MARKETING

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MARKETING
Presented by Kristie Buchanan Joanna
Hinton May 2006
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Agenda

• The role of Marketing
• Developing a Marketing plan
• Marketing mix - the 4Ps
• Ethical legal considerations
• Case Study Aerogard
• Other Reckitt Benckiser TV adverts
• Questions!

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The Role of Marketing

• Generate new business opportunities
• identify un-met consumer needs
• develop new products to meet these needs
• Create consumer demand for our products
• develop strategies to make consumers aware of our
  products
• develop and implement plans to generate trial
• Manage the marketing mix of existing products
• ensure the product formulation and packaging is
  meeting consumer expectations
• ensure the price is competitive and the product
  is available where consumers expect it to be

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Developing a Marketing Plan
WHERE ARE WE?

• Where are we on the Product Life Cycle?
• Situation Analysis (SWOT)
• External trends what is happening and why?
  Competition, consumer trends, social trends etc
  (Opportunities/ Threats)
• Internal What are our strengths and
  weaknesses?

• Set the Business Objectives
• Grow sales, increase profit or both?
• Maintain or grow brand share vs competitors?

WHERE DO WE WANT TO BE?

• Develop Marketing Plan
• Strategic plan for achieving these objectives
  (4Ps)
• Develop Financial Forecast
• Build volume forecast
• Determine marketing investment required to
  achieve objectives

HOW SHOULD WE GET THERE?
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Marketing Mix 4 Ps
The major controllable variables that we have to
get the desired response from our target market

• PLACE
• How the products are made available to consumers
  making the product available in the right
  place, at the right time, in the right quantities

• PRODUCT
• Anything that can be offered to a consumer for
  use or consumption, that might satisfy a want or
  need
• Product Decisions include
• Brand/ subbrand name
• Design Features
• Packaging
• Quality

Target Market

• PROMOTION
• Communication of the product benefits that
  persuades consumers to purchase, e.g.
• Advertising
• Sales Promotions
• Publicity
• Personal Selling

• PRICE
• The amount of money charged for a product or
  service that consumers exchange for the benefits
  of having or using the product or service

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Legal Ethical Aspects

• Legal and ethical aspects effect every part of a
  brand and its products
• Deceptive and Misleading Conduct
• ACCC consumer watchdog
• Claims
• All packaging and advertising claims must be
  supported to the satisfaction of independent
  bodies (such as FACTS, NRA and TGA)
• Consumer Promotion
• all aspect of consumer promotions must be clear
  i.e opening and closing dates, structure of prize
  pool , entry mechanism
• Pricing
• Pricing and Terms of Trade must be consistent
  between the Manufacturer and Retailers
• Price maintenance/discrimination Manufacturers
  are unableto enforce a certain price point in
  any retailer. All prices areadvised as RSP
  recommended selling price

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Legal Ethical Aspects

• Formulations
• All products are subject to regulations and
  guidelines which outline
• raw materials which can / cannot be used for a
  product type (e.g. environmental / skin
  sensitisers)
• packaging warnings (e.g. Caution and Keep out of
  Reach of Children) - dependant on the formulation
• Packaging
• Packaging Covenant is a commitment by
  manufacturers to the Govt. to
• reduce quantity of packaging material e.g. less
  plastic in caps
• use more environmental packaging materials e.g.
  recyclable plastic
• implement an ongoing improvement plan
• Failure to conform, results in the manufacturer
  being responsible for collection of packaging
  from the consumer

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AEROGARD
Case Study

• MARKETING PLAN

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Situation Analysis Aerogard

• Product life cycle
• Aerogard is a mature brand within a developed
  category
• Aerogards role in the category is to lead growth
  through product development and innovation
• Market Trends
• The repellents category is valued at 10.5m and
  has grown 7 vs last year
• 56 of category volume is sold during summer
  (Nov-Feb) when insects are most prevalent,
  although the QLD market is less seasonal due to
  its tropical weather
• There are four main product formats within the
  Repellents category aerosols, roll-ons, pumps
  and lotions, however aerosols remain the most
  popular format (54 of sales value)
• Aerogard has 3 key competitors Rid, Autan
  Off
• Aerogard has lost market share to Off in the
  past 2 years

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Situation Analysis Aerogard (contd)

• Consumer Needs
• Primary Needs
• Efficacy it has to work!
• Secondary Needs
• Long Lasting
• Secondary Protection
• Moisturising
• Anti-itch
• Less Chemicals/More Natural

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Situation Analysis Aerogard (contd)

• Attitudinal differences exist between northern
  and southern regions of Australia which affects
  the emphasis placed on various category needs
• The North
• In the tropical regions of Queensland mosquitoes,
  sandflies and flies are viewed as health hazards
  -protection from disease carrying insects is a
  serious issue
• Superior efficacy is key in product choice
• The South
• Insects are considered to be more of a nuisance
  than a genuine health threat.
• The primary motivation for purchase is to repel
  however there is less emphasis on superior
  efficacy and a more of a focus on secondary
  benefits.

