Post on 26-Oct-2014
Aficionado•Arianne B. Florete•Jussel G. Estrañero
Category Attractiveness Template
FACTORS
Analysis
(Use the following questions/statements as guide in conducting your analysis)
Assessment
Market Attractiveness
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Aggregate Market
Category size According to the Fragrance Foundation, the United States accounts for the largest market share of worldwide fragrance sales.The fragrance industry is a global enterprise with millions of international consumers.
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Category growth The worldwide flavors and fragrance ingredient market is worth approximately $6.3 billion in 2006. Poised for an average annual growth rate (AAGR) of 4.5% per year, this value should grow to $7.8 billion in 2011.
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Product Life Cycle Growth stage - Because the cost of perfumes nowadays increases and also the increase of competitors.
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Sales Cyclicity
Seasonality They produces their product in seasons like creating promos . +
Profits Aficionado has its increase in their profit because of many Filipino what to franchise business that already made a name in the industry,
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CATEGORY
Threat of new entrants/exits Oftentimes, people easily get attracted to new brand/s like such
product.
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Economies of scale The teenagers has a large number of consumer when it comes to fragrance.
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Product differentiation There are many perfumes in the stores and has its different features, design, scent, and cost.
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Capital requirements Total Capital Investment: for as low as P228K
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Switching costs Long time users of the product don’t get attracted with other brand
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Distribution Malls and stalls. +
Bargaining power of buyers The buyers can has the power to buy the product that depends on their
profit and preferences.
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Bargaining power of suppliers The price of the product depends on the supplier because there are no
substitutes for the product supplied
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Pressure from substitutes There are many brands which customers may purchase
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Category capacity There a different scents out in the market.
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Current category rivalry Lack of product differentiationMany competitors
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ENVIRONMENTAL
Technological The company’s dynamic Research and Development team launched its new product extension, the Aficionado Bath and Body Spray mostly commonly known as Aficionado cologne.
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Economic The economic situation affects Aficionado by less consumption.
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Political/regulatory Protection of the public would be implemented by passage of Senator Frank Lautenberg's Safe Chemicals Act of 2010, Dr. Epstein advises. This bill requires manufacturers to provide information on "chemicals of concern" in consumer products. People must be protected from exposure to fragrance ingredients that may cause cancer or fetal, hormonal or reproductive toxicity, the Cancer Prevention Coalition warned today. But federal agencies are not regulating these ingredients, leaving the public at risk due to the "recklessly irresponsible" behavior of the fragrance industry, says CPC Chairman Samuel S. Epstein, M.D.
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Social Consumer wanted scents that is lost lasting but affordable.
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Competitor Analysis Company or Brand Mission/Vision
BENCH JOHNSON & JOHNSON ZEN ZEST AFICIONADO
VISIONTo be a recognized world brand among the best world brands.
MISSIONWhen we create, we inspire,When we make, we innovate,when we lead, we serve.
Cultures and Values:Johnson & Johnson is guided by a CREDO written by the late General Robert Wood Johnson more than 50 years ago highlighting the company’s responsibilities and commitment to its Customers, Employees, Community and Shareowners. SIGNATURE OF QUALITY Johnson & Johnson is committed to THE SIGNATURE OF QUALITY, a continuous quality improvement program to achieve the goal of being the best and most competitive health care company in the world. SOCIAL RESPONSIBILITY Johnson & Johnson demonstrates its concern for the community in many ways. Its focus is on the health care needs of underprivileged infants and mothers, education of the young, national disasters and emergencies. Johnson & Johnson also works closely with leading environmental organizations committed to the tenets of sustainable development.
MISSION AND VISIONTo provide high-quality products at affordable prices that can thrive in the global market.To provide jobs and uplift the country’s economy and morale.To put the Philippines on the map by provide products of stellar quality and packaging.
Mission -To develop quality products for global distribution at the right cost at the right time.-To satisfy our stakeholder(stockholders, franchisees, and investors) with good profit.-To provide our employees with humane working condition and security for their personal and professional growth.-To be socially responsible to our community especially to those who belong to marginalized segment of our country.VISION-we are the leading manufacturer and distributor of perfume and health and beauty products.
Company or Brand founder
Competitor A Competitor B Competitor C Our Product
Bench Johnson & Johnson Zen zest Aficionado
Ben Chan Robert Wood Johnson ,James Wood Johnson, & Edward Mead Johnson
MICHELLE DULA ASENCE
Joel Cruz
Management team of Company or Brand
Bench Johnson & Johnson Zen zest Aficionado
As Chairman and Executive Creative Director, Ben Chan, with Virgilio (brother in-law) and Nenita Lim(sister)
Management TeamThe Executive Committee of Johnson & Johnson is the principal management group responsible for the operations and allocation of the resources of the Company. This Committee oversees and coordinates the activities of the Consumer, Pharmaceuticals and Medical Devices and Diagnostics business segments. Each subsidiary within the business segments is, with some exceptions, managed by citizens of the country where it is located.
