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RB Clearasil Makeup: Marketing Plan
Clearasil and L'Oreal plan to launch a new line of makeup specifically formulated for acne-prone skin. They will target females aged 25-35. The new brand "Beloved" will provide effective cosmetics that cover acne without clogging pores. It will position itself as the only brand that both treats and covers acne. Extensive marketing plans include online promotions, makeup contests on social media, and sales through drugstores and the companies' websites. Financial projections estimate the new line will break even within 3 years and grow significantly through expanding its target market and distribution channels.
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RB Clearasil Makeup: Marketing Plan
- 1. Reckitt Benckiser Clearasil Makeup MarketingStrategy and Planning (MKT 337) Instructor Anthony DeLeon Fall 2013 Piyanuch Kangwankijwanich (Tu)
- 2. Strategic Issue Assessment(SIA) Strategic Alternative Reviews (SAR) Marketing Decisions
- 3. 5C ANALYSIS: COMPANY, COMPETITORS, CUSTOMERS,COLLABORATOR S, & CONTEXT
- 5. COMPANY: RECKITT BENCKISER GoodSales Performance Source: Reckitt Benckiser Group plc. (2012). Annual report and financial statements 2012.
- 6. COMPANY: CLEARASIL PRODUCTS RapidAction Good Smell
- 7. COMPANY: CLEARASIL PRICING AffordablePrice Sources: Clearasil, Clean & Clear, and Neutrogena from Walgreens webpage. Proactiv product bundle from Proactiv webpage.
- 8. COMPANY: CLEARASIL DISTRIBUTION CHANNELS Drugstores Hypermarkets “NoOnline Order” Online Marketplace
- 9. COMPANY: CLEARASIL PROMOTIONS(LATEST) Successful Campaign
- 10. COMPANY: CLEARASIL PROMOTIONS(LATEST) Customers feel fun to Join the contest Share content http://www.lizmarieblog.com/2013/08/clearasil-superfruits-face-wash-review/ Get free samples
- 11. PRIMARY COMPETITORS Target customersare both genders aged 16 – 35 Target customers are Target customers are Female aged 14 – 40 Female aged 12 – 24
- 12.
- 13. PRIMARY COMPETITORS: CLEAN& CLEAR Fast Action + got award from Allure Mass Retail Stores + P.O.P. promotions Photo Contest + be partner with CVS and Glamour magazine
- 14. PRIMARY COMPETITORS: PROACTIV MANY DifferentiateStrategies • Direct Marketing • Money Back Guaranteed • Celebrities Endorsement • Real Testimonials • Product Bundle
- 15.
- 16. SATISFIED CUSTOMERS Majority ofClearasil audiences are teenagers aged 18-24 who live in L.A. Good participation on
- 17. UNSATISFIED CUSTOMERS Bad comments Harshchemicals • Bad advertising campaigns • Too young for me
- 18. MAJOR CUSTOMERS Source: Clearasilcase study. Reckitt Benckiser (2008) Only one loyal customer segmentation, “male aged 13 – 17”
- 19. WHAT CONSUMERS WANT? Makeupthat will not block pores Acne preventions for adults Eco-friendly cosmetic products
- 20. COLABORATORS Search this Inconsistent Price On theClearasil‟s website
- 21. CONTEXT: ECONOMY ®ULATIONS Economic is a good !?! Because consumers switch to quality products with reasonable prices Quality means products that passed the government regulations
- 22.
- 23. Internal Assessment Weaknesses Strengths • • • • • • • • • Effective, yetaffordable Good brand recognition Strong finance support Strong R&D Harsh chemicals Immature positiong Similar to Clean & Clear No online order No strategic partnership SWOT Opportunities • • • • Acne in adults Green trends Reasonable prices needed Non-clogged up makeup Threats • Abundant of substitute products • Strict regulations External Assessment
- 24.
- 25. OPTION1: Acquire maturepositioning • Attract new customers (older generations) Why? • Maintain their existing customers (not to change brand when they grow older) How? • Execute slice of life advertising • Endorse celebrities
- 27. OPTION2: Focus onconsumer‟s convenience Why? • Encourage customers to repeat purchase • How? • • • Launch smaller packaging & Travel kits Reduce price & Push strategy Sell products online Create mobile apps
- 29. OPTION3: Launch newmakeup product lines Why? • Expand the target markets • No brands stand for “makeup for acne people” • Cooperate with L‟Oreal How? • Launch sub-brand with full foundation makeups • Acquire “makeup for acne people” position
- 31.
- 32. STRATEGY EVALUATION DIMENSION Criteria Option1 Option 2 Option 3 Finance Expensive Neutral Expensive Time Long time Short time Long time Competition Intense Very intense Lower Market Size Increasing Shrinking Increasing Market Growth Growing Stable Growing
- 33. SAR EVALUATION CRITERIA Levelof effort to achieve each goal 1 = „a little‟ 2 = „moderate‟ 3 = „much‟
- 34. PREFERRED ALTERNATIVE OPTION 3:Launch new makeup product lines How to make this plan better • Transfer knowledge to shorten R&D time and Cost • Cooperate to shorten the product introduction stage • Establish superior value, „2 in 1‟ product lines both „cure‟ and „cover‟ acne
- 35. POSITIONING STATEMENT For femalesaged 25-35 who have acne problems and need non comedogenic makeup, Clearasil and L‟Oreal, the U.S. leader companies, provide an effective cosmetic that would not block your pores and generate skin irritation. Unlike other competitors, our products are aimed to heal your skin problems and boost up your confidence.
- 36.
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- 39. • Reach thebreak-even point at the end of year 3 • Expand business to NYC, Chicago, Texas • Grow 30% in the 1st year and 10% in two consecutive years • Achieve 30% of total sales from online, events & roadshows 70% of total sales from drugstores & hypermarkets • Attain more strategic partners • Acquire 2nd place in the U.S. acne treatment market in 5 yrs • Gain attention and be buzzed among consumers and media • Be recognized for “Makeup for Acne Consumers”
- 40. MARKETING MIX: PRODUCT,PRICE, PLACE,PROM OTON, PEOPLE, PROCESS, & PHISICAL EVIDENCE
- 41. PRODUCT: BRANDING Brand Name Ca(Clearasil) + Ra (L‟Oreal) = “Beloved” Brand Identity • Simply font & Clean design = an ease-of-use image • Leaf = Natural cosmetic
- 42.
