Reckitt Benckiser Clearasil Makeup

Marketing Strategy and Planning (MKT 337)

Instructor Anthony DeLeonFall 2013

Piyanuch Kangwankijwanich (Tu)

Strategic Issue Assessment (SIA)

Strategic Alternative Reviews (SAR)

Marketing Decisions

5C ANALYSIS:

COMPANY, COMPETITORS,CUSTOMERS,

COLLABORATORS,& CONTEXT

Source: Reckitt Benckiser Group plc. (2012). Annual report and financial statements 2012.

Good Sales Performance

COMPANY: RECKITT BENCKISER

Rapid Action Good Smell

COMPANY: CLEARASIL PRODUCTS

Sources: Clearasil, Clean & Clear, and Neutrogena from Walgreens webpage. Proactiv product bundle from Proactiv webpage.

Affordable Price

COMPANY: CLEARASIL PRICING

Drugstores

Hypermarkets

Online Marketplace

“No Online Order”

COMPANY: CLEARASIL DISTRIBUTION CHANNELS

Successful Campaign

COMPANY: CLEARASIL PROMOTIONS (LATEST)

http://www.lizmarieblog.com/2013/08/clearasil-superfruits-face-wash-review/

Customers feel fun to

Join the contest Share content Get free samples

COMPANY: CLEARASIL PROMOTIONS (LATEST)

Target customers areboth genders aged 16 – 35

Target customers are

Female aged 14 – 40

Target customers are

Female aged 12 – 24

PRIMARY COMPETITORS

Credible& Reliable

Attractive

Optional

1

2

3

PRIMARY COMPETITOR: NEUTROGENA

Fast Action

Mass Retail Stores

Photo Contest

+ got award from Allure

+ P.O.P. promotions

+ be partner with CVS and Glamour magazine

PRIMARY COMPETITORS: CLEAN & CLEAR

Differentiate Strategies

• Direct Marketing

• Money Back Guaranteed

• Celebrities Endorsement

• Real Testimonials

• Product Bundle

MANY

PRIMARY COMPETITORS: PROACTIV

Acupuncture

Medical Laser

Nature

Prescription Medicine

SECONDARY COMPETITORS: SUBSTITUTE PRODUCTS

SATISFIED CUSTOMERS

Good participation on

Majority of Clearasil audiences are teenagers aged 18-24 who live in L.A.

• Bad advertising campaigns• Too young for me

UNSATISFIED CUSTOMERS

Bad comments

Harsh chemicals

Only one loyal customer segmentation, “male aged 13 – 17”

Source: Clearasil case study. Reckitt Benckiser (2008)

MAJOR CUSTOMERS

Makeup that will not block pores

Eco-friendly cosmetic products

Acne preventions for adults

WHAT CONSUMERS WANT?

Search this

On the Clearasil’s website

Inconsistent Price

COLABORATORS

Quality means products that passed the government regulations

CONTEXT: ECONOMY & REGULATIONS

Economic is a good !?!Because consumers switch to quality products with reasonable prices

SWOT ANALYSIS

SWOT

Internal Assessment

External Assessment

Strengths• Effective, yet affordable• Good brand recognition• Strong finance support• Strong R&D

Weaknesses• Harsh chemicals• Immature positiong• Similar to Clean & Clear• No online order• No strategic partnership

Opportunities• Acne in adults• Green trends• Reasonable prices needed• Non-clogged up makeup

Threats• Abundant of

substitute products

• Strict regulations

ALTERNATIVE SOLUTIONS

• Attract new customers (older generations)

• Maintain their existing customers (not to change brand when they grow older)

• Execute slice of life advertising• Endorse celebrities

Why?

How?

OPTION1: Acquire mature positioning

• Encourage customers to repeat purchase

• Launch smaller packaging & Travel kits• Reduce price & Push strategy• Sell products online• Create mobile apps

Why?

How?

