................................14
4.2.1 Fresh customers service.....................................................14
4.2.2 Loyal customers service.....................................................14
4.3 Pricing strategy..........................................................................14
4.4 Distribution strategy..................................................................15
4.4.1 Online shopping website & Natio official website in Chinese
.....................................................................................................15
4.4.2 Natio store in shopping centre............................................15
4.4.3 Agency................................................................................15
4.5 Promotion mix (IMC), strategy and rationale.............................15
4.5.1 Advertising..........................................................................16
4.5.2 Sales promotion..................................................................16
4.5.3 Events and Experiences......................................................16
4.5.4 Direct and Interactive Marketing.........................................17
5. Implementation and Control.........................................17
5.1 Tactics to implement strategies.................................................17
5.2 Monitoring strategies.................................................................18
6. Recommendation.........................................................19
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7. Conclusion.................................................................20
8. References................................................................21
9. Appendices................................................................23
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1 General Introduction
China is considered to be one of the fastest growing emerging
economies. China had a strong decadal growth rate of 10.5 percent
between 2001 and 2010 (IMC 2013). Such a high economic growth
rate has attracted many foreign investors. Moreover, China is the
largest emerging cosmetic and skincare market in the world (FBIC
2012). Facial masks have the highest sales among other skincare
and cosmetic products in China. This is why Natios lipstick and
M.A.C. are not chosen to be the first product launched in China.
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1.1 Situation Analysis
1.1.1 Analysis of Skincare industry in China
1) Industrial Players
3) Industry Attractiveness
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industry is considered to be attractive as industry is expected to
continually grow.
1.1.2 Microenvironments
The external forces must be considered in Chinas facial masks
industry. PESTLE Analysis is applied to analyse six external forces as
follows:
1) Political/Legal forces
2) Economic force
3) Socio-Cultural forces
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4) Technological forces
5) Environmental forces
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2013). Skincare products for men increasingly grow. Mens skincare
sector presented an increase in current value growth of 13 percent
between 2009 and 2010. Moreover, social media and e-commerce
significantly play as another distribution channels for skincare
producer to sell their products (APCO 2013).
Natio is plant based, simple and gentle beauty care and cosmetics
brand that suitably fit within contemporary lifestyles. Natio offers
varieties of products from skincare and cosmetics to body care by
targeting both men and women. Natios products contain natural
ingredients with 100% pure essential oil blends. The benefits of the
pure essential oil provide healthier and more radiant skin to
customer with wide range of skin types. Natio aims to maximize the
customer value by delivering natural, easy-going, and refreshing
products (Natio 2014). The products are currently available for
purchase via different channels including David Jones, Priceline and
some pharmacies.
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1.1.5 Entry mode
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Segmentati Segment A Segment B Segment C
on
Demographic
Age 17-24 25-35 36-65
Gender Female & male Female & male Female
Life-Cycle Young, high school Single, in labour Mature women and
stage kids and university force or/and men with family and
students newlyweds children
Income Limited income High disposable Higher disposable
income income and wealthy
Geographic
Location Beijing Beijing Beijing
Psychographic
Lifestyle Highly Concerns and Prefer the brand
influenced by conscious of that provides
trends, family health and skincare specialist
and friends beauty knowledge and
opinion and appearances suitable for their
media Prefer more skin types
(eg. Make-up radiant skin and Likely to stick with
tutorial on younger and the products that
YouTube) healthier looks used over a period
Prefer products of time
with natural
ingredients
Behavioural
Benefit Seek for the Price sensitive Loyal to one
sought high products Seeking for specific brand that
volume with low premium served their
or affordable products than satisfactory and
prices that mass products used for over a
suitable with period of time
their incomes.
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2.2 Target Market
According to Market segmentation, the target market for NATIOs
facial mask is Segment B or 25 to 35 year-old females and males
who have high disposable income and mainly live in Beijing. Their
lifestyles suggested that they are willing to spend money on Natios
premium facial masks that contain natural ingredients to keep their
healthy and young appearances. Also, Natios facial mask will satisfy
their behaviors. This is because NATIOs facial mask possesses
natural, easy-going, and refreshing values that will make the
customers feel comfortable and contribute more radiant skin. Hence
the evidence above illustrates that the target segment chosen for
NATIOs facial mask will be the best suitable and attractive for
females and males aged 25 to 35.
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industry (Euromonitor 2013). Hence these two facial masks
presented as reliable skincare products in Chinese market. The
position of NATIOs facial mask in the skincare industry will be
discussed by using the perceptual map as shown in Figure 1.
High Price
Shiseido
Inoherb
Herborist
NATIO Slowly respond with current trend
Quickly respond with current trends
Artistry
Loreal
Low Price
According to Figure1, the Natios facial masks are higher price and
more premium than LOreal and Artistry. In addition, Natios facial
masks are more affordable than Shiseido, Inoherbs and Herborist.