- 43. PRODUCT: THREE ELEMENTS Augmentedvalues Actual performances good aroma Core benefitscompact cover & cure acne easy to use medical substances 24/7 Hotlines recyclable natural ingredients laboratory research 30-days money back guarantee
- 44. PRODUCTS Skin tone Main sources:Benzoyl peroxide, Sulfur, Resorcinol-A, Triclosan & Salicylic acid Primer Green tea reduces redness Lemon reduces scars Foundatio n Cucumber moistures skin + SPF30 Concealer Foundatio n Aloe Vera Powder minimizes pimples Indian clay kills bacteria Loose Powder Rose absorbs oil
- 45.
- 47.
- 48. WHOLESALES DISTRIBUTIONS Product testers Eye-levelshelf P.O.P. promotions
- 49. PROMOTIONS: ONLINE VSON-GROUND
- 50. A.I.D.A. MODEL VSPURCHASING DECISION PROCESSES AWARENESS INTEREST DESIRE ACTION RETENTION NEED SEARCH EVALUATIO N PURCHASE REPURCHAS E
- 51. STAGE 1: CreateAwareness by touchpoints bombard
- 52. STAGE 2: Increaseinterests by using bloggers 3 1 Autograph event Send gift set 2 Sharing on social media
- 53. STAGE 3: PURSUADEBY PROMOTING SALES & SERVICES Encourage consumers to try Sign up & get free samples Free shipping with minimum purchase Sales forces in Beauty Assistant character
- 54. STEP 4: Call-to-Actionby makeup contest 1 2 Record makeup video Share on Social media Using Cara 3 Most viewed is The winner 4 Advertorial & CSR
- 55. STEP 5: Maintaincustomers by keep impressing them Sponsor customers‟ special occasions Get rid of acne mobile app Open-house day for fans Sales booth
- 56.
- 57.
- 58. PHYSICAL EVIDENCE Thank youcustomers who share their stories on Cara‟s media
- 59.
- 60. 1. Number ofprospect customers: SEO, fans on social media, number of sharing content, and number of participants in events 2. Status of existing customers: Transaction online and receipts 3. Return On Marketing Investment (ROMI): Actual sales VS Sale forecast Brand awareness and recognition
- 61.
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- 63.
- 65. COSTS OF GOODSOLD
- 66. CONTINGENCY PLAN What ifthe plan does not work? After year 3, Cara should do cost-benefit research. Stop the plan if it does not worth for investing Or, if still have chance to rise up the sales, Think more about Alternative solution 1 and 2.
- 67. REFERRENCES • Acne: Productlines, Cosmetic for acne prone skin, Men’s skin care, & Why Neutrogena?. Neutrogena webpage. Retrieved from http://www.neutrogena.com/ • Annual report & proxy statements: 2012 Annual report. Johnson & Johnson webpage. Retrieved from http://www.investor.jnj.com/annual-reports.cfm • Bankson, C. (2010, December 15). Acne foundation routine flawless skin (full coverage tutorial) cystic & scaring diamondandheels14. Retrieved from http://www.youtube.com/watch?v=ex33wtqnNz8&feature=c4-overviewvl&list=PL79EC6E2F612D7634. • Broadcast yourselfie: How teens use social media and why it matters to you. (2013, August 13). Brainsolis. Retrived from http://www.briansolis.com/2013/08/broadcast-yourselfie-howteens-use- social-media-and-why-it-matters-to-you/ • Clean & Clear absorbing sheets. Clean & Clear webpage. Retrieved from http://www.cleanandclear.com/products/blotting-papers/clean-clear-oil-absorbing-sheets • Clean & Clear, Clearasil, and Neutrogena prices. Walgreens webpage. Retrieved from http://www.walgreens.com • Clearasil. (n.d.). Retrieved from http://www.mbaskool.com/brandguide/fmcg/2376clearasil.html • Clearasil case study. (2008). Reckitt Benckiser. Retrieved from http://www.rb.com/careers/sample-case-studies
- 68. REFERRENCES • • • • • • • • • • • Clearasil official website.Retrieved from www.clearasil.us Clearasil US Facebook. Retrieved from https://www.facebook.com/clearasilUS Clearasil Youtube. Retrieved from http://www.youtube.com/user/clearasil Combs, C. (2013, October 7). Clearasil US Facebook: Recent posts by others. Retrieved from https://www.facebook.com/clearasilUS David, R. (2011). Rethink the marketing funnel. The network is your customer. Yale University Press. Retrieved from www.davidrogers.biz Experian Information Solutions, Inc. (2013, August ). Teen and tween beauty and personal care consumer-US: Reasons for using beauty and personal care products & Personal care product usage-Girls. Mintel. Euromonitor International. (2013, April). Beauty and personal care: Social media in beauty and personal care. Global Market Information Database. Euromonitor International. (2006, September 28). Biomaterials shape up acne treatments in the US. Global Market Information Database. Euromonitor International. (2011. March). Value perceptions in skin care. Global Market Information Database. Euromonitor International: Strategy briefing. (2011, February). Make way for generation Z: Marketing to today’s tweens and teens. Global Market Information Database. Global Data. (2012, September 5). Reckitt Benckiser Group Plc: Financial and strategic analysis review.
- 69. REFERRENCES • Help yourteen get a handle on their spending. Paypal student account. Paypal website. Retrieved from https://www.paypal.co/us/webapps/mpp/student-accounts • Kotowski, K., Lemley, A. T., Nicholson, A., Plocek, L., & Reid, K. (n.d.). Stridex advertising strategy. Retrieved from http://www.docstoc.com/docs/31095088/Stridex-AdvertisingStrategy • Makeup. Retrieved from http://www.clinique.com/products/1599/Makeup/Foundations/index.tmpl • Market Line. (2013, March 26). Company profile: Reckitt Benckiser group plc. Business Source Complete. • Mintel. (2013, May).Facial skincare-US: Interest in facial skincare-Forms, Retail channels & Social Media. • Mintel. (2013, August). Teen and tween beauty and personal care consumer-US: Facial makeup usage-Girls, Leading brands, Marketing strategies, & Purchase Decision Maker-Girls. • Milemny, N. (2013, February 4). Foundation routine for severe acne (part one). Retrieved from http://www.youtube.com/watch?v=b1OllUVt36k • Order now: Select a system that works for you. Proactiv webpage. Retrieved from https://www.proactiv.com/on/demandware.store/Sites-Proactiv-Site/default/COCartAddProduct?pid=B7H6D3 • Panteva, N. (2013, January). Cosmeceutical skincare production in the US. IBISWorld Industry Report OD4208. • Phillips, J. (2013, August). Cosmetic & beauty products manufacturing in the US. IBISWorld Industry Report 32562.