OPTION2: Focus on consumer’s convenience

• Expand the target markets

• No brands stand for “makeup for acne people”

• Cooperate with L’Oreal • Launch sub-brand with full foundation

makeups• Acquire “makeup for acne people”

position

Why?

How?

OPTION3: Launch new makeup product lines

EVALUATION PROCESSES

Criteria Option 1 Option 2 Option 3

Finance Expensive Neutral Expensive

Time Long time Short time Long time

Competition

Intense Very intense Lower

Market Size

Increasing Shrinking Increasing

Market Growth

Growing Stable Growing

STRATEGY EVALUATION DIMENSION

Level of effort to achieve each goal

1 = ‘a little’ 2 = ‘moderate’3 = ‘much’

SAR EVALUATION CRITERIA

OPTION 3: Launch new makeup product lines

How to make this plan better

• Transfer knowledge to shorten R&D time and Cost

• Cooperate to shorten the product introduction stage

• Establish superior value, ‘2 in 1’ product lines both ‘cure’ and

‘cover’ acne

PREFERRED ALTERNATIVE

For females aged 25-35 who have acne problems and need non comedogenic makeup, Clearasil and L’Oreal, the U.S. leader companies, provide an effective cosmetic that would not block your pores and generate skin irritation. Unlike other competitors, our products are aimed to heal your skin problems and boost up your confidence.

POSITIONING STATEMENT

TARGET CUSTOMERS

MARKETING OBJECTIVES

• Reach the break-even point at the end of year 3

• Expand business to NYC, Chicago, Texas

• Grow 30% in the 1st year and 10% in two consecutive years

• Achieve 30% of total sales from online, events & roadshows70% of total sales from drugstores & hypermarkets

• Attain more strategic partners

• Acquire 2nd place in the U.S. acne treatment market in 5 yrs

• Gain attention and be buzzed among consumers and media

• Be recognized for “Makeup for Acne Consumers”

MARKETING MIX:

PRODUCT,PRICE, PLACE, PROMOTON, PEOPLE, PROCESS, & PHISICAL

EVIDENCE

PRODUCT: BRANDING

Brand NameCa (Clearasil) + Ra (L’Oreal)= “Beloved”

Brand Identity• Simply font & Clean design= an ease-of-use image• Leaf = Natural cosmetic

