Entering a New Market - Example PowerPoint presentation
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“Just One More”
Aaron FisherMBA, David Eccles School of [email protected]
PURPOSE
“A successful marketer is someone who can socratically reason through a challenge and find a solution through creativity and
teamwork.”
To show thought process.answers a
question.The question and an explanation as to
why it is useful are presented in theslide
notes.
Each slide
INTR
OD
UC
TIO
N
DISCLAIMER
This presentation is not meant to be a recommendation for the Luvs® brand.
This presentation is not meant to show anything more than my thought process.
On slides where data has been significantly altered or fabricated, two red triangles appear at the bottom of the slide such as those below.
This author would NEVER include altered or fabricated information in a real report.
Artificial
ValuesSe
e
Notes
INTR
OD
UC
TIO
N
COMPANY STRATEGY AND GOAL
STRATEGY: GOAL:- More Consumers - Just One
More- In More Parts of the World- More Completely
INTR
OD
UC
TIO
N
OBJECTIVE: “JUST ONE MORE”
To assess the landscape for and viability of a successful launch
of the Luvs® brand into the Canadian market.
“Just One More”
The Luvs® Direction:Just One More Country
By launching into Canada, the Luvs® brand will be able to support the company’s strategy and goal.
INTR
OD
UC
TIO
N
OUTLINE
INTR
OD
UC
TIO
N
1. The Luvs® Brand
2. The Canadian Market
3. Competitive Landscape
4. Recommendation
THE LUVS® BRAND
LUVS® ROLE
TH
E L
UV
S® B
RA
ND
Household Care
Baby Care
Diaper Brands
Premium Mid-Tier
TARGET DEMOGRAPHIC
Moms age 18-45 Household Income
under $45K Education: High
School+
TH
E L
UV
S® B
RA
ND
KEY BENEFIT
Leak
Luvs® Ultra Leakguards help lock away wetness and stop leaks, day and
night.
TH
E L
UV
S® B
RA
ND
REASON TO BELIEVE
Luvs® Ultra Leakguards
have an ultra-absorbent core, stretch sides,
and leak barrier leg gathers.
TH
E L
UV
S® B
RA
ND
BRAND POSITIONING STATEMENT
From newborn babies to toddlers, Luvs® Ultra Leakguards help lock away wetness
and stop leaks, day and night. That’s because Luvs® Ultra Leakguards have an
ultra absorbent core, stretch sides, and leak barrier leg gathers.
TH
E L
UV
S® B
RA
ND
CURRENT PRODUCT OFFERINGS
TH
E L
UV
S® B
RA
ND
DIAPERS BABY WIPES
Size Lbs.
Newborn
4-10
Size 1 8-14
Size 2 12-18
Size 3 16-28
Size 4 22-37
Size 5 27+
Size 6 35+
VariousPackage Sizes
LUVS® U.S. MARKET SHARE
Pampers43%
Huggies29%
Private Label14%
Luvs8%
Other6%
TH
E L
UV
S® B
RA
ND
Artificial
ValuesSe
e
Notes
REVENUE
“Luvs has seen double-digit growth in North America.”
TH
E L
UV
S® B
RA
ND
(2010 Annual Report, p. 43)
CURRENT ADVERTISING “Luvs® holds more and lasts longer.”
TH
E L
UV
S® B
RA
ND
Commercials
Co-op AdvertisingMobile App Website Facebook
Print Ads Other
DISTRIBUTION
TH
E L
UV
S® B
RA
ND
Club Stores
Mass Merchandisers
Grocery Stores
Chain Drugstores
Convenience Stores
THE CANADIAN MARKET
MARKET RESEARCH TOPICS:
Questions to Answer:Retail Sales of Disposable Diapers Increasing?
Disposable Diaper Use by Target Market Increasing/Stable?
Birth Rate Increasing/Stable?
Household Income Stable/Increasing?
Number of Lower-Income Households Stable/Decreasing?
Strong Preference for Brand Name Products?
U.S./Canadian Tastes and Culture Similar?