- 70. REFERRENCES • Poggi, J.(2013, February 26). Nickelodeon targets 'post-millennials' in upfront: Children's Net Moves Beyond TV, Rolls Out App Along With New Shows. Retrieved from http://adage.com/article/special-report-tv-upfront/nickelodeon-targets-post-millennialsupfront/240045/ • Product line, & Win the day. (2013). Clearasil US webpage. Retrieved from http://www.clearasil.us/ • Rapini, Ronald P.; Bolognia, Jean L.; Jorizzo, Joseph L. (2007). Dermatology: 2-Volume Set. St. Louis: Mosby. p. 1371. ISBN 1-4160-2999-0. • Reckitt Benckiser Group plc. (2012). Annual report and financial statements 2012. Retrieved from http://www.rb.com/investors-media/investor-information • Romanowski, S. (2013, May). Infographic overview: Facial skincare. Mintel database. • Sharma, T. (n.d.). Clearasil. Retrieved from http://skincare.lovetoknow.com/Clearasil • Son, A. (2012, December). Acne treatment manufacturing OTC in the US. IBISWorld industry report OD4125. • The foundation of female millennials’ makeup habits. Lab42 website. Retrieved from http://blog.lab42.com/wp-content/uploads/2013/05/Millennials-Makeup-InfographicFINAL1.png
- 71. REFERRENCES Todoros, O. (2012,April 26). My photo albums is a free photography app that’s sure to surprise you! Phpt cruncher website. Retrieved from http://photocruncher.com/myphoto-albums-is-afree-photography-app- thats-sure-to-surprise-you/ Trends & data. Online retail sales growth, U.S. e-commerce sales: 2011-2016, & U.S. mobile commerce sales via smartphone, 2012-2017. Retrieved from http://www.internetretailer.com/trends/sales/ U.S. Food and Drug Administration. (2013, August 2). FDA authority over cosmetics. Retrieved from http://www.fda.gov/Cosmetics/GuidanceComplianceRegulatoryInformation/ucm074162.htm# What_does_the_law Young, L. (n.d.). The women of social media report – digital women influencer study. Women of Google+. Retrieved from http://www.womenofgplus.com/2013/the-women-of-social-mediareport
Editor's Notes
- #5 According to the main website of Reckitt Benckiser (RB), www.rb.com/home, Reckitt Benckiser Group is one of the world largest consumer product manufacturers. The corporation operates over 60 companies in almost 200 countries. Its product categories comprise household, health, and personal care. OneSource (2013) reports that the company’s key brands include Clearasil, Durex, Gaviscon, Mucinex, Nurofen, Scholl, Strepsils, Airborne, MegaRed, Move Free, Bang, Dettol, Finish, Harpic, Lysol, Mortein, Veet Air Wick, Calgon, Vanish, Woolite, and French’s.
- #6 According to the 2013 Reckitt Benckiser annual report, the company had been constantly grown. The total revenue in 2012 was £9,567 million, which grew 5% from 2011. The adjusted operating profit in 2012 was £2,570 million, left dividend per share at £134.
- #7 Clearasil product lines are based on customers’ usage benefits. Clearasil Ultra products are aimed at curing acne rapidly, while Clearasil Daily Clear products are designed to prevent acne break outs.
- #8 Leader brands in the U.S. acne treatment industry use competitive pricing not only to attract mass markets, but also to maintain existing customers, especially teenagers who are price sensitive.
- #9 Clearasil does not sell product directly to consumers. It relies heavily on pharmacies, drugstores, and mass merchandisers, including Walgreens, Walmart, Kmart, CVS, and Target.
- #10 “Win the Day,” a photo competition, is the latest communication campaign of Clearasil that uses social media including Facebook, Twitter, and Instagram as a tool to create engagement with their teenager customers. Clearasil will set a photo contest topic and announce through its social media every week starting from September 23 to November 15, 2013. Then, Clearasil fans can upload their photos under the weekly topic either on Clearasil Facebook, Twitter, or Instagram. At the end of each week, Clearasil will do a sweepstakes to find a winner. The winner will receive a special gift valued at $100.
- #11 “Win the Day,” a photo competition, is the latest communication campaign of Clearasil that uses social media including Facebook, Twitter, and Instagram as a tool to create engagement with their teenager customers. Clearasil will set a photo contest topic and announce through its social media every week starting from September 23 to November 15, 2013. Then, Clearasil fans can upload their photos under the weekly topic either on Clearasil Facebook, Twitter, or Instagram. At the end of each week, Clearasil will do a sweepstakes to find a winner. The winner will receive a special gift valued at $100.
- #12 IBISWorld (2013) reports that the revenue of the U.S. acne treatment manufacturing OTC in 2012 was $2.3 billion. The industry grew 2.4% and left the profits to manufacturers at $337.6 million. Among 53 companies in the industry, the top three companies are Johnson & Johnson with 28.8% of the market share, Guthy-Renker LLC with 24.6%, and Clearasil of the Reckitt Benckiser PLC with 14.7% respectively. In 2013 – 2017, the industry was still expected to grow at 3.1%.
- #13 Neutrogena focuses on the brand reliability, so its tagline is “#1 dermatologist recommended.” The primary target of Neutrogena is females aged 14-40 (Clearasil case study, 2008). Neutrogena product lines based on consumer’s acne problems, usage, and target customers:1. Acne problem: Blackhead Eliminating, Body Clear, Clear Pore, Oil-Free Acne Stress Control, Oil-Free Acne Wash, and Oil-Free Acne Wash Redness2. Product usage: All-in-one Acne Control (fast and easy usage), Complete Acne Therapy system (Product bundle), and Skin Clearing Cosmetic3. Target customer: Neutrogena Men4.Product lines that directly compete with Clearasil:Oil-Free Acne Wash Pink Grapefruit VS Clearasil Refreshing Super Fruit,Rapid Clear VS Clearasil UltraNeutrogena uses female celebrities with different races as brand ambassadors to raise likability to the brand. More importantly, to reinforce the brand credibility, Neutrogena provides useful recommendations from dermatologists on its media.
- #14 J&J intends to position Clean & Clear to compete directly with Clearasil because the brand name, price points, distribution channels, and marketing communication campaigns are greatly similar to Clearasil. The Clean & Clear Advantage acne Spot won the best Zit Zapper award from Allure magazine in 2012. This product has the same value proposition as Clearasil, “to reduce pimples in just four hours.”“Instagram your skin to win!” was co-promotion by Clean & Clear and Glamour magazine. The campaign uses the same tactic as Clearasil by encouraging customers to take pictures with either Clean & Clear or Neutrogena products and broadcast through Glamour’s social media. The winner will get a $100 gift cards from Clean & Clear. In addition, Clean & Clear uses strategic partnerships with large distributors like CVS and Target to give free sample aiming to boost brand experience.