PRODUCT: BRAND PERSONALITIES

PRODUCT: THREE ELEMENTS

Core benefits

Actual performances

Augmented values

cover & cure acne

natural ingredients

medical substances

good aroma

compact

recyclable

30-days money back guarantee

24/7Hotlines

laboratory research

easy touse

PRODUCTS

Primer

Green tea reduces redness

Lemonreduces

scars

Foundation

Cucumbermoistures

skin+

SPF30

Skin tone

Concealer

Aloe Veraminimizespimples

Foundation

Powder

Indian claykills

bacteria

LoosePowder

Roseabsorbs

oil

Main sources: Benzoyl peroxide, Sulfur, Resorcinol-A, Triclosan & Salicylic acid

VALUE-BASE PRICING

CUSTOMER VALUE PRICE COST PRODUC

TCompetitiv

e price

Just noticeable

price

Avg $16 300% mark-up

Actual product

cost<$4

DIRECT DISTRIBUTION: WEBSITE

WHOLESALES DISTRIBUTIONS

Product testers Eye-level shelf

P.O.P. promotions

PROMOTIONS: ONLINE VS ON-GROUND

A.I.D.A. MODEL VS PURCHASING DECISION PROCESSES

AWARENESS INTEREST DESIRE ACTION RETENTIO

NNEED SEARCH EVALUATIO

NPURCHASE REPURCHAS

E

STAGE 1: Create Awareness by touchpoints bombard

STAGE 2: Increase interests by using bloggers

Send gift set1

2

3

Sharing on social media

Autograph event

STAGE 3: PURSUADE BY PROMOTING SALES & SERVICES

Encourage consumers to try

Sign up & get free samples Free shipping with minimum purchase

Sales forces in Beauty Assistant

character

STEP 4: Call-to-Action by makeup contest

Record makeup videoUsing Cara

Share on Social media

Most viewed isThe winner Advertorial & CSR

1 2 34

STEP 5: Maintain customers by keep impressing them

Sponsor customers’ special occasions

Get rid of acne mobile appOpen-house day for fans Sales booth

PEOPLE

PROCESS

PHYSICAL EVIDENCE

Thank you customers who share their stories on Cara’s media

KEY PERFORMANCE INDICATORS

1.Number of prospect customers: SEO, fans on social media, number of sharing content,

and number of participants in events

2. Status of existing customers:Transaction online and receipts

3. Return On Marketing Investment (ROMI):Actual sales VS Sale forecast

Brand awareness and recognition

FINANCIAL PROJECTIONS

STARTUP EXPENSE

SALES FORECAST

COSTS OF GOOD SOLD

CONTINGENCY PLAN

What if the plan does not work?

After year 3, Cara should do cost-benefit research. Stop the plan if it does not worth for investing

Or, if still have chance to rise up the sales,Think more about Alternative solution 1 and 2.

REFERRENCES

• Acne: Product lines, Cosmetic for acne prone skin, Men’s skin care, & Why Neutrogena?. Neutrogena webpage. Retrieved from http://www.neutrogena.com/

• Annual report & proxy statements: 2012 Annual report. Johnson & Johnson webpage. Retrieved from http://www.investor.jnj.com/annual-reports.cfm

• Bankson, C. (2010, December 15). Acne foundation routine flawless skin (full coverage tutorial) cystic & scaring diamondandheels14. Retrieved from http://www.youtube.com/watch?v=ex33wtqnNz8&feature=c4-overview-vl&list=PL79EC6E2F612D7634.

• Broadcast yourselfie: How teens use social media and why it matters to you. (2013, August 13). Brainsolis. Retrived from http://www.briansolis.com/2013/08/broadcast-yourselfie-how-teens-use- social-media-and-why-it-matters-to-you/

• Clean & Clear absorbing sheets. Clean & Clear webpage. Retrieved from http://www.cleanandclear.com/products/blotting-papers/clean-clear-oil-absorbing-sheets

• Clean & Clear, Clearasil, and Neutrogena prices. Walgreens webpage. Retrieved from http://www.walgreens.com

• Clearasil. (n.d.). Retrieved from http://www.mbaskool.com/brandguide/fmcg/2376-clearasil.html

• Clearasil case study. (2008). Reckitt Benckiser. Retrieved from http://www.rb.com/careers/sample-case-studies

REFERRENCES

• Clearasil official website. Retrieved from www.clearasil.us• Clearasil US Facebook. Retrieved from https://www.facebook.com/clearasilUS• Clearasil Youtube. Retrieved from http://www.youtube.com/user/clearasil• Combs, C. (2013, October 7). Clearasil US Facebook: Recent posts by others. Retrieved from

https://www.facebook.com/clearasilUS• David, R. (2011). Rethink the marketing funnel. The network is your customer. Yale University

Press. Retrieved from www.davidrogers.biz• Experian Information Solutions, Inc. (2013, August ). Teen and tween beauty and personal

care consumer-US: Reasons for using beauty and personal care products & Personal care product usage-Girls. Mintel.

• Euromonitor International. (2013, April). Beauty and personal care: Social media in beauty and personal care. Global Market Information Database.

• Euromonitor International. (2006, September 28). Biomaterials shape up acne treatments in the US. Global Market Information Database.

• Euromonitor International. (2011. March). Value perceptions in skin care. Global Market Information Database.

• Euromonitor International: Strategy briefing. (2011, February). Make way for generation Z: Marketing to today’s tweens and teens. Global Market Information Database.

