willing and able
TRANSCRIPT
THE PLAN OF LAUNCHING
BRAND IN EASTERN EUROPE
Authors:
Team name: Willing&Able
Team members:
Tetiana Ivanova
Mariia Titova
Yuliia Anishchenko
Eugeniia Khripunova
WE SUGGEST
• to add new line “Fresh Effects” for uncovered segment of our Target Audience ( women 15-24 years old)• to use not only such media tools like TV, Outdoor, Print, Cinema but add social media activities and different promotion activities like Celebrity endorsement and others.
9%
12%
15%
13%12%
12%
13%
14%
The Urban Population Of Women(15-54 years old) in UA (Target Aidience)
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
Regenerist (30 -54 age women)
Total Effect 7X (15 -54 age women)
Age Defying (20 -29 age women)
Fresh Effect (15 -24 age women)
Complete, Active Hydrating,Gentle Cleansers, Skin Adapt(15-54)
Olay’s product lines,that cover prime prospects
NEW
Target Audience(mass market)
Women 15-54 years old
Women want to be natural, attractive,
fresh looking
TARGET AUDIENCE, PRIME PROSPECTS (INCLUDING
DEMOGRAPHIC, FUNCTIONAL, PSYCHOLOGICAL NEEDS AND
INCOME) FOR EACH OF OLAY’S LINE
*based on list 2 “Willing And Able.xsl
SHOPPER & CONSUMER BARRIES
Perceived of unreasonable price
Principles & Prejudice
Perceived lack of need
Habits/ Predisposition to other brands
Concern about safety of product
Lack of trust for company, product or seller
Reasonable location of the trade channel
Low brand line-up
Lack of “shelf pop”
Unavailability of samples/catalog
Absence of consultant at the point of sale
Price of the product
Olay MarketingActivities
TV
Outdoor
Cinema
Social Media
Promotions
Testing
Communication budget – 3,000,000€(where 150,000€ for social media and 200,000 € for promo-activities)
Sampling budget – 450,000 €
Fiscal Year 1(2013-2014)1 2 3 4 5 6 7 8 9 10 11 12Jul Aug Sep Oct Dec Jan Feb Mar Apr May Jun
Act
ual
Lau
nch
of
the
Ola
y
TV campaign Shot Shot Shot
Print Advertising, in press & magazines
Outdoor and billboard advertising
Ads for Fresh LineAdvertising for
Youth Lines
MicrositeIntegration into main site
Online advertising, promotion on fb pages, youtube, vk, twitter…
Nov
Press Releases
Launch of intensive PR activities
Celebrity endorsement
Sales Promo
PretestingSamplings
in pressSamplings
in pressSamplings
in press
TotalCost
500,000€
650,000€
150,000€
200,000€
450,000€
COMMUNICATION PLAN
1,200,000€
300,000€
THE BEST AWARENESS RATES AND TOTAL
MARKETING BUDGET
The best options with the highest awareness with current media tools is 80% with 3,000,000€ budget
*based on our own application for awareness calculation1- communication budget
But with 70% awareness we will spend 2,650,000€and will be able to spend 350,000€ for Social Media
and Promotions Activities
Total Marketing Budget
Media Tools Awareness Cost, €
TV 30% 1,200,000
Print 10% 300,000
Outdoor 10% 500,000
Cinema 20% 650,000
Social Media 15% 150,000
Promotions 15% 200,000
Total (CB1) 100% 3,000,000
Sampling Budget 450,000
Total Marketing Expenses 3,450,000
Total Marketing Expenses 3,584,860 $
*based on “Willing And Able.exe
SOCIAL MEDIA
Activity ResultBroads reach campaigns
Drove big results for shot periods
Facebook & Vkontakte, Live Journal & Twitter
Best driver for engagement, new visitors
YouTube Drives traffic and video engagement with minimal effort to manage
FB & VK Ads Inexpensive, precise targeting for awareness and marketing campaigns
Contests Increase fans and engagement
Content Quirky topics = best engagement& shares
Marketing Content Necessary, but lowest engagement – must find interesting spin to increase clicks
Product & Marketing Integration
Making social a regular activity in product & marketing planning is a process but will be big win long term
CURRENT MARKET POSITION vs.