- #15 IBISWorld (2013) stated that Proactiv has grown rapidly due to modern technology, fast acne skin recovering, and simple using steps. The brand employs celebrities as its brand endorsement to enhance brand awareness and brand credibility. With consistency of having both men and women characters in commercials, Proactiv’s brand personality seems to be for unisex rather than competitors in the U.S. acne treatment industry. For example, Proactive transfers a popularity of Adam Levine to the brand. This superstar from the nation’s most hit TV show, the Voice USA, is the latest male brand ambassador for Proactiv+.However, with the product bundle strategy, Proactiv’s average price is higher than Neutrogena, Clean & Clear, and Clearasil.
- #16 To look the competition in a bigger scope, acne treatments are not the only source that can cure acne problems. With advanced technologies and developed research, products and services involving antibiotic medicine, prescription medicine, facial chemical treatments, natural remedies, acupuncture, and medical lasers, are created to target consumers who have acne skin. An increase of substituted products could lower revenue for Clearasil.
- #17 IBISWorld (2013) claimed that Clearasil’s target customers are teenagers aged 11-17, and young adults aged 18-24. The U.S. Clearasil’s Facebook supports the finding by showing that major fans are young adults who live in Los Angeles.
- #18 From comments on social media and personal blogs Clearasil is TOO STRONG for sensitive acne skin.Brittany prefers Neutrogena to Clearasil because she does not trust Clearasil and does not like its spam advertisements.She also gave an example of how Neutrogena executed their ads. Neutrogena always use gorgeous mature celebrities as its brand spokespeople. Therefore, the personalities of brand ambassadors reflect the brand’s personalities.
- #19 The Clearasil case study (2008) informed that although Clearasil had the highest brand awareness of acne treatments among teen consumers, only males aged 13-17 used Clearasil regularly. Neutrogena, on the other hand, was frequently used by males aged 18-34 and females aged 25-34 because they perceived that Neutrogena was suitable for everyday use, an efficient, and trustworthy brand (TNS Usage Panel, 2007)
- #20 For girls, makeup is often used to conceal acne problems. Makeup gurus and bloggers recommended M.A.C. Cosmetic, Bobbi Brown, Laura Mercier, Nars, and other counter (OTC) brands because their high-coverage performance and variety of shades. However, these brands contain ingredients that cause pore blockage and skin irritation. Even consumers who use acne treatments before applying foundation and/or concealer, still have acne problems that can’t be really healed. Conversely, in some cases, their acne problems become even worse.Albeit some girls know that makeup causes more serve acne, they still use it because they feel insecure with their bare faces. They don’t want to be discriminated against by others not having normal skin. For example, NayeliMilemny, a YouTube star, knows that M.A.C cosmetics will adversely affect her skin, yet she insists on using it. She doesn’t take any recommendation from her friends who have normal skin because they will never understand her anxious feeling. She wants to feel as pretty as other girls. Euronomitor (2013) and Mintel (2013) reinforced the fact that acne is not limited to only teenagers. Acne can happen to both males and females at any age. Consumers switch products because they consider the brands are not for their age. This could be a reason why males change from Clearasil to Neutrogena when they get older. Like Clearasil, females change from Clean & Clear to Neutrogena.Apart from acne issues, IBISWorld (2013) reported that as a result of rising environmental concerns, several companies have changed their production process, such as minimizing waste, reusing post-consumer plastic, and utilizing recycled paper. Corresponding to IBISWorld, Mintel (2013) indicated that 51% of consumers prefer their cosmetic products to be recycled.
- #21 RB supplies Clearasil through mass distributors and nationwide retailers likeWalgreens, CVS Pharmacy, Target, Walmart, and Kmart. Nonetheless, while Clean & Clear is co-promoting the brand with CVS, Target, Allure magazine, and Glamour magazine, Clearasil doesn’t have any partnership strategies. By having less product presence at points of purchase, Clearasil sales could fall which leads to a shrinking market share. For online marketplace, Clearasil links purchasing buttons on its official website to its partner retailers like Amazon, Walmart, etc. However, pricing of each distributor is highly fragmented which might create confusion to customers.
- #22 Consumers with low income can’t afford OTC brands, prescription medicines, and medical lasers, so they are likely to switch brands by experiencing lower price brands if they notice an equally effective performance (IBISWorld, 2013). Another external factor that affects the industry is the government regulations. The US Food and Administration (FDA) is the most critical department controlling the manufacturing, labeling, and marketing. For example, Benzoyl peroxide is limited between 2.5%-10%, Salicylic acid 0.5%-2%, Sulfer 3%-10%, and Resorcinol 2% respectively. Others organizations that could create threats to Clearasil are:Occupation Safety and Health Administration (OSHA), which protects the employee’s rights and inspects hazard chemicals from laboratoryEnvironmental Protection Agency (EPA), which confines contagious waste.US Department of Agriculture (USDA), which protects animal welfare.
- #26 Clearasil should reposition the brand image to have a maturity to attract new customers and keep their existing customers, so they will not to change brand when they grow older.Current problem of Clearasil is that the brand lacks credibility and does not have clear positioning compared to Neutrogena. The reason why teenagers buy Clearasil is because it’s affordable. Due to Neutrogena’s tagline as #1 dermatologists recommended, consumers perceive that Neutrogena is the best. Consequently, they switch from Clearasil to Neutrogena when they have a higher income. Moreover, Clearasil has launched a marketing campaign that encourages mothers to record videos and give reasons why they select Clearasil for their children. This reinforces the fact that Clearasil is only for teens. Clearasil should have only one strong campaign that communicates a big message. Commercials can show scenarios of the consumer’s real life, so audiences will feel connected to the brand. The mood and tone of the new advertisement should be cool and calm, not impractical and funny like previous advertisements. Commercials must focus on how the products will solve the customer’s problems Furthermore, to compete with Neutrogena and Proactiv that use celebrities as their spokespeople, Clearasil could employ superstars with elegance and trendy look to generate brand attraction and likability. Clearasil’s brand ambassadors should be young adults and adults of both genders to indicate that the Clearasil’s life cycle is not finished in teen years. For example, Clearasil can hire Robert Pattinson as its young adult character because of his popularity. He would make a big impact on teenagers. Besides, Clearasil could hire Brad Pitt as its adult character to show that the brand is still relevant to consumers even if they grow older.
