DBR - Vaseline Brand PDF

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Summary

Vaseline Brand ...

Description

Driving Brands for Results (DBR)

Assignment Topic

A Strategic Brand Management Plan for a FMCG Company

Student Name

M M Wimalasena

Reg. No.

0000027557

June 2018 Examination

Postgraduate Diploma in Marketing

Sri Lanka Institute of Marketing

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Content

1. Task 01...................................................................................................5 1.1 Product Overview......................................................................................5 1.2 Company Overview...................................................................................5 1.3 Macro Factors Affecting Vaseline...........................................................................6 1.3.1 Political.....................................................................................................6 1.3.2 Economic..................................................................................................6 1.3.3 Social.........................................................................................................6 1.3.4 Technological............................................................................................7 1.3.5 Environment..............................................................................................7 1.3.6 Legal..........................................................................................................7 1.4 Micro Factors Affecter Vaseline.............................................................................7 1.5 Competitor analysis.................................................................................................8 Competitor analysis - Nature Secret........................................................................8 Competitor analysis - 4rever....................................................................................9 SWOT analysis........................................................................................................10 2. Task 02.....................................................................................................................11 2.1 Skin care category..................................................................................................11 2.2 Category growth.....................................................................................................11 2.3 Vaseline category growth.......................................................................................12 2.4 Vaseline brand volume...........................................................................................12 2.5 Market share...........................................................................................................13 2.6 Vaseline positioning...............................................................................................13 2.7 Category dynamics.................................................................................................14 2.8 Vaseline segments..................................................................................................15 2.9 New segments........................................................................................................17 2.10 Marketing mix......................................................................................................18 2

3. Task 03................................................................................................20 3.1 Digital Marketing Plan.....................................................................................20 3.1.1. Communication Objectives....................................................................20 3.1.2 Channel Split...........................................................................................20 3.1.3 Selected Channels...................................................................................21 3.1.3 Annual Digital Marketing Plan...............................................................21

3.2. Activation Plan................................................................................................22 3.2.1 Objectives................................................................................................22 3.2.2 Brand Engagement Activations...............................................................22 3.2.3 Trials........................................................................................................22 3.2.4 Annual BTL Activation Budget..............................................................22

3.3 Suggested Brand Extension Of Vaseline................................................................23 3.3.1 Pros of Vaseline Fair Moisturizer.................................................................23 3.3.2 Cons of Vaseline Fair Moisturizer................................................................23 4. Conclusion................................................................................................................24 5. References...............................................................................................................25 6 bibliography ………………………………………………………………………..26

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Executive Summary Vaseline one of the most recognize brand in the world. Unilever Sri Lanka is the Vaseline distributor in Sri Lanka. Vaseline is product, which produce by the Hindustan unilever, and export to Sri Lanka. Vaseline has 140 years of history. Vaseline brand can be influence by the macro environment factors and microenvironment factors as it is operate with in the business environment. In Sri Lanka, the major competitors of Vaseline are Nature Secret and 4rever. The moisturizing body lotion in Sri Lanka is category that has growth in Sri Lankan market. Vaseline also category that has shown category growth through years. Vaseline sales volumes increase year by year. Vaseline has 44% share market in Sri Lankan moisturizing body lotion market. Vaseline globally positioned as "Healing power of Vaseline". However, the particular body lotion position the brand as "Make Your Body Like Your Face". The category dynamics of Vaseline are user concern and needs and conversion to substitute. The segments Vaseline mainly cater ar women age between 25 to 30 and 30 to 35. The new segment, which identify is youth the age between 15 to 20 and 20 to 25. Further, I have created marketing mix elements for the new segments. To reach the new segment I used a digital media plan, along with objective, media and budget. Moreover, I wanted to create activation plan for the new segment including objectives and budget. finally I introduced a brand extension for Vaseline.

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Task 01 To:

Brand Director Vaseline Sri Lanka

From: Brand Manager Vaseline Sri Lanka Subject: A Strategic Brand Management Plan for A FMCG Personal Care Product. Date:

20th May 2018

1.1 Product Overview Vaseline mainly focuses on the tag line that "Make Your Body Look Fair Like Your Face". Vaseline healthy white location keeps away skin from daily exposure and pullulated air. Therefore, Vaseline jelly make dry and damage skin lightening, healthier fair looking skin. Further, it concern about the daily skin care needs, fast absorbing and non-greasy. Vaseline restores for visible fairer skin in 2 weeks. It contains vitamin B3 that helps skin look fairer. Triple sunscreens help to protect fairness from further darkening and sun damage. Vaseline available in 40ml, 100ml, 300ml and 400ml in quantities. 1.2 Company Overview Vaseline founded in the 18th century by Robert Augustus Chesebrough. Vaseline safely helps for the skin heal for over 140 years. Unilever is a multinational company, which owns the Vaseline. Moreover, Vaseline makes people feel good, look good and get more out of life.

