Splash Corporation
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Transcript of Splash Corporation
COMPETING WITH THE BIGBRANDS
Gurpreeet Singh Ujjwal Mehta
Rishab Pankaj
INDUSTRY OVERVIEW
• P83 billion in 2004
• Projected to grow at a rate of 5% each year
• Beauty products at fifth globally(Nielson)
• Facial care products(60% revenue)
INTRODUCTION • Founded in 1985(Philippines)
• Personal care products
• Bagong Pilipino, maka-Pilipino, kayang tumapat sa buong mundo
• Brand that endures
• Hortaleza’s father owned a chain of 21 beauty supply stores
RIVALS
MARKET SHARE (SKIN CARE)
Splash Unilever J& J Sara Lee0
2
4
6
8
10
12
14
16
18
2001
2002
2003
TARGET MARKET
MASA• C1 and C2(Middle class)
• D(Lower class)
• E(Extremely low class)
CONTINUE…
• Concept of hiyang
• Metrosexual trend
• Heavily influenced by brand endorsements by national celebrities.
BRANDS
• RBH COSMETICS(1985) Distribution
• BIG HAIR(1987) Became a fashion craze(P1 mn.)
RESEARCH INSTITITE• Established in 1997
• State-of-the-art facilities and equipment
• Began by hiring a lone chemist
• Growth and innovation strategy
• Innovative packaging/products
EXTRACT FACIAL CLEANSER
• Launched in 1989• First facial cleanser based on natural
ingredients • Two variants: Avocado-for dry skin,Cucumber
for oily skin.• Low-budget television advertisements• Nationwide awareness for the first time.
CONTINUE….
• P40 mn.(sales)• Lost competitive advantage.
MARKET RESEARCH• Primary research
Consumer safaris Focus groups
• Secondary research Research reports on the domestic and foreign markets published by other sources
Potential gold mine(AC Nielsen)
MARKETING STRATEGY
• Rational approach rather than personal approach
• Advertisement on popular “telenovelas”• Below-the-line marketing• Guerilla marketing.• Continuous innovation
DISTRIBUTION
• Hired 24 distribution companies
• General trade accounts(78% revenue) Small retailers(50,000 sari-saris)
• Modern trade accounts(22% revenue) department stores and supermarkets
CONTINUE….
• Highest discount comparison multinationals(8%)
GENERAL TRADE(DISCOUNT)
Splash organisation
17.5%
(List price)
Retailers
Distributors
17.5%
10%(List price)
DISTRIBUTION(MODERN TRADE)
• Transportation costs was borne by Splash• offered 40 per cent of the list price for margin,
trade spend, promotional spending payment for shelf space
SARI-SARIS• Variety store
• Operated in shopkeeper's house.
• basic commodities low costs.
• buy units of the product
• Allows credit purchases from its "suki“
• Strong social contact
EXTRADERM EXFOLIANT
• Launched in 1991• Cleaning skin by removing dead cells and
emege new cells• C1 and C2 market• recording growth of 211 per cent in 1997• domestic competitor developed 20%less Hired a celebrity
CONTINUE….
• Defensive mode Product was not registered with the Philippines Bureau of Food and Drug Safety Strategy failed Competitor wins market share
MAXI-PEEL
MAXI-PEEL
• Hired more famous celebrity endorser.• Small quantitis• Low price-D market segment
CONTINUE….
• Unilever and Sara Lee introduced facial cleansers• Competition Alternative product toner Positioned as a safer alternative and convince consumers to switch. Below the line advertisemet and Over the line advertisement
To suggest the skin peeling process induced by exfoliants caused long-term skin damage.
SKIN WHITE
SKIN WHITE
• Launched in 1996• variants for the whole body not only face• C1 and C2 market Competition Unilever,P and G, others local competitors introduced whitening products Silka introduced 15 per cent lower than competing products from Unilever.
CONTINUE….
• Introduced underarm whitening cream• Filipino used liberal amounts of underarm
deodorant(hot country) • Wear sleeveless shirts and tube tops• 29 % share whitening market by 2005.
BIOLINK
BIOLINK• Orange papaya-Hiyas(Mid 1990’s)
• Innovated a new green papaya as Biolink(2004)
• SRI scientists discovered that the papaya enzyme that stronger in unripe, green papaya.
• Hired professional advertising firm • Priced 10% higher than multinationls
CONTINUE….
CompetitionSpent huge money on advertisingSimilar products by competitorsnew entrants as competitive threat(2005)
CONTROL AND TRICKS
• Styling gels(2005)• Teenagers market• price-sensitive market(sachets)• 10% revenue(2004)• price 20 % lower than Dep Competition Dep from Schwarzkopf & Henkel
KOLOURS
• hair-coloring• primary consumers(adult women)• Price(30-50% lower) Competition L’oreal
FUTURE STRATEGY
• More focus on hair care products
• To launch more hair care products (shampoo and conditioner) next 3 years.
Competition• Pantene and Rejoice,Palmolive shampoos,
Sunsilk shampoos and Creamsilk conditioners.
CONTINUE…Splash Corp.
2004 2005 2006(F) 2007(F)
International
246 650 780 1008
Indonesia 157 400 480 576
Pharma 250 400 800 1000
Total 403 1450 2060 2584