Competition Deck - Internal ICCC
Transcript of Competition Deck - Internal ICCC
“Works where it hurts.”
Team AEO2: Serene Chen Rosie Fan Katie Chen
Tiger Balm needs to focus on targeting greater market penetration and a wellness niche to move forward
Issue Identification Customer Segmentation ImplementationRecommendations
Acquisition of related companies
Target greater market penetration to increase
revenue
Enter the wellness industry with new
products
● Strong brands under large corporations are too expensive
● Acquiring brands active in one country are too limited
● Very broad sphere
● Many paths of product mix expansions are not correlated enough with our core brand
● Entering new markets means unfamiliar and difficult regulation procedures
● Customers in penetrated markets already have brand awareness
North America High revenue growth 28.3% growth in 2014
Existing plants for manufacturing
High adoption rate of Tiger Balm products
Issue Identification Customer Segmentation ImplementationRecommendations
Asia & Middle East
Medium revenue growth 18.2% growth in 2014
Existing plants for manufacturing
Very high adoption rate of Tiger Balm products
Europe
Low growth 5.2% growth in 2014
Low adoption rate of Tiger Balm products
Very strict regulation requirements
OPPORTUNITY
Introduce new product line to penetrate Asian
and Middle Eastern markets
OPPORTUNITY
Capitalize on high growth through
penetration in the US market
Increase market penetration with a focus on the US and Asia/Middle East
1 2Expand the Tiger Balm
Active line to the US market
Develop and launch a new Tiger Balm Pink Patch
product in Asia/Middle East
Issue Identification Customer Segmentation ImplementationRecommendations
Increased penetration of new consumer segments in developed marketsOUTCOME:
The US provides the greatest opportunity for further market penetration, specifically within the active lifestyle consumer trend
Region % Growth % of 2014 Revenue
Americas 28.3 11.9
Europe 5.2 9.9
Middle East 17.7 14.2
Asia 18.6 64.1
Total 18.2 100
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31
20142008
2
Growing participation rates in sports among US high-schoolers exemplifies the trend of health and fitness
Rapid growth in Tiger Balm’s US market and previous dominance of US revenue in 2008 set precedent for a
second wave of growth in the US
Issue Identification Customer Segmentation ImplementationRecommendations
Existing distribution channels, push marketing tactics, and sponsorship avenues can facilitate an easier transition of the Active products
Leverage our many existing outlets for Active product distribution
● 60,000 outlets● Chain superstores - Walmart
and Target● Pharmacy chains - Walgreens,
CVS
Utilize push tactics to heighten B2B sales efforts towards sports clinics
● Success in previous sales efforts
● Target end consumers of low to high-intensity, non-professional athletes
Leverage existing advertising and sponsorship avenues
● Sponsorship of marathons, local competitions, and other sporting events
● High-profile athlete endorsements
Customer Acquisition
Customer Activation
Issue Identification Customer Segmentation ImplementationRecommendations
Barriers to Entry LOW
LOW DIFFICULTY
MEDIUM DIFFICULTY
Increasingly pharmaceutical companies are using both a traditional push marketing
strategy alongside a direct-to-consumer strategy
Develop a new Tiger Balm product targeted towards the niche feminine pain market in order to increase growth in the high-performing Asian region
Issue Identification Customer Segmentation ImplementationRecommendations
TIGER BALM PINK PATCH
Greater customer retention through product packaging
Niche product vs. another all-around panacea product
Potential to better activate and retain more female customers8 in 10 people who use Tiger Balm continue to use it and
majority of users are female
Greater need for product in Asian culture and customs
Asia provides the least stringent regulations and offers the second highest revenue growth at 18.6%
MEET KIM
● 25 years old
● Lives in Korea
● Works in an office
● Prefers not to take pain relievers
or other drugs for feminine pain
Kim faces a different medical need than women in Western countries,
that can be addressed by the specialized Tiger Balm Pink Patch
Issue Identification Customer Segmentation ImplementationRecommendations
TARGET: 230 Million
People Engaged in
Sports
Financial Projections for expanding Tiger Balm ACTIVE into the United States
Expected costs$250,000
1,500,000 Expected units sold in Year One
Issue Identification Customer Segmentation ImplementationRecommendations
TARGET: 230 Million
People Engaged in
Sports
Financial Projections for expanding Tiger Balm ACTIVE into the United States
Expected costs$250,000
1,500,000 Expected units sold in Year One
Issue Identification Customer Segmentation ImplementationRecommendations
1,000,000Breakeven point (units)
0.4%Of total market space
5,300,000 Breakeven point (units)
Revenue in 2022$15.6M
Tiger Balm PINK PATCH adds a significant new revenue stream in a low competition market
Issue Identification Customer Segmentation ImplementationRecommendations
Break Even
4.56.0
8.5
11.0
13.0
15.6
The launch of Tiger Active in America and Tiger Balm Pink Patch could be completed in as soon as 1.5 years
Issue Identification Customer Segmentation ImplementationRecommendations
Long-term strategy: Saturate American, Middle East, and Asian markets and work on increasing user adoption in European
markets, becoming the world’s premier leader in topical pain relief,
Mitigating regulatory and competitive risks associated with targeting new customer segments
Issue Identification Customer Segmentation ImplementationRecommendations
Problem: Stringent Regulatory Demands and Increasing Product Imitations
Repurposing an existing product - Tiger Balm Thin Patch - reduces the risk that the Pink Patch will find it
difficult to be approved
Lengthening the implementation timeline to allow for room in the event of a longer approval process
Mit
igat
ion
s
Outcome
Ability to expand both the Pink Patch and Active
products to new countriesImplement a seal and expiration date to further validate
and distinguish our product from fake competitors
“Works where it hurts.”
We welcome your questions.
Exhibit 1: Active Line Expansion
Exhibit 2: PINK PATCH Projected Sales
Exhibit 3: PINK PATCH One Time Costs