- #28 Clearasil could reduce the size and lower the price of Clearasil Ultra products a bit to attract price sensitive teenagers. Clearasil could also do a travel size of Clearasil Ultra, so that consumers can take and use on the go. Moreover, according to Mintel (2013), many consumers purchase product bundles because they perceive that each product will support others. As a result of this research, Clearasil can do a bundle of its product lines to allow consumers to experience the whole ranges of Clearasil Ultra at a reasonable price.Clearasil should improve its point of purchase by being a partner with national retail stores to increase its visibility in the consumer’s eyes. The brand could do seasonal promotions to boost sales. For instance, teenagers area about to meet new friends during the back-to-school period or Summer break, so having clear skin is needed in order to boost their self-confidence.Clearasil should have short and simple online processes that provide convenience for consumers as much as possible. Ease of purchase can impress consumers and encourage them to become return customers. Clearasil could use Neutrogena as a standard benchmark. Neutrogena interface is clean and easy to navigate. Customers only have to click a few times to reach the payment page. Neutrogena can also partner with PayPal to provide secure payment methods to its customers.More importantly, Clearasil can generate higher competitive advantages over Neutrogena by developing mobile applications to catch Gen Z’s attention.
- #29 Even though Clearasil is sold in Walmart, Walgreens, CVS, Target, etc., the products are not in good spots. They stand almost at the bottom of the shelf while Clean & Clear and Neutrogena stand at eye-spot levels. Additionally, currently Clean & Clear are doing sale promotions with CVS and Target, while Neutrogena purchases the whole shelf with massive outstanding signage.
- #30 According to the American Academy of dermatology (2010), 40 – 50 million Americans are facing acne skin problems, and 85% of consumers have faced acne problems in their lifetime. For women, acne problems peak at aged 14-17. However, almost 50% of pregnant women have acne problems, and 14% of women are still facing acne problems after aged 40. However, major competitors in the U.S. cosmetic and beauty products industry do not take seriously the idea of producing makeup lines to relief acne problems. IBISWorld reports that key brands in this industry are CoverGirl (Procter & Gamble), L'Oreal, The Body Shop (L'Oreal), Maybelline (L'Oreal), Lancôme (L'Oreal), Estée Lauder, Clinique (Estée Lauder), M*A*C (Estée Lauder), and Revlon. Nevertheless, only Clinique has product lines dedicated to acne consumers. Base on the current market, some brands cross their makeup product lines to acne product lines to reduce consumer’s concerns about the fact that cosmetics could cause an acne. Still, none of these brands actually cure acne.For this reason, having makeup product lines can also enhance an opportunity for Clearasil to expand its target markets to older ages. From the brand standpoint, Clearasil’s target customers are tweens aged 14-17 and teenagers aged 18-24. On the other hand, Neutrogena’s target customers are 14-35. The massive aged gap between 25–35 means higher revenues for Neutrogena because the market size is much bigger. If Clearasil can offer makeup product lines that both reduce and conceal acne problems, the brand not only reinforces its strength, but also jumps into the new market segment that has fewer rivals. Clearasil can gain consumer’s attention and eventually earn higher market share. Nevertheless, since Reckitt Benckiser doesn’t have any makeup product in its portfolio, the company should co-branding with well-known brand like L’Oreal to shorten the product developing research. However, transferring knowledge of these two brands is highly critical. Clearasil and L’Oreal should develop cheeks and foreheads makeup products together because acne problems tend to take place on these areas. Hence, new product lines including primer, foundation, concealer, and powder, must have medical substances, like Benzoyl peroxide, Salicylic acid, Retin-A, and Sulfer to diminish acne problems.Another advantage of combining Clearasil and L’Oreal is to shorten a new product introduction process because these two brands have strong brand awareness and brand recognition. The makeup product lines for acne consumers could reach the growth stage faster. Still, brand extension could create confusion to consumers. It might adversely affect the reputation of Clearasil and L’Oreal if these new product lines don’t work. Therefore, launching a new brand with Clearasil and L’Oreal sponsorship would be better.
- #31 Sophisticated brands offer high prices that range between $60-$200. On the other hand, affordable prices are meant to attract lower income consumers, so the price ranges between $5-$20. Three well-known brands that provide makeup products for acne consumers are Neutrogena, Ettusais (not sold in the U.S. but it could be shipped), and Clinique.
- #33 To have a successful marketing strategy, Clearasil must weigh each of the alternatives based on fundamental marketing criteria including Financial budget: By knowing the costs of this project, executives can do the cost-benefit research to estimate the Return of Investment (ROI.) Developing time: Break-even point matters when companies also have other future projects to invest.Level of competition: Number of competitors and strong brands could be a great barrier for Clearasil to enter each business.Size of market: Reckitt Benckiser should know rough number of potential customers to evaluate future profits.Market growth: Product lifecycle could also demonstrate future profits.Option 1, reposition the brand to be more mature generates a high possibility for Clearasil to retain its customers when they get older. Also, the new position might inspire old customers of Clearasil to rethink that the brand still belongs to them. As mentioned before, both acne in teenagers and adults are increasing, so Clearasil could have greater number of customers. Nevertheless, this strategy might cost money if Clearasil decides to use celebrities as its brand ambassador to create high impact on mass consumers. Moreover, consumers need time to recognize the total new look of the brand. This means Clearasil must continue paying celebrities year after year to keep reinforcing the brand positioning. Although having well-known superstars speaking about the brand creates high attraction to the brand, Neutrogena and Proactiv use this strategy as well. Besides, if celebrities are in a scandal or bad rumors spread about them, the brand personality will be adversely affected.In conclusion, advantages of this option are the large size of target market and high growth market. Conversely, disadvantages of this option are intense competition from two strong brands, Neutrogena and Proactive. Reposition takes a lot of time and budget.Option 2, concentrating on ‘convenience’ value could improve Clearasil’s performances when consumers are making a purchase decision. Launching new small packaging and cooperating with retailers spend less time and budget compare to other two options. Moreover, since both online and mobile e-commerce grew rapidly, Clearasil could have higher visibility and sales if they are doing well.However, many companies intensively compete with others to win over teenagers market. Clearasil must join a price war bidding shelf space with Neutrogena and Clean & Clear. In the online world, the brand has to fight with clutter advertisement from countless websites. In conclusion, the advantages of this option are less cost and short time processes. On the contrary, while teenager market size and market growth are stable, the level of competition is tremendously high, so Clearasil might not see significant profits growth.Option 3, launching makeup product lines could leverage Clearasil to catch female young adults and adults segments. By co-branding with a market leader like L’Oreal, Clearasil could have a chance to introduce the brand to L’Oreal mass customers. Additionally, according to IBISWorld (2013), both the U.S. acne treatment industry and the cosmetic and beauty products manufacturing are expanding. Nonetheless, makeup manufacturers fiercely compete against each other. Companies must spend heavily on R&D to produce innovative products to serve diversity of customer needs and usage behavioral. Although some technology takes a great amount of time on patents registering, copycat products are easily found. Thus, each brand must carefully describe its advance technology to the government. In conclusion, advantages of this option are expanding market size, growing markets, and less competitors. On the other hand, Clearasil must spend time and cost working with L’Oreal.
