Felp Computer Services, Income Statement, Are They Ready to Put "Avocados" on Their Faces

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TOPIC: ARE THEY READY TO PUT “AVOCADOS” ON THEIR FACES?
FACTS OF THE CASE:
Since March 1993, Mr. Ricky Bautista, president of Vive Chemical Philippines (VCP), had been searching for a marketing firm to introduce and promote the company’s new line of herbal astringents, which the company perceived to be a new product development breakthrough in the facial care industry. In September 1993, Mr. Ricky Bautista, excitedly called his production manager about the possibility of having King Matches Corporation (KMC), a nationwide distributor of consumer products, market the company’s new line of herbal astringents. This product line had been tested in-house and produces highly satisfactory results among selected employees who tried the product. POINT OF VIEW:

Mr. Ricky Bautista, President of Vive Chemical Philippines (VCP)

PROBLEM:
1. What would be the best target market segment and the product positioning of ProVIVE? 2. What would be the marketing strategy that would help the product positioning of ProVIVE?

AREAS OF CONSIDERATION:
1. Product
Brand name “ProVIVE” claimed an attribute of relaxes stressed skin .Conceptualized as a “natural product”

2. Market study
Participants: Two (2) FGDs: income class b and c between 21-30 years old. Tested among 100 females with the same demographic characteristics as the FGD participants.

3. Qualitative Research Findings
“Astringent” was the more common term used in the market segment of facial care product users. Segmented into two (2) groups: users of astringent as recommended by dermatologist or other professionals and users of over-the-counter (OTC) astringents.

Astringent users were likely to be influenced to use a specific brand by the:

(1) advertisements and endorsers (2) barkadas (friends),(3) family and relatives, particularly older sisters,(4) availability of point-of-purchase materials, (5) professional or expert advice, and (6) perceived effect of the brand on the skin family and/or friends.

4. The Product Concept
Among the FDG participants, the concept of “natural” was defined as ‘clear, plain or transparent”. Any additives such as herbs, tawas (alum), or color was perceived as”not natural” by most participants and did not enhance efficacy of the product. When the concept of an astringent as malamig (cool), clean feeling, fresh feeling and young feeling was presented the participants exhibited difficulty in visualizing the “feeling” attributes . Participants have no negative reactions to the brand name. They generally liked the package and copy of “relaxes stressed skin” as being upscale or sosyal. They expressed concern about the flip-top, which might be accidentally open inside the handbags. They mentioned some difficulty in equating “ herbal” as having “ no additives”.

5. Quantitative Research Findings
The market leader is the Eskinol. Switching among astringent is fairly common with about 60%. When asked to try the product, about 7 out of 10 respondents said the product smells good and 62% was refreshing, cool, feels good on the skin. Less the 10 percent of the respondents had negative reactions on the sample product.

6. Pricing
A 75 ml bottle of Eskinol was price within the range of 7.50 to 8.75 in the leading department store. Some 75 ml bottle SRP for as low as P4.50 and some local brands SRP at P12.00.

7. Distribution
Retailers carrying personal hygiene product extensively distributed Eskinol, Splash, Tawas and most astringent brands. According to the manager of Tawas brand, astringents were most often purchase in department stores and drug stores. Healthy and beauty shops were making inroads in the distribution of astringents and seemed to be preferred by younger and more upscale markets.

8. Promotions
The large part of the success of Eskinol was attributable to Ms. Vilma Santos. Eskinol was a heavy media advertiser on tri-media; i.e. television, print and radio. Splash was preferred a number of sales promotional tools such...
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