Splash Analysis

Topics: Marketing, Personal care, Pricing Pages: 10 (3037 words) Published: January 6, 2013
International Expansion|

Splash—International expansion analysis|


Executive Summary
Current Situation
Critical Issues
Macro-environmental Analysis—Market Analysis
Industrial Analysis-- Michael Porter's 5 Forces Model
Internal Analysis--SWOT
Business Strategy
Price Strategy
Promotion Strategy
E-Business Strategy

Executive Summary
The aim of this report is to resolve the critical issues of Splash on the international expansion. In the first part, we can have a quick grasp on brief information of Splash. Secondly, to look the issue into details, we have analysis the macro-environment, industry and internal environment of Splash. At last, in order to have a successful international expansion, we made recommendations based on the analysis. Introduction

Current situation
Company profile
The Splash Group is composed of wholly-owned Philippine companies with business interests in personal care industry. Founded in 1985, Splash was able to grow from a Php12, 000 backyard businesses into a Php4 billion enterprise through the vision, innovation and commitment of its founders, Dr. Rolando B. Hortaleza and Dr. Rosalinda A. Hortaleza. Product & price

Estraderm and Maxi-Peel
Maxi-Peel held 65 percent share of exfoliate category and Extraderm held 15 percent. On the launch path, the price of product is relatively lower than the competing products while after Maxi-Peel have commanded much consumer loyalty the price is roughly 10 percent higher than competing brands. SkinWhite

SkinWhite command 29 percent share of whitening market in 2005. This series product is aim at middle-class market segment. SkinWhite products are priced approximately 15 percent lower than the competing products from Unilever. BioLink

These products target at consumer who prefers to use whitening products based on natural ingredients rather than the prevalent and more effective chemical whiteners. BioLink products priced 10 percent higher than products from the multinational competitors. Hair Care Products

Splash offered lines of styling gel, which are aim at teenagers. The prices are 20 percent lower than Dep from Schwarzkopf & Henkel. Splash offered a line of hair coloring agents whose prices are 30 percent to 50 percent lower than those of premium brands, such as L’Oreal. Natural and Nutraceutical Products

TheraHerb encompassed various products, but the anchor products were derived from virgin coconut oil (VCO). In the domestic market, the products are priced between P150 and P180 per bottle. Consumer

Splash mainly aim at the middle and lower classes, such as masa, masses, who prefer low-cost, high-value products and typically purchased them through Sara-saris, or local stores. Critical issues

The globalization brings both opportunities and challenges to the company. As a smaller corporation to the multinational corporations, Splash have to overcome tough challenges to successfully expand internationally. So, the critical issues are:

Should Splash make international expansion? Where to expand? How Splash expands international operations successfully? Analysis
Industry analysis--Michael Porter's 5 Forces Model
Barriers to Entry
The growth rate of industry is high. There are well-defined product standards or specifications, which newcomers can implement. The industry has no history of retaliation by incumbents against new entrants. Those factors really attract newcomers. However, large firms in this industry enjoy economies of scale and advantages of size (scale and diversity of products). Industry incumbents benefit from experience curve economies, which include product development, distribution networks and supply chain. These products are characterized as having well-supported, strong brands, and superior development, commanding premium pricing. Industry entry requires much capital and it...
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