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.