COMPETITORS
Marketing Profile for skin-care market
Marketing Price/Quality Matrix
How many people will buy skin-care product of each
brand? L'oreal Paris
OLAY
Diademine
Lirene
Avon
Nivea
Garnier (L'orealCo)Черный Жемчуг
Others
18%
15%
15%15%
10%
10%
7%
7%3%
*based on list 2,3,4 “Willing And Able.xsl
TRADE CHANNELS
Perfumeries
Watsons,
Cosmo,
L’etual,
Perfume
Shop etc.
Creating the image
of high-quality premium product.
Target audience – women who
seek for beauty products
and actively use it
Supermarket/
Hypermarket
Metro C&C,
Silpo/Fozzy,
ATB,
Klass,
Rost etc
Entering
mass market
Pharmacy
Med-Service,
Zdorov’YA,
Velika
Apteka, etc
Positioning treatment
products for women
who seek for more
intensive skin care
CUSTOMER AND BUSINESS DEVELOPMENT
DISTRIBUTION: Linear Regression• Y: Weight Distribution – WD (%)• X: Numeric distribution – ND (# of stores)• Hypothesis: there is an association between the two variables; high rate of
numeric distribution leads to high rate of weight distribution
Channel Linear Regression R2 Conclusion
Eastern Europe WD = 43,62 + 0, 000906 * ND 0,959 95,9% - correct forecast
Perfumery/
Household
WD = 44,15 + 0,002576 * ND 0,996 99,6% - correct forecast
Supermarket/
Hypermarket
WD = 82,71 + 0,000821 * ND 0,589 ×58,9% - correct forecast
Pharmacy WD= 36,41 - 0,00368 * ND 0,18 × 18% - correct forecast
Distribution targets by channel:
Eastern Europe:
ND (X) = 40000; WD (Y) = 79,85
Supermarket/Hypermarket:
ND (X) = 10400; WD (Y) = > 66
Perfumery/ Household:
ND (X) = 20800; WD (Y) = 97,72
Pharmacy:
ND (X) = 4800; WD (Y) = > 39
Assessment made by the
analyzing the data of
competitors:
•Competitor 2 has ND= 9591;
WD=90, so with ND 10400
we are able to cover trade for
not less 66% in
supermarkets/hypermarket;
•Competitor 3 has ND=3178;
WD=39, so are able to cover
trade for not less 39% in
pharmacies.
RIGHT PRICING
5-20%
Depends on:
• unconditional
volume discounts;
• the retailer's
margin
5-7%
Depends on:
• discounts;
• allowances;
• listing fees
PRICE POINTS
Back
Margin, %
Front
Margin, %
Price Index Discription
5 5 1,1 High-traffic stores, SM/HM, consumer chose the product
without consulting
6 10 1,16 Pharmacies, low rate of consultancy, promo activities
provided by stores
7 15 1,22 Beaty stores, qualified personnel who can consult consumer
in case of need and to help with right choise, promo
activities provided by stores
5 20 1,25 Premium perfumeries, high qualified consultants
SHELVING/PLACEMENT
We suggest:
• place lines Olay Total 7X Effect and Olay Fresh
Effects for prime prospects within consumers eyes;
• place Olay Fresh Effects in that part of skin care
section where skin care product for young women 15-23
is located (for example close to NIVEA Pure Effect)
• place on higher shelf as it is more expensive and
intensive product line;
• place Olay Age defying on the shelf under Olay Total
7X Effects;
• place less intensive and cleansering skin care products
on the lowest level as that products line are auxiliary.
LOCATION IN STORE –
skin care products section
Olay Shelf Share, % -
range between 7% and 10%.