Customers will benefit from purchasing high quality Natios facial
masks that are non-toxic at considerable price, whereas other
brands offer customers with quality products but may be higher
price or products that contain chemicals and might be harmful to
skin. Natios facial masks will be able to compete in the industry by
positioning itself as a niche to gain competitive advantage via
strong beliefs and values of benefit of plant based and natural
ingredients that are not harmful to customers skin.
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3. Marketing objectives
Our marketing objective is to increase brand awareness, sales
volume and market share of Natios facial mask in Beijing.
In the short run, during the first six months, our marketing objective
is to sell 5,000 tubes of Natios masks and achieve about 30 percent
brand awareness. Initially, it is difficult for customers to recognize
the worth of Natios brand. People care more about a products
value and effect. Especially for a foreign skincare brand, females are
worried about the risk of destroying their skin. Thus, the sales
volume will not be so high.
In the long run, our marketing objective in the next two years is to
sell 28,000 tubes of masks. We are aiming to occupy 5 percent of
market share of Beijings facial mask market. Due to the augment of
sales volume in the first one and a half year, we will expand our
distribution channel. For example, the Chinese agent of Natio will
find more retailers to sell Natios masks in Beijings stores. All these
will help us fulfill long-term objective.
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4. Marketing Strategies
4.1.2 Packaging
The outside packaging of Natios facial masks will use pure lovely
light green which represents for natural ingredient; at the top of the
packaging is Natios logo; at the main side is an attractive young
womans face. Inside includes two partssame color as outside of
bottle and green mud mask.
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4.2 Service strategy
4.2.1 Fresh customers service
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S Market penetration pricing strategy will be applied by lowering the
price. Natio can reduce their price than competitors to penetrate
market rapidly and attract more local customers. However, Natio
can keep their price higher than the price LOreal and Artistry in
order to retain its position as premium product in the industry. This
consequently will be developed in the short and medium term to
achieve market objectives. Additionally sales discounts are
necessary to promote during the whole terms. For example, 20% off,
buy one gets one free, gift cards.
Natios staff also gives free mask sample as a present. At the same
time, if customers wish know more about the products, staff could
teach them knowledge about protecting their skin as well as provide
brochures with Natios products.
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4.4.3 Agency
4.5.1 Advertising
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holidays such as Chinese New Year, National Day and Labor Day, the
price of Natios mask could sale 20% off.
Natio is specific sponsored activities and events for its VIP members,
which including sports, arts, entertainment.
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5. Implementation and Control
5.1 Tactics to implement strategies
Natio will start our business expansion and facial masks will be
launched in January 2015 in Beijing, China. Table below shows the
marketing strategies along with timeline in order to ensure that
marketing plan will be conducted in timely manner. Full explanation
of each activity is provided in Appendix 9.
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5.2 Monitoring strategies
The marketing plan carries out the marketing strategies in all
aspects including the brand & product, pricing, service, distribution
and promotion mix are definitely not enough. In order to make sure
that the companys marketing strategies meet marketing objectives,
they need to be monitored.
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In general, in order to find out whether the marketing strategies we
provided were effective, we need to do some market research and
get some feedbacks from the consumers. We determined to use
questionnaire and personal interview to get comments from
customers. Before we start monitoring, it is very clear that
everything we have done is to boost our sales. Setting our service
strategy as an example, we provide make up teaching courses for
customers who spent over 1,000 CNY on our products. After
experiencing products, customers will be asked to fill a
questionnaire about their feelings toward this and recommendations
need to be gotten from them. This is aiming to know that whether
consumers are satisfied with our service and what need to be done
to make progress and to check our brand awareness in the market.
6. Recommendation
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On account of the attractiveness of Chinese skincare market, NATIO
should not only focus on the market of Beijing, it can enter into
other Chinese first-tier cities, such as Shanghai and Guangzhou,
simultaneously, so that it can gain more brand awareness from
different region of China. In addition, after NATIO has achieved a
stable market position, the parent company should develop special
products that are more suitable for Chinese consumers. For
instance, it should make its products cause less skin irritation.
Moreover, NATIO should keep pace with technological progresses
and make good use of them. We have realized the significant impact
of Wechat to Chinese people, and put some advertisement on it.
Further technological effect should be taken into account.
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1 Conclusion
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1. References
APCO World wide 2013, 2013 Chinese market study, APCO
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Indian Merchants Chamber (IMC) 2013, India calling, IMC, India
26
2. Appendices
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internationally or in a host-country. Overall, the nature of
competition in skincare industry contributes a fast pace movement
in China. Hence the skincare industry is considered to be attractive
as industry growth is expected to continually grow.
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Appendix 3: Administrative licensing system
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effective and useful communications tool. Also,
advertising on broadcasting media and television, press
radio and outdoor event are also beneficial (APCO 2013).
Social Media The most popular social media such as weibo and WeChat
are used for sharing information. Most brands use this
distribution channel to communicate with their customers
(APCO 2013).