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1.3 Macro Factors Affecting Vaseline 1.3.1 Political The current political instability of the Sri Lanka government cause for the policy paralysis of the country. The lapses of proper foreign trade policy with India is also cause for the imported Vaseline products available in Sri Lanka. According to the Sri Lankan political stability index shows that from 1996 to 2016. It was 1.02 points with a minimum of 1.9 comparators to compare trends over time. As Vaseline import from India the tax incensement include 40.8% and is directly affected for the product pricing. 1.3.2 Economic Vaseline is made of Vaseline jelly. The main ingredient Vaseline jelly is made from crude oil. The increasing price of crude oil is caused for the increasing price of the Vaseline. Increase of the inflation rate of Sri Lanka, accounts for 5.8% is caused for Vaseline product pricing in Sri Lanka. The foreign currency exchange rate of Us Dollar is equal to Rs. 157.47 and one Indian rupee is equal to Rs. 2.34. The countries' salary increase of government and private sector is affected for the increment of the purchasing power of the customer. 1.3.3 Social Sri Lanka is a country, which highly concern about the society's values, perceptions, preferences and behaviour. When telecasting an advertisement it should be matched with Sri Lankans' mindset. Understand the customer needs and wants are the key. As the family units changing into nuclear families. Educated consumers, increasing day by day is a positive to increase the awareness of Vaseline. Population growth is caused for the generate sales and profits. Lifestyle patterns of women are highly changing is caused for the diversify the product range. 1.3.4 Technological Unilever uses the latest technology for extract petroleum jelly, paraffin oil and paraffin wax from the crude oil. New research and development, conduct by Hindustan Unilever (HUL) is cause for inventions of Vaseline products according to the customer preference.

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1.3.5 Environment As the cured oil is the main ingredient of Vaseline, it extracts from the earth through the process of drilling. That, leads to the oil spills in the ocean and the spread of toxic, including lead and radium, into the atmosphere. The plastic bottle of Vaseline makes a high percentage of Co2 in waste. Above all environmental issues are caused through processing and consuming of Vaseline. However, Vaseline wants to create a sustainable practice through "Healing power of Vaseline". Most of the Sri Lankans' has dry skin Vaseline is a good solution to maintain the skin moisture. 1.3.6 Legal National Medicines Regulatory Authority Act No 5 of 2015 is a law, which affect for the Vaseline. The main objective of the regulation is to make cosmetics products safe and not injurious to health. Prohibit the use of certain toxic substances and to keep the properlabelled products with batch making. Furthermore, Vaseline need to concentrate on Consumer Affairs Authority Act No 09 of 2003.

1.4 Micro Factors Affecter Vaseline Competitive Rivalry – High Competitive Rivalry high for Vaseline. The brands like Nature secret, 4ever, ponds, Nivea, L’Oreal, chandanalepa, Janet, Himalaya, Fair and Lovely and Johnson & Johnson compete with Vaseline for the market share. Further, some brands captured market shares, spend huge amount of money on research and development, innovation and introduce new and modified products to the market. All above brands cater the segments in cosmetics industry, furthermore the Sri Lankans small size cosmetic manufactures and national level players also gain the market share. As a result of a large number of players in the market and diversify product range, competitive rivalry of Vaseline is high.

Threat of New Entrance – Medium The industry has a medium level of threat of new entrance as an industry need huge capital for investment for the establishment, manufacturing cost of developing the product, cost of advertising and promotions, to develop market presence and to increase demand and supply of the product cost more than think. Cosmetic is more personal and 7

sensitive to the customer so, customer test the brand first and tried themselves. As some products cater the segment, according to the specific need and wants of the user or an example Nature secret cucumber face wash cater for the oily skin.

Bargaining Power Of The Supplier - High Vaseline is imported from Hindustan Unilever. As an ultimate power of production is caused for the grab the market quickly and increase the profits. Increase the price of a Vaseline product in India directly cause for the Unilever Sri Lanka to sell the product in Sri Lanka. On time delivery is also cause for the Unilever Sri Lanka to fill the market gaps in Sri Lanka. Bargaining Power of Buyers – High In cosmetic industry, the bargaining power of the buyers is high. This is due to the increasing competition and availability of the similar products from various manufacturers. For example Nature secret and 4ever both use the natural ingredients and cater to the same segments high level of bargaining power of the buyer is cause for the switch to another brand. Price sensitivity also a key to switch to another cosmetic brand, for example Sri Lankan national base manufacture chandanalepa 100ml body lotion costs Rs. 195.00 and 225ml cost Rs.375.00.

Threat of substitutes – High Due to the variety of products available in the market-unsatisfied user of Vaseline can easily switch for nature secret, 4 ever, or Chandanalepa. The highest level of innovation and technology has made the threat of substitutes for all the players in the market.

1.5 Competitor Analysis - Nature Secret Product Nature secret is one of the most global and Sri Lankan well recognized skin care brand. Nature secret popular as a company uses natural ingredients and ayurvedic remedies along with high quality products. The key is Nature secret products not tested on animals and not use any unhealthy oils for the production. Nature secret product portfolio as follows. 

