Redwin Strategic Marketing Plan

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Redwin
Strategic Marketing Plan

Table of Contents
Title Page1
Introduction3
Situation Analysis4
Market Analysis5
Customer Analysis8
Competitor Analysis15
Internal Analysis22
S.W.O.T Analysis28
Strategic Position31
Vision and Mission32
Marketing Mix Strategies33
References35

Introduction

Redwin is a small Australian based company with a relatively broad product range of body and skincare brands. Redwin also seeks to expand their product range overseas and within other product categories. Their products are Australian made and owned, are relatively priced, environmentally friendly and are also created from natural ingredients. Their current products include a range of sorbolene lotions, body washes, hand washes, moisturising bars, deodorants, shampoos, facial cleansers and creams, and other assorted creams. Redwin are currently positioned within the hand and body and cleanser and moisturiser market. The purpose of this report is to conduct a series of analyses in order to work out the strengths, weaknesses, opportunities and threats that directly affect Redwin and its overall business operations. This was done by looking at the environments, markets, customers, competitors and internal workings.

Situation Analysis
Market Analysis

Skin Care Market Overall Analysis
Skin care’s constant value sales are expected to grow at a CAGR (Compound annual growth rate) of 3% over the forecast period of 2006 to 2011 to reach A$ 1.41 billion (Refer to table 1). Table 1
% constant value growth2006-11 CAGR2006/11 TOTAL

Facial care 3.216.9
Body care 2.211.4
Hand care 0.84.1
Skin care 316
(http://www.euromonitor.com/Cosmetics_And_Toiletries_in_Australia).

Firstly we examined the value sales of cosmetics and toiletries by sector or type for the years 2001 to 2006. Below is a table that represents this data. A$ million200120022003200420052006

Baby care 36.637.839.140.241.444
Bath and shower products 287.8310.1320.6327333.5339.7 Deodorants 236.7248.5257.8266.2273.5280.9
Hair care 651.7686.9710.5734.8758.1765.3
Colour cosmetics 661682.7703722.5741.3765.8
Men's grooming products 302.9322.6343.5362.2380.1400.8 Oral hygiene 418.5447.7479496.2511.2525.5
Fragrances 498.7508.4522.7538.1554.7575.4
Skin care 931.3971.81,029.401,077.601,138.101,214.00
Depilatories 38.542.848.252.656.760.4
Sun care 84.190.795.5101112.9123
Premium cosmetics 1,092.001,138.301,192.301,246.101,314.901,385.90 Cosmetics and toiletries 4,026.904,218.104,403.704,560.004,731.004,912.10 (Euromonitor 2007)

The biggest contributor to sales measured in value, are premium cosmetics. However, Redwin does not fall into the category of premium brands. The second biggest contributor would be skin care. The trend shows that the average sales by value is increasing exponentially, i.e. increasing from years 2001 to 2006. This clearly shows that the most profitable scope is skin care and thus suggests that Redwin stick to skin care in efforts to expand in the near future.

Also, the sales by value growth for cosmetics and toiletries show that skin care has grown each year. However, when measuring growth other areas, men’s grooming products and sun care have grown more over the past 5 years. That is men’s grooming products grew a total of 32.3% and sun care, 46.3%. This observation brings about 2 inferences; firstly, the rise of the meterosexual male is an important thing to consider when looking for new markets in this day and age. Secondly, sun care could be an unsaturated market that is growing rapidly. Refer to table 4 below for data.

Table 4
% current value growth2005/062001-06 CAGR2001/06 TOTAL

Baby care 6.43.720.1
Bath and shower products 1.93.418.1
Deodorants 2.73.518.7
Hair care 13.317.4
Colour cosmetics 3.3315.9
Men's grooming...
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