Reasoning:
1) Olay needs to have competitive benefits and
not to get lost in the aisles in the store;
2) As Competitor 4 has high rate of Shelf
Share we can assume that this competitor
has a wider assortment and this brand is
our main competitor
MERCHANDISING AND DISPLAY
STRATEGY
PROMO
STRATEGY
POSM MENU
HM/SM & HFS
Perfumeries & Beaty stores
(Large&Small) Drugstores
∑
Numeric
Distribution
per 1
store
Total
number
Numeric
Distribution
per 1
store
Total
number
Numeric
Distribution
per 1
store
Total
number
Display 0 0 0 300 1 300 0 0 0 300
Counter Display 5200 1 5200 5200 1 5200 2400 1 2400 12800
Glorified Testers 0 0 0 5200 1 5200 2400 1 2400 7600
Stopper Horizontal 10400 1 10400 10400 1 10400 4800 1 4800 25600
∑ 15600 21100 9600
Olay product should be highlight on the point-of-sales
in order to be noticeable from competitors.
We suggest to pay attention to standing out of product
in Perfumeries and Beauty Stores where the
competitive environment is higher and in HM/SM
where the traffic is highThe beginning of the
year
Throughout the year
HM/SM & HFS Sampling On pack promo, coupons;
price off; rebates;
Perfumeries &
Beaty stores
(Large&Small)
Sampling Price off; free goods;
Drugstores Sampling Free goods; price off.
Olay Display Share - 15-18%. Reasoning:
1) Olay needs to highlight the product in order to catch
consumer eye;
2) Olay products have the wide assortment in order to this it
should be noticeable by potential consumer
SUPPLY NETWORK OPERATIONS
Supply
from the
plant
w1 w2-8 w9 w10 w11 w12 w13 w14 w15-18 w19 w20-23
MSU 9,221 0 3,1031 0 0 0 0 13,18 0 12,726 0
Cases 11383,95 0,00 3830,99 0,00 0,00 0,00 0,00 16271,60 0,00 15711,11 0,00
Pallets 384,21 0,00 129,30 0,00 0,00 0,00 0,00 549,17 0,00 530,25 0,00
Cotainers 8,00434 0 2,693663 0 0 0 0 11,44097 0 11,04688 0
Pallets on
ground 384,21 384,21 513,50 441,42 331,42 174,34 61,28 497,39 45,17 462,37 10,14
Deman
d from
custom
ers
Cases 2135,80 3259,26 4654,32 3349,79 3349,79 13399,18 3349,79 13399,18
Pallets 72,08 110,00 157,08 113,06 113,06 452,22 113,06 452,22
MSU 1,73 2,64 3,77 2,713333 2,713333 10,85333 2,713333 10,85333
MARKET PLANNING ASSIGNMENT
PhD ASSIGNMENTCost elements Kiev DC Ordzho DC
Inbound transportation, USD/year 0 72522,75
Storage costs, USD/ year 2116,614 705,538
Palletized Handling (inflow+outflow), USD/year 17093,68 9205,278
Case picking, USD/year 23917,53 7118,31
Outbound transportation, USD/year 72567,96 82818,33
TOTAL 115695,8 172370,2
According to
following
assumptions KIEV
DC is the most
optimal warehouse
Finance&Accounting Department
Brand Financials Year 1 Year 2 Year 3 Year 4 Year 5
Volume,t.pcs 43 456 45 629 47 454 50 776 47 729
Price,t.$ 14 163 260 222,03 15614991403 16889172540 19336408621 17085654619
Sales Revenue,b.$ 615 478 636,21 712 496 443 793829595,9 996 849 570,20 803 041 595,90
Cost of Goods Sold,t.$ 325920,2475 342216,2625 355904,9175 380818,26 357969,165
Gross Margin,t.$ 615 152 715,96 712 154 226 793473691 996 468 751,94 802 683 626,74
Marketing Expenses,t.$ 3 585 3650,3068 3796,31912 4062,06144 3818,33776
Organization Costs,t.$ 200 200 200 200 200
Distributor margin,t.$ 55406,44208 58176,76463 60503,83598 64739,1042 60854,75805
Profit,t.$ 615 093 524,66 712 092 199 793 409 191 996 399 750,77 802 618 753,64
*VAT and NPV are not include
**all accountings are based on the opensource information
***the volume grows on the 5,4,7% the 2,3,4 years and it decreases on 6% 5 year
What we suggest about purchases1. The purchases will be made from Poland (the factory in the city Lodz) by fixed lots (Mercantile purchasing). One person of our team will be able to do all purchasing operations.