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Consumer Behaviour Aerogard

• Consumer Usage and Purchase Behaviour
• Personal repellents are accepted as part of
  summer life. They are durable, portable and the
  barrier/defence is constant and moves wherever
  you go.
• In the north, continual protection is required
  throughout the summer months. In the south,
  applications are less frequent, occurring mostly
  on specific outdoor occasions.
• Motivation for Category Purchase
• Key motivation is protection from insects. The
  primary category brands have the required level
  of efficacy thus individual brand choice is
  driven by product form and secondary category
  benefits.
• Applicator Forms Secondary Category Benefits
• Aerosol Moisturising
• Pump Sprays Sunscreen
• Lotion Pleasant Fragrance
• Roll On Less Chemicals

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Brand Positioning - Aerogard

• Positioning
• Aerogard is trusted by Australians to provide
  effective and safe protection from annoying and
  disease carrying insects
• Aerogard offers innovative products to cater for
  all family needs in convenient to use formats
• Aerogard Your best guard against insects

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SWOT ANALYSIS

• STRENGTHS
• Market leader
• Strong heritage
• High awareness
• Experienced sales force
• Strong distribution in supermarkets
• RD expertise

• WEAKNESSES
• Declining market share due to increased
  competitive activity
• Brand image becoming outdated
• High cost of active ingredients

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SWOT ANALYSIS

• OPPORTUNITY
• Alternative suppliers with cheaper ingredients
• New products with secondary benefits
• Alternative channels such as pharmacy and
  specialty stores

• THREATS
• Competitors gaining market share
• New competitors enter the market

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Marketing Objectives Strategies Aerogard

• Marketing Objectives
• Grow Sales by 5
• Increase profitability of brand by 2
• Grow brand share from 68 to 70

• Marketing Strategies
• Lead the market through continuous, superior
  product innovation
• Strengthen communication strategy by focusing on
  Aerogards unique
• benefits v competition
• Reduce reliance on deep price cutting to drive
  sales
• Implement product cost saving projects
• Modernise brand image

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Marketing Mix - 4Ps

• Product
• Launch new Aerogard products, eg with added 30
  sunscreen
• Launch new pack graphics that project a more
  modern brand image
• Initiate cost saving project to improve
  profitability

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Aerogard Lotionwith 30 SPF Sun Protection

• Enjoying outdoor life in Australia often means
  ensuring you and your family are protected from
  not only annoying insects, but also the suns
  damaging rays.
• This usually involves using two different
  products, a personal insect repellent and a
  sunscreen. Not only is this inconvenient,
  uncomfortable and costly, its also hard to know
  if one product is affecting the effectiveness of
  the other.
• New Aerogard Lotion with SPF 30 Sunscreen is the
  solution to these problems. It gives the
  protection against insects that you expect from
  Aerogard, while also providing full SPF 30
  protection from the sun.
• Aerogard with Sunscreen, now your best guard
  against insects and the sun in one!
• 125ml Lotion 10.99

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Marketing Mix - 4Ps

• Price
• Aerogards perceived superiority and market
  leading position must be reinforced with a
  premium price
• New product launches will command a premium price
  by offering unique benefits. Aerogard with
  Sunscreen will be priced at a 40 premium to
  regular repellents
• All variants will be price promoted during peak
  season in order to minimise consumers switching
  to cheaper competitive offers

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Marketing Mix - 4Ps

• Promotion / Advertising
• Use TV as the main media vehicle to maximise
  reach during the peak of the season
• Sample new Sunscreen at outdoor events to
  generate trial
• Ensure all advertising communicates the brand
  positioning ie. effective, safe protection
  against insects
• Continue to build positive association with
  health authorities
• eg. Queensland Tropical Health Unit, educate
  consumers about prevention of mosquito borne
  diseases

Invisible Family 30
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Marketing Mix - 4Ps

• Place / Distribution
• Supermarkets will remain the focus for
  distribution of existing and new product lines
• accounts for 94 of Aerogard sales
• Distribution objective for Aerogard with
  Sunscreen is 95 for supermarkets and 60
  Pharmacy

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Other Reckitt Benckiser TV Adverts

• Strepsils
• Dettol Hand Wash
• Veet

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Questions???