Marketing BIC CASE Study-5 PDF

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exercice marketing management...

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MARKETING BIC STEP 1 - Analyze the environment of BIC pens in France in 2019 1. Define the market in one sentence The pen market represents the main segment of the writing market and covers all sales of pens: ballpoint pens, fountain pens, writing markers, etc. 2. Analysis of the 4P's of Stabilo: -

Prices

Stabilo's prices are generally higher than the average, but remain very popular as customers trust in German quality. -

Products:

Their main product is the Stabilo Boss Original which has become a reference for customers. Nonetheless, Stabilo has a wide range of products: Stabilo point 88, Stabilo pen 68, Stabilo Easy Original or Stabilo Woody 3 in1. The company is betting on the German quality and is quite innovative as it releases from two to four new products per year according to Les Echos. Stabilo proposes a design-your-product service. On Thursday 15 September 2016, Stabilo (pencils and coloring felts) replaced its plastic cases by cardboard packs and remodeled its packaging "facing". Stabilo proposes customers services available through WhatsApp. -

Promotion:

Stabilo's strategy is to build an emotional connection between the brand and customers. The company makes use of social media like Instagram and tackles social issues like the protection of the environment (use of renewable energies and recycled materials for their products). Through its slogan "Highlight the remarkable", the company has promoted remarkle women, such as the two physicians Katherine Johnson and Lise Meitner or the famous wife of President Wilson, Edith Wilson. This ad has gone viral with massive reactions from social medias. The brand also makes use of sales promotion, especially for new school year. Between 07/01/19 and 09/15/19, Stabilo offered to reimburse your favorite product if you bought 3 Stabilo products. -

Place:

The French subsidiary ranks second after Germany. 50 % of the sales are made thanks to mass distribution; 25% with office supplies stores (Bureau Vallée, Office Dépôt) and 20% with speciality stores such as Fnac or Rougier&Plé. Since 2007, Stabilo has been equipped with Inconso’s SAP LE-TRA solution at its German production plant in Weißenburg, and has called on the software company to adapt and improve its transport and shipping processes. The subsidiary of the Schwan-Stabilo Group, well known for its highlighters, wanted to optimize the preparation of the goods at the time of shipment by revising the planning, the loading processes and the documented packaging as a priority. The STABILO logistics now uses mobile dialogs for the execution of processes, which range from the recording of vehicle data and means of loading, generation of confirmation of shipping units to be loaded until data entry for dangerous goods. Transport orders are created automatically, delivery notes and transport documents are printed, service providers are informed and goods are booked. In addition, STABILO now uses processes for loading optimization. The InconsoS/LSO (Load Space Optimization) add-on of Inconso and SAP manages the transport planning for the export and the determination of the necessary cargo spaces. The required dimensions of the shipping units are taken into account in the packing processes and define the most appropriate loading space. The result, represented in table and graph form, displays key figures such as weight and volume used, on the basis of which accurate data can be transmitted concerning the use of the necessary loading areas. Thanks to close collaboration with Inconso AG, STABILO International Gmbh has realized and planned further optimizations of its processes with the establishment of InconsoS/CEP for the shipping processes of its suppliers. A project on the SAP integration of transportation costs into fee documents and analyses is planned for 2017.

3. PESTEL for BIC -

Political:

Opportunities: . The French political environment is particularly stable, even compared to the rest of the European zone (Brexit, uncertainties about the next German elections). . As a member of the EU, France benefits from low rates and monetary stability. Threats: . French taxation for companies may constitute a competitive disadvantage. It is of 31% (turnover > 500 000 euros) on benefits in 2019. The amount of taxes is increased by 3,3% if the turnover is above 7.63 Million euros and by 15% if the turnover is above 1 billion euros. . French labour law does not promote the fluidity of the labour market.

the French government wants to introduce a bonus-malus system for plastic supplies; those made with recycled plastic would be less expensive but we don't know up to now the exact percentage of reduction. -

Economic:

Opportunities: . France’s economic situation is relatively good compared to the rest of the EU (+1,3% in 2019). . France’s generous policy of redistribution and social assistance promotes stable consumption. The schooling allowance is from 368 to 402 euros per child, according to the age of the child for families under a certain amount of incomes (in 2019 less than 30396 for a family of 2 children). This allowance is given in August and has a significant effect on school supplies sales. . Writing sector is in growth in France (+3% for the last 6 years). BIC is considered as the European leader in stationery. As it holds a leader’s position, competitors and economic crisis can’t overthrow the brand easily. . A wide variety of stationery (writing, markers, erasers, coloring and drawing). . The brand is established in more than 160 countries: the economic crisis risk is thus reduced. Threats: . Internet sales are growing. Gillette, which is the world number one in razors and the main competitor of Bic in this market, has developed direct sales on internet with a subscription system. The company has taken a serious advantage on Bic who had to react quickly. . In both markets (razors and writing) the company has to face retailors' private brands. - Social: Opportunities: . Growth of the leisure market. The arts and crafts sector (recent boom of coloring books for adults) are in constant growth in France for children and adults. . More and more parents do not want to buy back all school supplies every year: they are looking for quality so that their children can re-use their pencils or pens the following year. As Bic pens are often "prescribed" by the teachers in primary schools, they associate the brand to a certain quality. . The new means of writing (stylus for digital tablets) could be an opportunity to develop a new kind of pen. With this product, Bic could open up the high tech market. . French customers are more and more sensitive to the "Made in France". As the brand largely communicates on the fact that every part of a Bic pen is made by Bic in France for the French market, this argument is a growing incentive among the French customers.

. The growth of subscription as a means of purchase could improve the company margins as subscription is a direct sale. Threats: . The decline of writing in favor of keyboards typing. . Internet sales make it easier for competitors to enter. - Technological: Opportunities: . New products represent 12% of big sales each year. . Bic produces every piece in its pens. They even make their own moulds and ink. Their quality is thus hard to copy. . The tightening of environmental regulations will favor technological innovation and therefore the leading companies in their market. . French tax system particularly favorable to R&D investments. The company will be refunded 30% of all its expenses related to research (equipment, salaries, amounts for depreciations, technology watch, outsourced research expenditures, patents, etc.) up to 100 million euros of expenses. Threats: . Chinese competitors have recently succeeded in manufacturing pen tips. - Environment: Opportunities: . The development eco-friendly products is an opportunity to reach higher-income consumers. . BIC is using eco-friendly materials 5recycled or renewables that complies with the ISO 14021 norm). . Ecological issues are a good reason to launch new products and make them easier to differentiate. Threats: . The concept of "disposable" is perceived as incompatible with ecological issues. - Legal: Opportunities: BIC has to prove that its chemicals are harmless (REACH European regulation), and by doing so differentiate itself from other competitors.

. Bic intends to increase by 20% the number of its patents. Threats: . After the regulation that forbids disposal food plastic (straw, goblets), what about the beauty sector with the disposal razors ?

4. BIC social listening Facebook: publications of BIC products related to art, the brand makes contest with rewards and promotes its brand through short ads. Instagram: a lot of pictures of art made with BIC pens and some of people showing themselves buying BIC products. Twitter: also, some pictures of art made with BIC products, a few facts on the brand (someone twitted that 11 million razors from BIC had been sold, although it was not an official account).

STEP 2: be creative A - Collectively find a new category for the BIC brand for 2020. 1. Define the new category, product or service or combination The new product we propose for BIC is a bamboo toothbrush. This toothbrush is made of two parts: the handle in bamboo and the head in recycled plastic with nylon bristles. 2. Watch the competition websites and propose the analysis of the 4P’s of one direct competitor in this new category Oral-B toothbrushes Marketing Mix PRODUCT: The brand has a wide range of dental products, toothbrushes (electric and manual), toothpaste and mouthwash, dental floss (3D White and Pro-Health), replacement brush heads. They also have a range of products made especially for kids. Oral-B offers products of quality. PRICE: Oral-B has used a skimming pricing policy for its sales. The company first relied on sales of innovative products at premium prices. When brands launch similar products, the firm adopts a competitive pricing strategy with discounts and incentives. The company relies on discounts to keep its customer base and tackle competitors. Special discounts are offered for those who purchase on Oral-B’s website. The firm also provides dentists free samples and proposes to exchange your old toothbrush for a new one. PROMOTION : Oral-B uses various methods to promote its products: -

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through mainstream media, ad campaigns (print, digital and visual media) in newspapers, billboards or on the radio or the television. Oral-B also employs social media for its ads. on its website with sometimes offers, incentives and discounts. Oral-B uses social media to remain in contact with ist customers. The company also relies on famous personalities they use as brand ambassadors.

PLACE : The brand has a distribution channel that facilitate quick and easy distribution to its retailers. Oral-B sales also through its own representative or independent distributor. The brand also relies on its parent company (Procter & Gamble) for distribution. The firm is established in more than 180 countries, but the premium products are only available in limited area. You can find Oral-B products in urban and non-urban areas, in grocery stores, supermarkets, hypermarkets, malls shopping centres and even dentist’s clinic and on online stores. B - Collectively work on the 3 strategic steps (STP) for the country of your choice.