The analysis revealed that Chinese skin care industry has some risky
for expanding business but at the same time Natio still has a
potential for future development in China
Strengths Weaknesses
Opportunities Threats
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of Chinese Individuals. This
influences individuals to
consume natural skincare
products
Advanced technologies such as
social media and Internet will
be another way to build
reputation and recognition for
Natios brand and products
information.
Ongoing Free Trade Agreement
negotiation will build up good
relationship between China and
Australia in terms of trading
and investment.
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Appendix 7: Competitor analysis in Chinese
facial masks market (Euromonitor 2013)
Herborist Local brand with market share of 1.9 per cent in the
(Shanghai Chinese skin care and cosmetic industry.
Jahwa United) Fast growing mens skincare and herbal ingredients
brands
Establish brand image by cooperating with local
hospital (Ie. Rui Jin Hospital)
Shiseido The brand possessed the market share of 1.6 per cent
in the Chinese skin care and cosmetic industry.
Japanese brands
Offered advanced technology skincare and makeup
products with higher price.
The company has been successfully operating
internationally over the past century.
Strong brand image; perceived as a luxury and reliable
brand
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Wide range of product lines with 100 facial masks
available at competitive price
Artistry Had possessed the market share of 5.2 per cent in the
(Amway) Chinese skin care and cosmetic industry.
Late 2011 and 2012 also saw the launch of Artistry
Intensive Skin Care Anti-wrinkle Firming Serum and
Renewing Peel Face Mask, with Smart Retinol and
Smart Enzyme as the major active ingredients
respectively, which claim to rejuvenate skin in a short
period of time.
rtistry Intensive Care Anti-Wrinkle Firming Serum won
the 2012 COSMO Annual Anti-age Award, In 2012
Amway was ranked fifth in beauty and personal care in
China
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Details
Strategies
We are planning to enter our facial mask officially into
Beijing, China at the beginning of 2015. We decide to
Natio store
setup a flagship store in the most prestigious shopping
construction
mall, Shin Kong, within two months (January and February)
to accomplish the whole store construction.
During the construction of the flagship store, at the same
time, we also need to consider the recruitment staff;
appropriate staffs for running our store should be hired
within January and February 2015. Specifically, we are
planning to employ 10 workforces all together, including
Recruitment
one store manager, who is expected to be responsible for
the whole operation, 5 sales assistants as well, who are in
charge of selling goods to customers and 4 cosmetologists
to help customers with coming into an actual contact with
our products.
In order to expand the products popularity in a new
market, publicity is a very crucial thing that we need to
take into account, and which should be done at the very
first beginning, and it will never stop. Our company
determined to divide the publicity into two parts, online
and off-line.
a) Online publicity
Online agencies occupy segments online dedicatedly,
using existing social media such as We-chat, microblog
etc. They are expected to publish the newest information
about our company, products, discounts and so in their
social circles (a considerably big social circle and an
Publicity excellent communication skills are preferred), trying to
build connections between costumers and our company
so as to boost the sales. The online publicity should be
done constantly all the time.
b) Offline publicity
The celebrity endorsement is an effective way to enhance
the popularity of our products, because of the reason that
our products are all about becoming pretty, so the
Chinese famous star Bingbing Fan is the perfect
spokeswoman of our brand. We are trying to contact her
in person and planning two sign a one-year contract with
her. Except for the celebrity endorsement, we can attach
posters as well on Beijings public transports such as the
bus, subway, taxi etc.
Display Products should be organized in February as we are
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planning to open the flagship store in March officially. We
goods in
are aiming to selling our facial mask, so we need to
store
ensure that we have plenty of inventories in store.
Our flagship store is expected to face the public on 3rd
March 2015, as that day is the womens day. Sales data
should be collected every three months from March to
December 2015. Following by being sent to headquarter
and analyzed by a dedicated data team.
Open the
A series of activities would be set up at that special day.
shop
Our brand spokeswoman Bingbing Fan would come to cut
the ribbon with our brand executive officer at the opening
ceremony; besides, our facial masks are all 30 percent off
on that day; on top of that, some samples are provided for
free to the customers as well. We are aiming to increase
the popularity through all those methods.
The new product line expansion project would be
New considered in accordance of the performance of our
product line products in 2015. According to the sales revenue and the
extension data analyses result in 2015, we will decide whether there
is a need to set up a new product line in Beijing market.
At the end of 2015, we decide to whether we need to
open a new sore in Beijing to fulfill customers
requirements. Before we decide to open a new store, we
Open a new
are planning to do some research, offering questionnaires
store
to consumers in Beijing, and the decision would be made
according to their responses and the actual performance
of Natio of the whole year in Beijing.
Budget Plan
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Cost
Rent 40,000 CNY
Wages 30,000 CNY
Online agencies 10,000 CNY
Celebrity & presenters 15,000 CNY
15,000 CNY
Social Media
13,000 CNY
Other relevant costs
Net profit (before tax) 377,000 CNY
Net profit (after tax) 49,010 CNY
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