- #34 Clearasil could rate the company efforts on each alternative to achieve overall business goals. 0 means ‘neutral’, company doesn’t have to put any efforts. 1 means ‘a little’ effort, 2 means ‘moderate effort’, and 3 means ‘much effort’ that Clearasil has to deliver to accomplish both financial and branding goals. Therefore, Clearasil should cut alternatives that have a high score because putting too much effort decrease ROI.
- #35 Launching makeup product lines is the most practical way among three alternative solutions. Therefore, Clearasil should fix each flaw of this strategy. Since both Clearasil and L’Oreal have strong R&D departments, they can share their beauty technology knowledge and support each other on finding better formulas to overcome other competitors. New brand should be offered to prevent a failure of new brand launching. However, having the word by Clearasil and L’Oreal could transfer reliability of these two strong brands to a new brand. To be differentiated from others, the superior value proposition could be a combination between Clearasil’s powerful acne fighter and L’Oreal perfect makeup for every skin type. The unique selling point is ‘2 in 1’ product lines both cure and cover consumer’s acne effectively.
- #38 Clearasil’s new target customers are females aged 17-40 in middle class socioeconomic status who live in big states as California, New York, Texas, Florida, and Illinois. They have high anxiety on acne problems, such as oily skin, large pore, breakouts, redness, and scars. Makeup is a life-saving tool for them because it covers their skin flaws, makes them pretty and be attractive. These girls are addicted to makeup and use it everyday. These girls are likely to be sociable, fun, and friendly, thus they have jobs that require them to work and meet people. For this reason, first impression, like good appearance, is critical and hugely affect to their emotion and careers.They google for the products that won’t harm their sensitive skin and purchase products based on good rating and positive comments. Price is listed in their criteria, but they weigh quality more. They believe makeup artists, bloggers, and social media influencers like YouTube, Pinterest, Instagram, and Tumblr. They also trust people who specialize in the cosmetic industry rather than advertisement from cosmetic brands. Friend recommendation is important when they are seeking information and making a purchase decision.
- #40 Within first three years after launching products, Cara’s total revenues must reach the break-even point by clearing that the first initial debts that Reckitt Benckiser borrows from financial institutions. Therefore, actual net profits will be distributed in terms of dividends to Reckitt Benckiser and L’Oreal’s shareholders as well as stockholders by the end of year 4. Reckitt Benckiser expects Cara’s revenues to grow 30% at the end of year 1, and continue to grow in year 2 and year 3. Revenues from online, events, and roadshows should be 30% of total sales while revenues from wholesalers, drugstores, and hypermarkets should be accounted of 70% of total sales. Within five year, sales of Cara are to push Clearasil to have higher total revenues, and to be in the second place same as Proactiv in the U.S. acne treatment market share. Additionally, Cara will be the leader holding the highest market share in the U.S. makeup for acne consumers industry. Cara aims to gain attention and recognition from Californians and the media. Cara should acquire the “makeup solution for people who have acne problems” position by consumers and the media’s perspectives. Buzz marketing will create demand in other cities. After achieving success in California, Cara is to expand business to New York, Texas, and Chicago respectively, by cooperating with nationwide wholesalers drugstores including CVS, Walgree, Walmart, and Target. Cara will continue a good relationship with amazon.com, drugstores.com, etc. Also, Cara intends to be a partner with medium online retailers
- #42 Brand Name Newly proposed brand name is “Cara” because it sounds like a brand name of Clearasil and L’Oreal. Due to an ease of word spelling and pronouncing, the name of Cara will be recognized quickly. Cara is an Italian word, which means “beloved”, so parents name their daughter with this name. For this reason, Cara matches with brand identity and brand personality of Clearasil’s new brand.Brand IdentityA simply font and clean design are the signature of the Cara logo because they represent an ease-of-use image. During the first launch, the Cara logo will have the Clearasil and L’Oreal brand name at the bottom to transfer consumers’ trust to the new brand. In consumer’s eyes, Clearasil and L’Oreal are chemical cosmetics that might harm your skin’s health and the environment. To improve their images and respond to the green trends of consumers, Cara will be their first natural product line. The leaf signifies natural ingredients that are well-combined with medical substances to enrich customers’ beauty. For the pantone, mint colors are utilized to convey feminine and nature mood and tone.
- #43 Cara is a 28 years-old beautiful botanist who works in a cosmetic lab in L.A. She is smart, optimistic, sociable, and generous. She is passionate about her job because her dream is to help women have a better skin and a beautiful attitude. Her hobbies are sharing her knowledge by writing a blog, posting on Facebook, retweeting on Twitter, taking photos on Instagram, and pinning pictures on Pinterest. She is also a social activist who joins PETA and cruelty free organizationsto ban the use of animals used in experimentation. Cara always wears makeup foundation because it keeps her skin moist and covers her blemishes when she has not had enough rest. Since she knows very well about chemical reactions, her friends always ask how to select cosmetic products to improve their skin. She has fans that follow her on social media and admire her for her talents.
- #44 1.Core benefitsThe key benefits of Cara are to cover as well as cure acne problems.Cara’s point of parity to other brands is a perfect skin covering on redness and scars. Yet, Cara’s point of difference is an effective healing of breakouts. 2. Actual performances Cara consists of both medical chemicals to cure acne and natural ingredients to not only accelerate chemical performances, but also provide a good aroma. More importantly, packaging is compact, easy to use, durable, and recyclable. Cara will be launched in full base makeup products to establish the image of a leader in “makeup for people with acne.”3. Augmented valuesCara offers a 30-days money back guarantee if customers are allergic to the products. Customers can either return the products at the retail stores or ship it back to Cara’s headquarters, then get refunded the full amount of money. Cara’s hotlines are open 24/7 to support customers and online customer services will respond to customers’ emails within 24 hrs. Nevertheless, Clearasil must ensure that Cara won’t exaggerate the benefits. According to Rapini (2007), cosmetics can cause acne skin because some people may be allergic to chemicals. To avoid exaggerated accusations from the FDA, Clearasil should conduct laboratory research to ensure that its new product line is safe for human skin.
