MARKETING
Agenda
•
The role of Marketing
•
Developing a Marketing plan
•
Marketing mix - the 4P’s
•
Ethical & legal considerations
•
Case Study – Aerogard
•
Questions!
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
Developing a Marketing Plan
WHERE ARE
WE?
WHERE DO WE
WANT TO BE?
HOW SHOULD
WE GET THERE?
 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?
 Develop Marketing Plan :
 Strategic plan for achieving these objectives (4P’s)
 Develop Financial Forecast
 Build volume forecast
 Determine marketing investment required to achieve
objectives
14 March 2016
4
Marketing Mix – 4 P’s
The major controllable variables that we have to get the desired
response from our target market :
PRODUCT
Anything that can be offered to a
consumer for use or consumption,
that might satisfy a want or need
Product Decisions include :
Brand/ sub-brand name
Design & Features
Packaging
Quality
PLACE
Target
Market
How the products are made
available to consumers – making
the product available in the right
place, at the right time, in the right
quantities
PROMOTION
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
14 March 2016
Communication of the product
benefits that persuades consumers
to purchase, e.g.
 Advertising
 Sales Promotions
 Publicity
 Personal Selling
5
Legal & Ethical Considerations
• Legal and ethical aspects affect every part of a
brand and its products
• Deceptive and Misleading Conduct:
− ACCC: consumer watchdog
− Product Claims:
− All packaging and advertising claims must be supported to the
satisfaction of independent bodies such as 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
unable to enforce a certain price point in any retailer. All
prices are advised as RSP: recommended selling price
Legal & Ethical Considerations
• 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
− Therapeutic Goods; GMP manufacture
• 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
Case Study
MARKETING PLAN
Situation Analysis: Aerogard
• Product life cycle
− Aerogard is a mature brand within a developed category
− Aerogard’s role in the category is to lead growth through
product development and innovation
• Market Trends
− The repellents category is valued at $15m and experiences growth/declines according to how
strong each summer season is.
− 80% of category volume is sold during summer (Oct-Feb) when insects are most prevalent
− QLD market is less seasonal due to its tropical weather (QLD accounts for 35% of sales)
− There are four main product formats within the Repellents category:
− Aerosols (50%)
− Roll-ons (20%)
− Pumps (27%)
− Lotions (3%)
− Aerogard is market leader with 63% share and has 2 key competitors: ‘Rid’ & ‘Off’
Situation Analysis: Aerogard (contd)
• Consumer Needs
Primary Needs
− Efficacy – it has to work!
Secondary Needs
− Long lasting
− Secondary Protection: Moisturising, AntiItch, Less Chemicals/More Natural
• 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.
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
Brand Positioning - Aerogard
• Positioning
− Aerogard is trusted by Australians to provide you and your family with the maximum
protection from annoying, biting insects.
− Aerogard offers innovative products to cater for all family needs in convenient to use
formats.
− Aerogard: The insect repellent that gives you the freedom to enjoy the Australian
summer.
SWOT ANALYSIS
• STRENGTHS
• WEAKNESSES
• Market leader
• Declining market share due to
increased competitive activity
• Strong heritage
• High awareness
• Experienced sales force
• Brand image becoming outdated
• High cost of active ingredients
• Strong distribution in supermarkets
• R&D expertise
OPPORTUNITY
THREATS
• Alternative suppliers with cheaper
ingredients
• Competitors gaining market share
• New products with secondary benefits
• Alternative channels such as
pharmacy and specialty stores
• New competitors enter the market
Aerogard Marketing Objectives & Strategies:
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 Aerogard’s unique
benefits v competition
–Reduce reliance on deep price cutting to drive sales
–Implement product cost saving projects
–Modernise brand image
Marketing Mix - 4P’s
• Product
− Launch new Aerogard products
− Launch new pack graphics that project a more modern brand image
− Initiate cost saving project to improve profitability
Aeroguard 07/08 Season
• The Situation:
− Consumers dislike of PIR fragrance represents the highest opportunity for category
involvement for lapsed/non-users.
− Almost half of Aerogard users do not like the fragrance & a portion of Aerogard users
have left the brand based on the smell
Aerogard Odourless
Consumer Insight
Australians love the outdoors during summertime but dislike the use of
personal insect repellent as the overpowering smell can be irritating .
Consumers are looking for a trusted and effective solution that they
can use with confidence for the entire family
“won’t get in the way of perfume at a BBQ”
“feel more comfortable to spray on face”
“good for social situations”
“can use it more often”*
Product Benefits:
Effective protection without the repellent odour
The new-generation range will also deliver the following secondary
benefits;
• Low Irritant
• Suitable for use on kids (12months & over)
• Non-greasy
Aerogard Packaging Evolution
• Modernise & Contemporary Design
• Re-enforce Family Protection
• Simplified communication hierarchy
• Impactful sub-range communication
Marketing Mix - 4P’s
• Price
− Aerogard’s 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.
− All variants will be price promoted during peak season in order to minimise
consumers switching to cheaper competitive offers
Marketing Mix - 4P’s
• Promotion / Advertising
− Use TV as the main media vehicle to maximise reach during the peak of the season
− Sample new Odourless 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
i360 Campaign
IN-STORE
TV
RADIO
EVENT SPONSORSHIP
(Moonlight Cinema)
SAMPLING
Marketing Mix - 4P’s
• 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
Questions