2. Key targets are: to minimize expenses, find a reliable supplier.
3. Purchases are close to Supply Network Operations. Also it connects with Marketing Department.
the price will be minimized if we can buy our product from Poland, because their factory has all recourses and logistics costs will be optimized because Poland close to Ukraine
Purchases have one of the most important roles, because we have no factories which produce Olay’s products
The main strategy is Supplier Optimization (The company chooses an optimum mix of vendors who can provide the best prices and terms. This process usually means that the less able suppliers who cannot provide a quality service at the terms and prices required are discarded.)
Human ResourcesTask 1
to provide the opportunity of participation in a various projects aimed at the development ofleadership skills.
TASK 2
For the reason that team have not formal product management qualifications it is necessary to conduct several activities:
opening skills training which informs the team with the Olay products, with the list of its features, pros and cons of this product, and determine how it contrasts with competitors;
additional skills training during the work on the Olay launch under the guidance of project leader which has tremendous experience on the subject;
functional skills training which develops skills and knowledge.
In order to increase the satisfaction in "relationship with manager" field we suggest:
to conduct corporate training which develops management skills;
to conduct team building events such as team building and team spirit;
Human ResourcesTask 3
Organization Costs
incorporation and
underwriting fees and
promotional fees
costs of printing
stock certificates
other payments necessary to
bring the corporation
into existence
costs include the payment of an
incorporation fee to the state
the payment of fees to attorneys
payments to promoters
legal fees
Human ResourcesTask 4 Task 5
In order to address the growing concern ofthe project leader in CBD and theorganization in general we suggest:
to provide the control over the informationsharing, information channels (e.g. thedevelopment of schedule, personal meetingsof leaders of the departments);
to review the level of payment based on thestudy of the market;
to provide employees benefits; to provide flexible work hours, working at
home and the additional holiday; to increase the commitment to the company
by explaining the organizational mission,values and strategies, timely and honestcommunication with employees focused onpersonal relationships, providingopportunities for employees to express theirown ideas about improving work systems;
to plan work tasks so that increase thediversity of skills, self-sufficiency andfeedback;
to provide the opportunities for the careergrowth by consulting about the developmentof the career and introducing moresystematic events for the identification oflabor potential.
It goes without saying that there is amisunderstanding between thedepartments of the organization as theyhave different interpretations of the maincriteria for success of the organization. Inorder to strengthen the functionalrelationships between the departments,we propose to increase the effectivenessof organizational communication:
to regulate the information flows via thecreation of a data bank, an internal marketinformation and tracking the locations ofinformation overload;
to use internal information systems (e.g.newsletters via the e-mail, online events).
to establish a feedback system between thedepartments;
IDS Information &Decisions SolutionsTo support Olay launch we suggest:
to provide a single source forprofessionally managed networkand communications costs andreliability;to consolidate and streamlinemulti-site, multi-vendorwarehousing networks in anylocation;to provide a vendor selection andmanagement for consolidatedbilling and process standardization;to provide complete systembackup and disaster recoveryfunctions;to provide single point of controlto standardize processes;to provide enhanced visibility andreporting capabilities.
eCommerce Supply Network Solutions
to create customized reports;
to provide remote access to
track shipments, dock schedules,
ect;
to provide the check real-time
inventory levels;
to provide seamless integration
to vendors needing order access;
to consolidate multi-site, multi-
vendor warehousing networks in
any location, including third-party
facilities;
to provide the request shipments
quickly for new customers;
to provide comprehensive cost
analysis of all logistics services.