- #45 PrimerPrimer is important for a good makeup because it helps skin absorbing a foundation color and enhances makeup to be long-lasting. Since primer is a makeup base, it should have both acne prevention and protection performances. An antibiotic could be a key element because it reduces bacteria as well as inflammations. Cara primer is offered into two colors, green for acne redness and yellow for acne scars. Based on light theory, green can diminish red to orange, which is close to people’s skin. On the other hand, yellow can lighten up brown to beige. Therefore, professional makeup artists use these techniques to disguise blemishes. The same techniques will be applied for Cara primer. Additionally, green tea is added into green primer because it stops bacteria from spreading over and has a fresh smell. Lemon is added into yellow primer because its acid can brighten brown scars.FoundationFoundation helps uneven skin tone look smoother and hides skin flaws completely. Cara foundation liquid incorporates 2% Salicylic acid, which counteracts blackheads, whiteheads, and pore blockage. It comes with a variety of shades to match flawlessly with consumer’s skin. Cucumber extract in Cara foundation keeps skin moisturized and looking healthy. Sunscreen with SPF30 inside Cara foundation also works as a UV protection for sensitive skin. The pumping bottle offers an ease of use and prevents spill-over accidents. ConcealerConcealer is a skin correction point indicator. It targets specifically to the small blemish areas on consumer’s faces. Aloe Vera cream at an outer perimeter relieves bacteria infection, but it still keeps skin moisture. Meanwhile concealer inside a perimeter consists of Benzoyl peroxide to dry the swollen pimples. Silky condensed cream conceals acne problems in just a few touches. A lipstick-like design is also compact and convenient to carry and use on the go.Foundation powderFoundation powder is meant for consumers who have mild to moderate acne problems and don’t have time to apply foundation. The condense powder in this compact cassette camouflages acne skin at the first pad. The beige compress powder contains Indian clay to kill bacteria on skin surface, while white area is a Sulfer powder to absorb oil and block clogged pores. Loose powderLoose powder is for consumers who need a light makeup or a mild level of skin coverage. It could be used alone, without any other makeup, or be used after consumers apply foundation to keep color long-lasting. It could be used during the day to reduce oily skin, so Sulfer is a main ingredient to absorb oil. Rose is another feature that could both absorb oil and deliver a good smell. The brush design saves customer’s money and time needed to find a brush to use with loose powder. Users can twist the silver part to unleash the powder on the brush.
- #46 Cara will utilize Value-based pricing, which means the price will be set based on consumer’s needs and expectations. Since Neutrogena is a value brand in most consumers’ eyes, to penetrate the mass market, Cara will adopt a competitive pricing strategy by using Neutrogena’s prices as a benchmark. While an average price of Neutrogena is around $13, Cara offers it at $16. Cara’s price is a little bit higher than Neutrogena to represent a superior quality image. Moreover, $3 is a just noticeable difference in price, which means that most consumers view $3 as just a little bit more expensive, and they still can afford Cara products. Based on customers’ behaviors, they are willing to pay a higher price if the products really work. The higher price strategy could lead to higher revenues. Due to the fact that revenues minus costs equal profits, Cara should minimize costs as much as possible to have high profits. Cara may set a percentage markup of at least 300% from the product costs. To clarify this, Cara average price is $16, so the product costs should not be over $4. Costs and Expenses will be further explained under the financial decision.From the makeup for acne consumers pricing map, not many brands offer a full range of makeup for acne consumers. Also, no makeup brands offers a price range of $15-$20, so Cara can take this market.
- #48 This is an example of Cara’s landing page that describes the brand identity, highlights key products, and provides content based on consumer purchasing behaviors. For instance, Why us? and the Testimonial page details the benefits of Cara. Promotion and Free shipping are to capture price sensitive consumers. The call center, customer service’s email, and social media are to interact with consumers and engage with them in the long run.
- #49 While online is a fascinated channel to educate and engage with consumers, in-store selling is necessary for makeup products because women need to have a color testing to find the right shade for their skin. Additionally, smell and texture are product attributes that women prefer differently. After they satisfy with the product performances, they might repurchase via online channels. To encourage consumers to try Cara, product testers should be provided at the shelves. Clearasil together with L’Oreal should push Cara to their current partners like CVS, Walmart, Walgreen, and Target because target customers shop here. These wholesalers gain consumer’s trust because they are easy to find and have countless affordable products. Cara product should be placed in the eye-level makeup shelves next to L’Oreal for ease of notice. Consumers will know that Cara is a sub-brand of L’Oreal and Clearasil. They might transfer brand likability and brand familiarity from L’Oreal and Clearasil to Cara. To promote Cara during the launch period, Clearasil and L’Oreal could do a coupon promotion with wholesalers. For example, offering discounts when customers purchase Clearasil and L’Oreal products at least $20 worth with membership cards. Doing so, Clearasil and L’Oreal can boost sales of current products while CVS, Walmart, Walgreen, and Target stimulate their customers to repeat purchase at their stores.
- #50 A decade ago, companies created awareness about their products by buying commercials on traditional media like TV, radio, newspaper, and magazines. However, with the advanced Internet technology in present days, consumers are likely to know new brands from search engines and recommendations on social media. In addition, using only one or two communication tools, like advertising and public relations, are not enough to highlight the brands in a clutter context. Integrated Marketing Communications (IMC) can empower Clearasil’s brand share of voice better than using a single communication tactic. Cara should execute online and on-ground communications in parallel to have efficient results most. To relate Cara’s benefits to consumer’s insights, the campaign is named “Confidently unwrap your face with natural remedies.” Clearasil needs to explain that Cara is a tool to heighten acne consumers’ self-esteem. The communication tactic is to spread Word of Mouth (WOM) because women tend to search, purchase, and review products by recommendations unlike men. According to Young, L. (n.d.), women spend around two hours on social media daily and 19% of them share founded contents on Facebook and Twitter. Integrated Marketing Communications plans of Cara are:
- #52 Step 1:Create awareness by placing products around target customer’s touchpointsOnline media:Adwords, AdSense, and AdMob advertising of Google, are to support new product searching. Keywords will be relate to “acne” and “makeup.”Examples of keywords are makeup for acne, acne makeup, acne cosmetic, cosmetic acne, non comedogenic makeup, acne natural treatment, and so forth. On-ground mediaPOP Sales promotions, such as “New”and “Hot” tags at product shelves in CVS, Walgreen, Walmart, Target, could catch consumers’ attention.Direct messages through database informs Clearasil and L’Oreal customers about new sub-brand launching. Media are emails, SMS, and postcards. To increase brand loyalty, current customers will get a free trial gift set.