Opportunity for Niche Market Product Exists?Artificial
ValuesSe
e
Notes
TH
E C
AN
AD
IAN
MA
RK
ET
RETAIL SALES
2,000
2,200
2,400
2,600
2,800
3,000
3,200
3,400
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ValuesSe
e
Notes
Canadian Retail Sales of Disposable Diapers(in million $)
TH
E C
AN
AD
IAN
MA
RK
ET
PROJECTION
MARKET FOR DISPOSABLE DIAPERS
88.00%
89.00%
90.00%
91.00%
Disposable Diaper UseAs a Percent of Target Demographic
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ValuesSe
e
Notes
TH
E C
AN
AD
IAN
MA
RK
ET
PROJECTION
BIRTH RATE
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
Births Per Year
Average annual growth rate = 2.4%
TH
E C
AN
AD
IAN
MA
RK
ET
PROJECTION
HOUSEHOLD INCOME
$35.0
$40.0
$45.0
$50.0
$55.0
$60.0
Average Income of Various Economic Family Types
(in thousands $)
TH
E C
AN
AD
IAN
MA
RK
ET
Average annual income change = 2.39%
PROJECTION
PREFERENCE FOR BRAND NAMEOVER PRIVATE LABEL
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ValuesSe
e
Notes
67%
33%
Brand Name Private Label
TH
E C
AN
AD
IAN
MA
RK
ET
CANADA: THE PEOPLE Cultural Values
What cultural values do they hold that would be relevant in making brand decisions?
What religious influences are there? Entertainment
What do they do for fun? What forms of entertainment do they like? Which televisions shows do they watch? What type of movies do they like to see? Which celebrities or personalities do they like/relate to the most?
Household What is their household size? What is their source of income? What is their education level? Where do they live (urban, suburban, rural)? What types of homes do they live in?
Buying Habits Where do they shop? What do they buy? How do they pay for it? How much do they spend at a time?
TH
E C
AN
AD
IAN
MA
RK
ET
CRITERIA FOR MARKET ENTRY
Reason Finding Favorability
Retail Sales of Disposable Diapers Decreasing
Disposable Diaper Use by Target Market
Declining
Birth Rate Increasing
Household Income Increasing
Preference for Brand Name Products
Positive
DATA THAT COULD NOT BE FOUND:U.S./Canadian Tastes and Culture
Number of Lower-Income HouseholdsNiche Market Product Opportunity
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ValuesSe
e
Notes
TH
E C
AN
AD
IAN
MA
RK
ET
COMPETITIVE LANDSCAPE
COMPETITOR SET (ALL)Market Share Leaders
Private Label Brands
Eco-Friendly Brands
Other Brands
CO
MP
ETIT
IVE L
AN
DS
CA
PE
LEA
KA
GE
PR
OTEC
TIO
N
AVG. PRICE PER DIAPER
4
10
$0.10 $0.60(Per-diaper cost of a large pack of size 2 diapers)
(0 =
no p
rote
cti
on
, 1
0 =
perf
ect
pro
tecti
on
)
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e
Notes
PR
OTEC
TIO
N V
S. P
RIC
E (A
LL B
RA
ND
S)
CO
MP
ETIT
IVE L
AN
DS
CA
PE
LEA
KA
GE
PR
OTEC
TIO
N
AVG. PRICE PER DIAPER
4
10
$0.10 $0.60(Per-diaper cost of a large pack of size 2 diapers)
(0 =
no p
rote
cti
on
, 1
0 =
perf
ect
pro
tecti
on
)
Artificial
ValuesSe
e
Notes
PR
OTEC
TIO
N V
S. P
RIC
E (IN
-STO
RE)
CO
MP
ETIT
IVE L
AN
DS
CA
PE
PrivateLabel
(Premium)
PrivateLabel(Value)
COMPETITOR SET (IN-STORE)
PrivateLabel
(Premium)
PrivateLabel(Value)
CO
MP
ETIT
IVE L
AN
DS
CA
PE
MARGINSC
lub
Ma
ss
Gro
ce
ry
Ch
ain
Co
nv
.
