MARKETINGMARKETING

Agenda

• The role of Marketing

• Developing a Marketing plan

• Marketing mix - the 4P’s

• Ethical & legal considerations

• Case Study – Aerogard

• Questions!

The Role of Marketing

Manage the marketing mix of existing products- Ensure the product formulation and packaging is meeting consumer expectations

- Ensure the price is competitive and the product is available where consumers expect it to be

Generate new business opportunities- Identify un-met consumer needs

- Develop new products to meet these needs

Create consumer demand for our products- Develop strategies to make consumers aware of our products

- Develop and implement plans to generate trial

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Developing a Marketing Plan

Set the Business Objectives : Grow sales, increase profit or both? Maintain or grow brand share vs. competitors?

Where are we on the Product Life Cycle? Situation Analysis (SWOT):

External trends : what is happening and why? Competition, consumer trends, social trends etc (Opportunities/ Threats)

Internal : What are our strengths and weaknesses?

WHERE DO WE WANT TO

BE?

Develop Marketing Plan : Strategic plan for achieving these objectives (4P’s)

Develop Financial ForecastBuild volume forecastDetermine marketing investment required to achieve

objectives

WHERE ARE WE?

HOW SHOULD WE GET THERE?

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The major controllable variables that we have to get the desired response from our target market :

Marketing Mix – 4 P’s

Target Market

PRODUCTAnything that can be offered to a consumer for use or consumption, that might satisfy a want or need

Product Decisions include :Brand/ sub-brand nameDesign & FeaturesPackagingQuality

PRICEThe amount of money charged for a product or service that consumers exchange for the benefits of having or using the product or service

PROMOTIONCommunication of the product benefits that persuades consumers to purchase, e.g.

Advertising Sales Promotions Publicity Personal Selling

PLACEHow the products are made available to consumers – making the product available in the right place, at the right time, in the right quantities

Legal & Ethical Considerations

• Legal and ethical aspects affect every part of a brand and its products

• Deceptive and Misleading Conduct:

− ACCC: consumer watchdog

− Product Claims:

− All packaging and advertising claims must be supported to the satisfaction of independent bodies such as TGA

− Consumer Promotion:

− all aspect of consumer promotions must be clear i.e opening and closing dates, structure of prize pool , entry mechanism

• Pricing

− Pricing and Terms of Trade must be consistent between the Manufacturer and Retailers

− Price maintenance/discrimination: Manufacturers are unable to enforce a certain price point in any retailer. All prices are advised as RSP: recommended selling price

Legal & Ethical Considerations

• Formulations:

− All products are subject to regulations and guidelines which outline:

− Raw materials which can / cannot be used for a product type (e.g. environmental / skin sensitisers)

− Packaging warnings (e.g. Caution and Keep out of Reach of Children) - dependant on the formulation

− Therapeutic Goods; GMP manufacture

• Packaging

− Packaging Covenant is a commitment by manufacturers to the Govt. to:

− Reduce quantity of packaging material e.g. less plastic in caps

− Use more environmental packaging materials e.g. recyclable plastic

− Implement an ongoing improvement plan

− Failure to conform, results in the manufacturer being responsible for collection of packaging from the consumer

MARKETING PLAN

Case Study

Situation Analysis: Aerogard

• Market Trends

− The repellents category is valued at $15m and experiences growth/declines according to how strong each summer season is.

− 80% of category volume is sold during summer (Oct-Feb) when insects are most prevalent

− QLD market is less seasonal due to its tropical weather (QLD accounts for 35% of sales)

− There are four main product formats within the Repellents category:

− Aerosols (50%)

− Roll-ons (20%)

− Pumps (27%)

− Lotions (3%)

− Aerogard is market leader with 63% share and has 2 key competitors: ‘Rid’ & ‘Off’

• Product life cycle

− Aerogard is a mature brand within a developed category

− Aerogard’s role in the category is to lead growth through product development and innovation

Situation Analysis: Aerogard (contd)

• Consumer Needs

• Attitudinal differences exist between northern and southern regions of Australia which affects the emphasis placed on various category needs:

− The North

− In the tropical regions of Queensland mosquitoes, sandflies and flies are viewed as health hazards -protection from disease carrying insects is a serious issue

− Superior efficacy is key in product choice

− The South

− Insects are considered to be more of a nuisance than a genuine health threat.

− The primary motivation for purchase is to repel however there is less emphasis on superior efficacy and a more of a focus on secondary benefits.

