MARKETING
Presented by:
DAVID ROMERO
May 2008
Agenda
• The role of Marketing
• Developing a Marketing plan
• Marketing mix - the 4P’s
• Ethical & legal considerations
• Case Study – Aerogard
• Other Reckitt Benckiser TV adverts
• 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?
 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)
HOW SHOULD
WE GET THERE?
 Develop Financial Forecast
 Build volume forecast
 Determine marketing investment required to achieve
objectives
Marketing Mix – 4 P’s
The major controllable variables that we have to get the desired
response from our target market :
PRODUCT
PLACE
Anything that can be offered
to a consumer for use or
consumption, that might
satisfy a want or need
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 Decisions include :
Brand/ subbrand name
Design & Features
Packaging
Quality
Target
Market
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
PROMOTION
Communication of the product
benefits that persuades consumers
to purchase, e.g.
 Advertising
 Sales Promotions
 Publicity
 Personal Selling
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 unable
to enforce a certain price point in any retailer. All prices are
advised as RSP: recommended selling price
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
• 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
AEROGARD
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 experienced strong
decline last season (-30%) due to poor summer season.
– 80% of category volume is sold during summer (Oct-Feb) when
insects are most prevalent, although the 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%) and lotions (3%),
however aerosols remain the most popular format
– Aerogard is market leader with 70% 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
– Anti-itch
– Less Chemicals/More Natural
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.
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
Pump Sprays
Lotion
Roll On
Moisturising
Sunscreen
Pleasant Fragrance
Less Chemicals
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
SWOT ANALYSIS
STRENGTHS
• Market leader
• Strong heritage
• High awareness
• Experienced sales force
• Strong distribution in
supermarkets
• R&D expertise
WEAKNESSES
• Declining market share
due to increased
competitive activity
• Brand image becoming
outdated
• High cost of active
ingredients
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
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 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, eg with added
30+ sunscreen
– Launch new pack graphics that project a more
modern brand image
– Initiate cost saving project to improve profitability
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. 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
Marketing Mix - 4P’s
• 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
Bus Shelters – 0607
• Creative platform developed to strengthen consumer connection with the icon
brand and to communicate the relevant KPI’s:
• Efficacious
• Modern & up-to-date
• Suitable for the entire family – including children
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
Aeroguard 07/08 Season
• Consumer insight
– What could turn you off using Aeroguard?
• THE SMELL!
• New NPD
– Aeroguard Odourless
• TVC Support
Other Reckitt Benckiser TV Adverts
• Strepsils
• Nurofen Plus
• Harpic
• Veet
• Clearasil
Questions