Clu
b
Ma
ss
Gro
ce
ry
Ch
ain
Co
nv
.
Clu
b
Ma
ss
Gro
ce
ry
Ch
ain
Co
nv
.
Clu
b
Ma
ss
Gro
ce
ry
Ch
ain
Co
nv
.
Clu
b
Ma
ss
Gro
ce
ry
Ch
ain
Co
nv
.
20%
25%
30%
35%
40%
45%
50%
55%
PrivateLabel
(Premium)PrivateLabel(Value)
Artificial
ValuesSe
e
Notes
CO
MP
ETIT
IVE L
AN
DS
CA
PE
Club Stores
MassMerchandisers
Grocery Stores
ChainDrugstores
ConvenienceStores
Mar
gin
as
a P
erce
nt
of
Pri
ce t
o R
etai
lers
ADVERTISING MEDIUMS
Television
Co-op Adv.
Website
Mobile
Social Media
Pampers
Huggies
Earth’s Best
Private Label
CO
MP
ETIT
IVE L
AN
DS
CA
PE
COMPETITOR BRAND POSITIONS
Target Market
Moms 18-45, Income $45K+, high school+ education
Moms 18-45, Income $45K+, high school+ education
Moms 18-45, green conscious, high school+ education
Moms 18-45, Income $25-$65K, high school+ education
Moms 18-45, Income less than $55K
Key Benefit
Ultra absorbent core for outstanding leakage protection
Trusted leakage protection of the Leak Lock® System
Provides superior leakage protection and is Earth-friendly
Great for overnight use1
Maximum value for comfort and fit2
RTB
Has 3 layers of absorbency for 12 hours of protection
SnugFit waistband, unique tabs, unique layer to lock wetness away
Contains renewably, naturally absorbent materials, such as corn and wheat starch and is chlorine-free
Stretchable grip tabs, extra absorbent core, and fun safari design1
Adjustable grip tabs and soft waist2
PrivateLabel
(Premium)
PrivateLabel(Value)Baby Dry Snug & Dry
CO
MP
ETIT
IVE L
AN
DS
CA
PE
COMPETITOR MARKET SHARES
Pampers37%
Huggies32%
Earth's Best14%
Private Label12%
Other5%
Artificial
ValuesSe
e
Notes
CO
MP
ETIT
IVE L
AN
DS
CA
PE
BARRIERS TO ENTRY
Possible barriers to entry could include:
Strong loyalty to other brands will make it difficult for people to try the new diaper
Insufficient demand from the target market
Insufficient marketing/advertising funds may make it difficult to penetrate the market as far and as deeply as desired
CO
MP
ETIT
IVE L
AN
DS
CA
PE
THE RECOMMENDATI
ON
THE OBJECTIVE REVISITEDTo assess the landscape for and
viability of a successful launch of the Luvs® brand into the
Canadian market.
“Just One More”
The Luvs® Direction:Just One More Country
By launching into Canada, the Luvs® brand will be able to support the company’s strategy and goal.
TH
E R
EC
OM
MEN
DATIO
N
LAUNCH OR NOT?
No. Do not launch at this time.
The cost to successfully penetrate the Canadian market is too high to provide a reasonable return on investment.
My recommendation is to wait for conditions to become more favorable.
TH
E R
EC
OM
MEN
DATIO
N
However, had conditions been different… (next slide)
BRAND LAUNCH(If conditions had been more
favorable to a successful launch, here are a few of the ideas I had.)
GEOGRAPHIC LOCATIONS
TH
E L
AU
NC
H
LAUNCH: PHASE 1
Toronoto
16%
Montreal11%
Ot-tawa3%
Canadian Popu-lation
Quebec, Hamilton, London, Kitchener,
Windsor, St. Catherines-Niagara,
Oshawa11%
Population Map of Canada
Data obtained from the 2006 Canadian Census and Encyclopedia Britannica (ed.