William C. Weldon
Dominic J. Caruso
Russell C. Deyo
Colleen Goggins
Alex Gorsky
Sherilyn S. McCoy
MICHELLE DULA ASENCE
Joel decided to put up perfume business where he seeked the assistance of his friend who is now the Vice President Internal of the company
Product features
Bench Johnson & Johnson
Zen zest Aficionado
Packaging Creative designs
Cute designs
Its design was connected to its scent/flavor.
simple
Scent Fruity scent smell fresh and clean scent
Cocktail scent
Clean and attractive scent
Price 50 42 90
Objectives (Growth, Hold or Harvest)
Bench Johnson & Johnson
Zen zest Aficionado
Growth –sales, hold –advertising promotions
growth –sales; hold –status, advertising promotions
Growth –sales, hold -status
Growth -Sales , hold –status, harvest- profit
Target market
Bench Johnson & Johnson
Zen Zest Aficionado
Kids, Teenagers , young adults, Tweens
Kids, Teenagers, tweens
Teenagers, young adults, tweens
Teenagers, young adults, tweens
Positioning
country's biggest name in fashion retail
world's most broadly based producer of healthcare products
high quality body care and ambience product
leading manufacturer and distributor of perfume and health &beauty products
Supporting Marketing Mix (Product, Price, Placement, and Promotion)
Product Bench Daily Scent
Johnson & Johnson cologne
Zen zest perfumes
Aficionado perfumes
Price 50 42 90 160
Placement Malls, supermarkets
Malls, supermarkets
Malls, stall Malls, stall
Promotion Print ads, in-sore ads
Tv ads Print ads Print ads
Differential Competitor Analysis (scaling… 1-5 ---five is the highest!)Capabilities A B C AficionadoAbility to Conceive and Design
5 3 2 4
Ability to Produce 4 5 3 2Ability to Market 4 5 2 3Ability to Finance 4 5 3 2Ability to Manage 4 5 2 3
Prediction of Future Strategies
Strategies A B C Aficionado
Current Strategies
Print ads, affordable price
TV ads, cheaper price compared with other brands
Creative, top-draw packaging
Unique packaging, affordable price
Expected Future Strategies
Billboards Eye-catching packaging
TV ads Radio ads and TV ads
Customer AnalysisWho are the customers?What do they buy and how do they use it?Where do they buy?When do they buy?How do they choose?Why they prefer a product?How they respond to marketing
programs?
Planning AssumptionsCategory and product sales forecast
7 391 014 x 0.15 = 1 108 5027 391 014
Net Sales 8 499 516Cost of Sales (57%) 4 844 724Gross Profit 3 654 792Selling & Administrative Expense (37%) 3 144 821Net Income before tax 509 971x32% 163 191
Net Income after tax 346 780
ObjectivesObjectives (Growth, Hold or Harvest)
Benach Johnson & Johnson
Zen Zest Aficionado
Growth –sales, hold –advertising promotions
growth –sales; hold –status, advertising promotions
Growth –sales, hold -status
Growth -Sales , hold –status, harvest- profit
Marketing Objectives1. Volume and profit2. Time frame3. Secondary objectives4. Program
Product/ Brand strategyA. Target CustomerB. Competitor TargetC. Product featuresD. Core strategy
Supporting Marketing programsA. Integrated Marketing communication planTVCPrint AdBillboardsB. PricePhp. 160 -regular bottlePhp. 140- refillC. ChannelFranchising
Financial Document A. Budget
2005 3,718,740
2006 4,492,627
2007 5,128,609
2008 6,392,280
2009 7,391,014
YEAR GROSS PROFIT
B. Pro Forma statementImproving product designPlan to have its boutique of perfumesTo introduce more about the productTo help more Filipino in handling a business
through franchising our product.To train our employee in handling a
customer
Monitors and ControlsA. Marketing Metrics Based on the survey we made about our product, most of the
respondent they don’t want the packaging of Aficionado most of them get more attracted to the packaging of Bench which is its competitor. And when it comes to its price most of the respondents choose Johnson & Johnson because it is more affordable than other cologne sell by other competitor. But when it comes to the location of the store says that it is accessible for the customer.
B. Secondary DataInternet such as blogs who used already the productWord of mouthC. Primary Data Survey
Contingency PlanLess consumption of perfumesWe would lower the price and improve/ develop new
features of product to attract more and new customers. Higher demand of perfumesMore production of perfume at a reasonable price.During occasion like ChristmasThere would be product that would suitable for this
kind of occasion.Receiving bad feedback about the staff coming from the
customerEmployee/ employees would be given a warning, and if
it happens again the employee would be fired.