Skin Care - Facial Masks, Facial Cream and Gel, Face Scrubs, Eye Care, Skin Toner, Sun Protection

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

Bath And Body - Body Cleanses, Body Scrubs, Body Lotions And Cream, Soaps, Hand And Foot Care, Body Oils



Hair Care - Shampoos, Conditioners, Hair Gel, Hair Oils and Tonics

Price Nature secret is pricing on premium. Targeted to middle class and upper class low class customer base. Place Nature secret products are available in retail shops, cosmetic shops, pharmacies supermarkets, airports and nature secret spa outlets. The online delivery service also done for the customer convince. Most selling skin care and baby care products available in all over Sri Lanka. However, hair care, bath and body, fragrance, gifts and spa products available at only high-end supermarkets like keels super and arpico. Promotion Nature Secret use advertising and sales promotion. It has used TV commercial Advertisements

and

newspaper

advertisements to create awareness among consumer. Nature Secret has also used digital marketing platform like Facebook, Instagram and YouTube to make awareness and promotional campaigns. To increase brand recall, Nature Secret has sponsored events such as Ru - Kirula Jathika Rupavahini Awrudu Kumariya 2018. Nature Secret sustainability projects such as Plant Research and Medical Plant Garden and Medical Plant Book has also used to promote carbon foot prints among competitors. Competitor Analysis - 4rever Product 4rever is Sri Lankan local skin care brand with high brand recognition. 4rever is popular among users as a brand, which uses, natural ingredients and ayurvedic remedies along with high quality. 4rever product portfolio can categorize according to the range. Gold, Kohoba Kaha, Hibiscus, Lunuvila, Venival. Price 9

4rever using price-skimming strategy. Targeted lower - upper, middle class and upperlower class customer base. Place 4rever products are also available at retail shops, cosmetic shops, pharmacies supermarkets and Chandani Bandara saloons. The online delivery service also done for the customer convince. Most selling skin care in gold range available in all over Sri Lanka. However Kohoba Kaha, Hibiscus, Lunuvila, Venival. Products available at only supermarkets like Cargills food city, keels super and arpico. Promotion 4rever more on advertising and sales promotions. It has used TV commercial Advertisements and newspaper advertisements to create awareness among consumers. 4rever has also used digital marketing platform like Facebook, Instagram, twitter and YouTube to make awareness and promotional campaigns. To increase brand recall, 4rever invest money on CSR projects in dalada perehara SWOT Analysis Brand Strength Vaseline  Over available in 60 countries for over 130 years  Strong advertising on brand  Strong brand recognition and high market share  Petroleum jelly is widely used for dry skin  High versatility of the product and good R&S  Good presence of Vaseline products due to try good distribution

Weakness  High competition in skin care and cream segment  Some products use the name Vaseline in their products cause for fake product

Opportunities  Online purchasing  Not any direct competitive petroleum jelly products that effect Vaseline petroleum jelly market share  so many new innovation for dry and very dry skin

Threats  New entrance  vat and tax increase  Rapid incase of inflection  Encouragement for local manufacture  Direct competition with Johnson & Johnson they also used petroleum jelly  Lack of customer advertising focus on more trade promotion

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Task 02 2.1 Skin Care Category Vaseline in moisturizing skin care category. Moisturizers are the product, which design to have extra layer of the skin softer and smoother. It includes higher level of water or hydration and reduce the skin evaporation. Moisturizers especially use for the dry skin and use to make skin smooth. Protect sensitive skins and improve skin tone and texture. Aging skin makes softer and well hydrated. Moisturizers include more oils in the product like petrolatum, aloe and acids.

Moisturizing

Dry Skin

Oil Skin

Aging Skin

2.2 Category Growth

Moisturizing Body Lotion 18 16 14 12 10 8 6 4 2 0 Moisturizing Body Moisturizing Body Moisturizing Body Moisturizing Body Moisturizing Body Lotion Lotion Lotion Lotion Lotion 2013

2104

2015

2016

2017

The above graph is an author's projection on publically available data. Moisturizing body lotion category in Sri Lanka had grown in last 5 years. In 2013 it was 7%, 2014 category growth rate (CAGR) rise up TO 8.5%. it was 1.5% incensement in CAGR. Sequentially in 2015, 2016 AND 2107 CAGR accounts to 11%, 13% and 15.3%. When comparing all 5 years time period CAGR increment of moisturizing body lotion category by 2% to 3% by each year.

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Vaseline 40 35 30

2017

25 20

2016

15 10 5

2015 2104 2013

0 -5

1

2

3

4

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The above graph is an author's projection on publically available data. 2.3 Vaseline Category Growth Rate The Vaseline category growth rate in last 5 years is described by the above chart. Overall, the CAGR has positive growth over years. Overall, in 2013 there was a decline of the CAGR as minus growth rates were there. By the end of each year brand has shown a positive CAGR than the beginning of the each year. 2.4 Vaseline Brand Volumes 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 2013 vaseline

2104 vaseline

2015

2016

2017

vaseline

vaseline

vaseline

vaseline

The above graph is an author's projection on publically available data.

The Vaseline brand volumes accounts Rs 2,987,73, Rs3,377,864, Rs 3,612,365Rs 3,733,456 and Rs 3...