2002)
TH
E L
AU
NC
H
Target Metropolitan Areas
Phase 1 Population Reach (month 0)
13,241,115 people
41.9%
LAUNCH: PHASE 2
Phase 1
42%
Vancouver7%
Calgary3%
Edmonton3%
Win-nipeg
2%
Hali-fax,
Victo-ria,
Saskatoon3%
Canadian Popu-lation
Phase 2 Population Reach (month 6)
5,862,373 people 18.7%
Population Map of Canada
TH
E L
AU
NC
H
Data obtained from the 2006 Canadian Census and Encyclopedia Britannica (ed.
2002)
Target Metropolitan Areas
LAUNCH: PHASE 3
Phase 1 To-
tal42%
Phase 2 Total19%
Popu-lations
Be-tween 30K-200K
People17%
Canadian Popu-lation
Phase 3 Population Reach (month 9)
5,481,174 people 17.3%
TH
E L
AU
NC
H
Population Map of Canada
Data obtained from the 2006 Canadian Census and Encyclopedia Britannica (ed.
2002)
Target Metropolitan Areas
PRODUCT LINE-UP
TH
E L
AU
NC
H
PRODUCT LINE-UP
Product Size Counts Product Size Count
s
N 38168 4 31
96
1 50152 5 27
80
2 42108 6 23
66
3 36108
TubRefills
7277
TH
E L
AU
NC
H
MARKETING
TH
E L
AU
NC
H
PRICING (COST PER DIAPER)
Walmart $0.21 $0.21 $0.21 $0.14 $0.11 $0.17
Target $0.21 $0.25 $0.21 $0.15 $0.12 $0.17
Walgreens $0.31 $0.31 $0.31 $0.21 $0.20 $0.20
Smiths $0.22 $0.22 $0.22 $0.14 $0.13 $0.22
Babies R Us
$0.27 $0.30 $0.30 $0.20 $0.17 $0.21
PrivateLabel
(Premium)
PrivateLabel(Value)
Su
ggest
ed P
rice
s
TH
E L
AU
NC
H
Artificial
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e
Notes
HOSPITAL PARTNERSHIP Partner with Hospital networks
Distribute newborn baby kits free to moms Kit includes things such as a starter
pack of newborn diapers, wipes, board book, coupons, etc.
Include offer for one free pack of diapers after they register on the new Luvs® Canada website
Extend further promotional offers via email at pre-determined intervals matching the baby’s development.
TH
E L
AU
NC
H
OTHER PROMOTIONAL IDEAS
Find an event to sponsor that takes place nationally that corresponds with the brand.
Provide educational and training programs for mothers.
Partnerships with local/regional maternity organizations.
TH
E L
AU
NC
H
DISTRIBUTION
Club Stores
Mass Merchandisers
Grocery Stores
Chain Drugstores
Convenience Stores
TH
E L
AU
NC
H
CREATIVE DIRECTION
Use the brand position as the guiding force behind all advertisements.Furthermore, create commercials and ads
that evoke an emotional attachment to the brand
Talent and Resources of:
TH
E L
AU
NC
H
POSITIONING STATEMENT REVISITED
From newborn babies to toddlers, Luvs® Ultra Leakguards help lock away wetness
and stop leaks, day and night. That’s because Luvs® Ultra Leakguards have an
ultra absorbent core, stretch sides, and leak barrier leg gathers.
TH
E L
AU
NC
H
MARKETING SPEND
Medium Percentage
Television 45%
Print 20%
Co-op 3%
Social Media 10%
Promotions 20%
Mobile 2%Videos Luvs AppPandoraBloom
TH
E L
AU
NC
H
EXPECTED RESULTS
LONG-TERM GROWTH IN CANADA
20122013
20142015
20162017
20182019
20202025
2030
0
5
10
15
20
25
30
Projected Growth
High-Growth
Anticipated
Conserva-tive
Gro
wth
Ra
te (
%)
EX
PEC
TED
RES
ULT
S
……
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ValuesSe
e
Notes
THE END
Aaron FisherMBA, David Eccles School of [email protected]