- #53 Step 2:Increase interests by using influencers, bloggersOnline: PR brand image by referring positive reviews of users and real successful stories of testimonials enhance the brand credibility. Because bloggers are powerful influencers for makeup lovers, Cara should ask famous bloggers to film themselves talking about the product impression, and share videos to their social media. On-ground: Launching new product events in traffic department stores buzz the Cara news. Cara can ask bloggers to demonstrate makeup tutorial on stages. Fans who join the event will get free small samples of Cara with blogger’s autograph as an incentive.
- #54 Step 3:Persuade consumers to buy with special sale promotions and servicesOnline:Implementing sale promotion on Cara’s website may encourage consumers to try products. Examples of promotions are first-time free trial or discounts, free shipping with $25 minimum purchase (before tax), and full money back within 30-days return.On-ground: Hiring sale forces to sell products at drugstores can boost up Cara sales. Skillful salespeople must be able to explain product ingredients, makeup techniques, and current P.O.P. promotions. They will get 3% commission from total sales.
- #55 Step 4:Call-to-action by creating inspirations from makeup contestOnline:Makeup contest for acne consumers stimulate makeup lovers to experience the products. Interactive media allows candidates to post their tutorial videos on Cara’s YouTube. Within 3-months competition, the most viewed video wins. The winner will get a makeup course at L’Oreal professional academy, and be the first Cara brand ambassador with guaranteed annual income at least $80,000. Cause marketing also be adopted by donating $1 for one product sold to the Earth Day non-profit organization.On-ground:Sending press release to promote the contest to high circulations women magazine will raise Cara’s visibility in consumer’s eyes. The winner will be in Cara advertorial. Soft selling and tie-in cause marketing will leverage the brand image.Advertorial will be sent to health, women’s lifestyle, and makeup magazines, such as Health, Natural Health, Women’s Health, Instyle, Glamour, Cosmopolitan, Marie Claire, Woman, Organic Beauty, and Allure.
- #56 Step 5:Maintain customers by impressing themOnlineSend email and SMS to customers who registered as a member at Cara’s website and events will build long-term relationship. However, Cara should not spam customers. The brand can occasionally send email when it has to announce new products or celebrate customer’s birthday with special discount. Mobile application, like camera and photo edition, encourages customers to have fun and have positive feeling for the brand. Cara can tie-in product benefits while consumers are using app. For example, when consumers saved their edited pictures, Cara can inform which products can help customer’s problems. Cara can also have acne tips, so that consumers can read and practice. The faster customers are cured from acne, the more positive reputation Cara will achieve. On-ground:Open house day that invites Cara’s social media fans and famous bloggers to visit Cara’s laboratory can generate great WOM. Roadshows and booths at big universities, offices, and malls in California are ways to reach and remind target customers about the brand. Distributing free small samples encourage consumers to try Cara products. Incentives for customers who buy Cara products at booths could be free makeup and skin analysis by dermatologists.Cara sponsors consumer’s special occasion and activities, such as prom night, cheerleader club, graduation ceremony, wedding, etc. Consumers can write requirement proposals to headquarters. Trading discounts is good market research. Consumers can use their empty makeup products as a discount to buy Cara products. Doing so, Cara can know which brand is popular among target customers.
- #57 Cara respects individual employees at every level. The company will have both top-down and bottom-up management. Executive level manages operation processes. They are responsible to make decisions on major projects and assign tasks to individual employees. At the same time, entry-level employees have the right to express their opinions if they think some tasks could lead to project failures. Employees from each department are to meet the CEO monthly to report work in progress. Each month one employee will be sent out to help his or her favorite non-profit organizations. After that, they must write a one-page report telling the benefits Cara could have if the company supports that organization. It could be either emotional benefits or sales benefits. Additionally, when the marketing departments are doing consumer research, employees in other department could be participants, but the results are confidential.
- #58 Comments on Cara social media will be responded to customers within 24 hr. Customer’s problems will be solved within three days, including weekend. Delivery service must be on the exact day that the company specifies on the website. Cara must compensate customers for lost and late orders. Furthermore, customers can return products either at stores or ship the products to headquarter within 30 days after purchase. Cara must record customer’s reasons why they return products to develop performances in the future.
- #59 Because testimonials and good recommendations raise the brand reliability, Cara will give premium gifts as thank you to customers who share their positive stories on their social media as well as Cara social media.
- #61 Number of prospect customers acquired could be counted by number of clicks from SEO and Cara social media, such as YouTube subscribers, Facebook likes, Twitter/Instagram/Pinterest followers, event participants, and so forth. Sharing contents on the Internet world should also be counted because it tells how successful of particular campaign. Cara should track and measure a conversion between prospect customers and actual customers to understand that which media and what campaigns are successful. Status of existing customers and their total transactions for each payment should be measured quarterly. Cara should analyze their purchasing behavior and put effort to retain these customers. For instance, online surveys can be sent to customers in the database annually. Understanding their preferences leads to higher customer’s satisfaction and repeat purchases. For customers who purchased Cara products at stores, the exact number may be hard to count, so Cara should cooperate wit the retail stores to track transaction from purchased receipts. Therefore, the brand had better understand customer behavior at stores and improve sales forecast measurement. Observation research can be implanted in a way of setting video at specific retails. Watching consumers’ reactions could also ignite some plans to boost sales. Return of Marketing Investment (ROMI) must be measured along all campaigns. For short-term ROMI goals, sale performance should not be lower than sale forecast. If it is, Cara marketing team must know the reasons and make decision whether to continue that campaign in the future or cancel some projects. For example, due to media buying and big prizes, video contests are costly. Cara can measure the number of sales before, during, and after the contest launch. If the sales are stable, it could refer that this campaign is not worth to invest. However, the contest may impact a wide range of target consumers and be viral in the future. Consumers may buy products in months after the contest finished. For this reason, Cara should do ROMI in terms of emotional values as well. Another example is Corporate Social Responsibility (CSR). It can’t promptly raise the sales, but it builds image in a long-term. In other words, emotional values are the long-term goals of ROMI. Cara’s R&D team can hire professional research agencies to conduct both consumer and customer qualitative research. Topics should involve brand equity, product purchasing decision processes, competitor’s performance, etc.
- #67 Basically, Clearasil should solve upfront problems at all time. The management team should have internal meeting weekly to update the works in progresses. However, after Clearasil has tried everything and Cara still doesn’t reach the break-even point at the end of three years, Clearasil should terminate this project. Reckitt Benckiser may sell machines and supplies to L’Oreal or other small businesses to get some of depreciation costs. The marketing team may select either alternative one or two to be the future marketing plan. However, Clearasil must adapt execution to fit with the future circumstances. For example, Clearasil might research more on how the brand can encourage teenagers to purchase more, or launch new product to persuade lost customers to repurchase Clearasil products.