• Global Data. (2012, September 5). Reckitt Benckiser Group Plc: Financial and strategic analysis review.

REFERRENCES• Help your teen get a handle on their spending. Paypal student account. Paypal website.

Retrieved from https://www.paypal.co/us/webapps/mpp/student-accounts• Kotowski, K., Lemley, A. T., Nicholson, A., Plocek, L., & Reid, K. (n.d.). Stridex advertising

strategy. Retrieved from http://www.docstoc.com/docs/31095088/Stridex-Advertising-Strategy

• Makeup. Retrieved from http://www.clinique.com/products/1599/Makeup/Foundations/index.tmpl

• Market Line. (2013, March 26). Company profile: Reckitt Benckiser group plc. Business Source Complete.

• Mintel. (2013, May).Facial skincare-US: Interest in facial skincare-Forms, Retail channels & Social Media.

• Mintel. (2013, August). Teen and tween beauty and personal care consumer-US: Facial makeup usage-Girls, Leading brands, Marketing strategies, & Purchase Decision Maker-Girls.

• Milemny, N. (2013, February 4). Foundation routine for severe acne (part one). Retrieved from http://www.youtube.com/watch?v=b1OllUVt36k

• Order now: Select a system that works for you. Proactiv webpage. Retrieved from https://www.proactiv.com/on/demandware.store/Sites-Proactiv-Site/default/COCart-AddProduct?pid=B7H6D3

• Panteva, N. (2013, January). Cosmeceutical skincare production in the US. IBISWorld Industry Report OD4208.

• Phillips, J. (2013, August). Cosmetic & beauty products manufacturing in the US. IBISWorld Industry Report 32562.

REFERRENCES

• Poggi, J. (2013, February 26). Nickelodeon targets 'post-millennials' in upfront: Children's Net Moves Beyond TV, Rolls Out App Along With New Shows. Retrieved from http://adage.com/article/special-report-tv-upfront/nickelodeon-targets-post-millennials-upfront/240045/

• Product line, & Win the day. (2013). Clearasil US webpage. Retrieved from http://www.clearasil.us/

• Rapini, Ronald P.; Bolognia, Jean L.; Jorizzo, Joseph L. (2007). Dermatology: 2-Volume Set. St. Louis: Mosby. p. 1371. ISBN 1-4160-2999-0.

• Reckitt Benckiser Group plc. (2012). Annual report and financial statements 2012. Retrieved from http://www.rb.com/investors-media/investor-information

• Romanowski, S. (2013, May). Infographic overview: Facial skincare. Mintel database.• Sharma, T. (n.d.). Clearasil. Retrieved from http://skincare.lovetoknow.com/Clearasil• Son, A. (2012, December). Acne treatment manufacturing OTC in the US. IBISWorld industry

report OD4125. • The foundation of female millennials’ makeup habits. Lab42 website. Retrieved from

http://blog.lab42.com/wp-content/uploads/2013/05/Millennials-Makeup-Infographic-FINAL1.png

REFERRENCES

Todoros, O. (2012, April 26). My photo albums is a free photography app that’s sure to surprise you! Phpt cruncher website. Retrieved from http://photocruncher.com/myphoto-albums-is-a-free-photography-app- thats-sure-to-surprise-you/Trends & data. Online retail sales growth, U.S. e-commerce sales: 2011-2016, & U.S. mobile commerce sales via smartphone, 2012-2017. Retrieved from http://www.internetretailer.com/trends/sales/U.S. Food and Drug Administration. (2013, August 2). FDA authority over cosmetics. Retrieved from http://www.fda.gov/Cosmetics/GuidanceComplianceRegulatoryInformation/ucm074162.htm#What_does_the_lawYoung, L. (n.d.). The women of social media report – digital women influencer study. Women of Google+. Retrieved from http://www.womenofgplus.com/2013/the-women-of-social-media-report