Secondary Needs

− Long lasting

− Secondary Protection: Moisturising, Anti-Itch, Less Chemicals/More Natural

Primary Needs

− Efficacy – it has to work!

Consumer Behaviour: Aerogard

• Consumer Usage and Purchase Behaviour

− Personal repellents are accepted as part of summer life. They are durable, portable and the barrier/defence is constant and moves wherever you go.

− In the north, continual protection is required throughout the summer months. In the south, applications are less frequent, occurring mostly on specific outdoor occasions.

• Motivation for Category Purchase

− Key motivation is protection from insects. The primary category brands have the required level of efficacy thus individual brand choice is driven by product form and secondary category benefits.

• Applicator Forms: Secondary Category Benefits:

− Aerosol Moisturising

− Pump Sprays Sunscreen

− Lotion Pleasant Fragrance

− Roll On Less Chemicals

Brand Positioning - Aerogard

• Positioning

− Aerogard is trusted by Australians to provide you and your family with the maximum protection from annoying, biting insects.

− Aerogard offers innovative products to cater for all family needs in convenient to use formats.

− Aerogard: The insect repellent that gives you the freedom to enjoy the Australian summer.

SWOT ANALYSIS• STRENGTHS

• Market leader

• Strong heritage

• High awareness

• Experienced sales force

• Strong distribution in supermarkets

• R&D expertise

• WEAKNESSES

• Declining market share due to increased competitive activity

• Brand image becoming outdated

• High cost of active ingredients

OPPORTUNITY

• Alternative suppliers with cheaper ingredients

• New products with secondary benefits

• Alternative channels such as pharmacy and specialty stores

THREATS

• Competitors gaining market share

• New competitors enter the market

Aerogard Marketing Objectives & Strategies:

Marketing Strategies–Lead the market through continuous, superior product innovation–Strengthen communication strategy by focusing on Aerogard’s unique benefits v competition–Reduce reliance on deep price cutting to drive sales–Implement product cost saving projects–Modernise brand image

Marketing Objectives–Grow Sales by 5%–Increase profitability of brand by 2%–Grow brand share from 68% to 70%

Marketing Mix - 4P’s

• Product

− Launch new Aerogard products

− Launch new pack graphics that project a more modern brand image

− Initiate cost saving project to improve profitability

Aeroguard 07/08 Season

• The Situation:

− Consumers dislike of PIR fragrance represents the highest opportunity for category involvement for lapsed/non-users.

− Almost half of Aerogard users do not like the fragrance & a portion of Aerogard users have left the brand based on the smell

Aerogard Odourless

Consumer Insight

Australians love the outdoors during summertime but dislike the use of

personal insect repellent as the overpowering smell can be irritating .

Consumers are looking for a trusted and effective solution that they can use with confidence for the entire family

“won’t get in the way of perfume at a BBQ”

“feel more comfortable to spray on face”

“good for social situations”

“can use it more often”*

Product Benefits:

Effective protection without the repellent odour

The new-generation range will also deliver the following secondary benefits;

• Low Irritant

• Suitable for use on kids (12months & over)

• Non-greasy

Aerogard Packaging Evolution

• Modernise & Contemporary Design

• Re-enforce Family Protection

• Simplified communication hierarchy

• Impactful sub-range communication

Marketing Mix - 4P’s

• Price

− Aerogard’s perceived superiority and market leading position must be reinforced with a premium price

− New product launches will command a premium price by offering unique benefits.

− All variants will be price promoted during peak season in order to minimise consumers switching to cheaper competitive offers

Marketing Mix - 4P’s

• Promotion / Advertising

− Use TV as the main media vehicle to maximise reach during the peak of the season

− Sample new Odourless at outdoor events to generate trial

− Ensure all advertising communicates the brand positioning ie. effective, safe protection against insects

− Continue to build positive association with health authorities

eg. Queensland Tropical Health Unit, educate consumers about prevention of mosquito borne diseases

TV

RADIO

IN-STORE

EVENT SPONSORSHIP (Moonlight Cinema)

SAMPLING

i360 Campaigni360 Campaign

Marketing Mix - 4P’s

• Place / Distribution

− Supermarkets will remain the focus for distribution of existing and new product lines

− accounts for 94% of Aerogard sales

− Distribution objective for Aerogard with Sunscreen is 95% for supermarkets and 60% Pharmacy

Questions