3. Propose a segmentation of the demand for this category (a tree) -

Families: we will sell to them family sets (parents and children, with various bamboo handles and head sizes). And of course, sets of heads will be available (with various sizes and different types of brush). Single persons (or young couples without children): individual sets or sets of same size. 4. Define two targets of your segmentation tree with social, economic, lifestyles or other parameters, with facts and figures, BtoB or BtoC or combination

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The two targets of my segmentation will be defined by their lifestyles. Our targets will be ecofriendly consumers, and people attracted by the “fun” aspect of our toothbrushes (customable).

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One BtoB strategy can be to build partnerships with hotels and airline companies. We would give away free samples of toothbrushes, making it easier for people to buy heads in the future.

5. Choose 1 core target - justify your choice Our core target are young ecofriendly consumers as our product embodies the brand’s desire to fight against plastic waste. We chose this target, as it is easy to access through social media and is very sensitive to environmental issues.

6. Explain what are the key needs for this target. (you may interview people, search on blogs, search on social networks) The key needs of my target are: low-prices (young people have a limited budget), practicability (putting and removing the heads has to be easy) and durable (one toothbrush has to remain usable for a certain period of time).

STEP 3: be operative OFFER: what is in your offer, explain how it works, what are the extra options, do you provide additional services, how does your packaging or your visual presentation look like? The new product e propose for BIC is the bamboo toothbrush. This toothbrush is made of two parts: the handle in bamboo and the head in recycled plastic with nylon bristles. We decided to pick recycled plastic heads because they represent the “throwable” aspect of the brand, are much easier to recycle than bamboo heads and are more hygienic as bamboo heads can mold with water. The consumer can buy the whole product or only the heads. A set of heads (3 or 4) can mix soft and medium bristles in different colors or different sizes for adults or children. The handle is presented in varied colors. We can provide small series with names engraved on the handle. We can also imagine series in partnership with companies like Disney (logos and pictures on the bamboo handle). The packaging will be either individual boxes or bigger boxes for sets of 4 toothbrushes. The boxes will be made in recycled cardboard. We also propose to develop razor heads that could fit the toothbrush handle. For limited series, we can sell the toothbrush in a tin box or in a bamboo box.

RETAIL: in the country you have chosen, how will you access the market, where can people buy you ? Who are your retailers ? How do you seduce your retailers ? Will you sell online, on which website, with which intermediaries ?

We will launch this new product in France because the distribution channels are already efficient for the other Bic products. Our sales will be mainly driven by large retailers (Leclerc, Carrefour, Auchan, Intermarché, etc.). We could seduce retailers by proposing small customized series (names series, astrological series, year series, etc.). The toothbrush will be sold online also: Amazon mainly. The head, thanks to its little size, could also be sold through vending machines that could be settled in washrooms (in malls, offices, railway stations or airport, etc.)

PRICE: What will be the exact price of your offer (in the country you have chosen), will people pay it once? Do you propose other ways of paying? Can people register to a club or subscribe to a delivery service, do you propose discounts for specific targets? (please note that no accountability excel sheet is required). We can fix the price at 3 euros for a whole toothbrush. The basic handle should be at 2,5 euros, a set of 4 heads at 1,5. All means of payment are available for this product, but no specific discount will be offered. People may subscribe to the delivery service offered by some of our retailers, but BIC will not propose its own delivery service.

PROMOTION: PULL/ Inbound marketing tools: select 2 tools and describe precisely what you would do (for example, describe the content of your white paper but do not write the 20 pages content).  

Blogs are useful tools to promote your products. We would use blogs whose themes are related to our product (reviews of ecofriendly products, blogs about the environment) as an advertising platform. Secondly, we would rely on podcasts, using famous people to catch listener’s attention and having them make a positive review of our product.

PUSH/ Outbound marketing tools: select 2 tools and describe precisely what you would do (for example, describe the content of your radio message(s) and the key sentences). 

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The first tool we would use for our product is TV advertisement. Our ads would emphasize the assets of our product in all kinds of situation: at home when you need to differentiate your toothbrush from others (name engraved), when you are traveling and you need to brush your teeth (simply travel with your bamboo handle and buy heads at a vending machine) but foremost the eco-friendly aspect (recycled plastic heads, less plastic waste…). As our product presents different assets, we would make an ad for each asset. At the end of each ad we would show The second tool would be

BRANDING: For your offer, indicate if you add another brand name to the name BIC. Either with a generic name (Bic perfumes) or with another brand name (Bic me&you). What would be the base line in your product (Bic - the smallest pens in your pocket). Would you translate this base line in various languages or only in English all over the world? This product inaugurates a new line of "ecofriendly" products which positioning is different from all products that have been created by Bic up to now. That is the reason why, a new brand has to be associated to this new product. I suggest "Bic Bamboo" which is easy to understand and memorize.

Our base line would be: the breath of trees. We wouldn’t translate this base line, as it is easily understandable and it might be badly translated....