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BRONZE ADORA

Executive Summary

Prepared by:
Titi Kristiani
B414843

BRONZE ADORA - Executive Summary

Company Background

Bronze Adora was found in 1940 and known as the most trusted brand for sun protection
industry in UK.
The company provides high quality products with complete product portfolios include
suncare, after-sun and self-tan.
The company objective is to achieve at least 14m gross contribution by 2018.

Current Market

Sun protection market in UK, with 207m retail sales value estimated in 2015, has
significant grown of 6% on average per year with top three company dominating 74% of
total retail sales shares: Bronze Adora, Solcare, and Sunray (see Figure 1).
o Bronze Adora: 28%.
o Solcare: 28%.
o Sunray: 18%.
Figure 1: UK Sun Protection Products 2015 Market Share

The growing trend has rising as the impact of global warming producing harmful sunray that
increase the public awareness on specific skin condition: Sunburn and Skin Cancer.
Three types of customer segmentation in sun protection industry (see Figure 2).
o Protect: Led by Bronze Adora with 39.02% shares.
o No-Hassle: Led by Solcare with 25.45% shares.
o Children: Led by Sunray with 52.94% shares.

BRONZE ADORA - Executive Summary

Figure 2: UK Sun Protection Products 2015 Market Revenue by Segment

Market research results disclose change in segment trends from 2015-2018 with year by
year on average growth varies (see Figure 3).
o Protect: decrease 11%.
o No-Hassle: increase 3%.
o Children: increase 4%.
o New growing segment Mens targeting masculine enthusiast predicted to grow 10%
by 2018.
Figure 3: Sales by Segment Actual and Forecast

In terms of innovativeness, Bronze Adora considered far from competitiveness in both


product variety and distribution strategy.
o Solcare has its own channel stores, Bootles, owned 46% of distribution channel.
o Solcare and Sunray offered more convenient product delivery format such as sprays.
o Solcare successfully launched Just Once product delivering six-hour protection with
just one application.

BRONZE ADORA - Executive Summary

Current Marketing Strategy with Estimated Financial Projection

In 2015 Bronze Adora achieve 13.3m gross contribution with 83.3% input comes from
Protect segment as the strongest contributor for the company.
Target market share for 2016-2018 in each segment is aim to stay at current position with
no interest in Mens segment.
o Protect: 39.02%
o No-Hassle: 12.73%
o Children: 8.24%
Financial projection for 2018 using current target market share combined with sun
protection trend shows 24% gap (3.33m) from 14m target of companys gross
contribution (see Figure 4).
o Protect segment as mature category will drop its contribution up to 60% by 2018.
o No-Hassle segment with 2.74m and Children segment with 1.57m as growing
category have positive growth but not significant enough.
Figure 4: Financial Projection with Current Marketing Strategy

Bronze Adoras strong brand reputation as trusted brand in sun protection products is the
only prominent competitive advantage delivered in all segments.
The company is lacking of innovation from product side that will makes it difficult to endure
as market leader in Protect segment as well as to grow No-Hassle and Children segments.
The company is lacking of distribution and product strategy for No-Hassle and Children as
growing segments.
The current marketing strategy has possibility to fail the company objective if continued
further.

BRONZE ADORA - Executive Summary

New Marketing Strategy with Estimated Financial Projection

In order to decide priorities, analysis of product portfolio using The Boston Matrix was
completed combined with marketing mix for each segment (see Figure 5).
o Protect:
Maintain the market leader position at 39.02% by establish loyalty program
to maintain the devoted buyer executed at selective distribution channel.
Advertisement focus on product innovation and most trusted retail brand.
Decline cycle will started from 2017 so at that time the company need to
focus on productivity and put less marketing investment.
o No-Hassle:
Expected to grow 6% per year with push and pull penetration by expanding
into Europe market and do product trial promotion by putting sales advisor in
key distribution stores.
Advertisement focused on most trusted brand for outdoor activities.
o Children:
Expected to grow 9% per year with sales penetration strategy by expanding
into child specific stores and establish customer service hotline to deliver pre
and post sales purchasing advice.
Advertisement focused on most trusted brand for children.
o Mens:
A brand-new field that has potential to establish market leader position.
On first launch 2016 will grab at least 80% shares, once there are competitors
will maintain to 55%.
Focus on market expansion with patchy distribution and offer product trial to
consumers.
Strong advertisement plan focused on first-in-market brand message.
Figure 5: Market Share Projection with New Marketing Strategy

BRONZE ADORA - Executive Summary

Financial projection for 2018 using the new target market share combine with sun
protection trend shows 23% over achievement (3.21m) from 14m target of companys
gross contribution (see Figure 6).
Figure 6: Financial Projection with New Marketing Strategy

In order to achieve 17.21m gross contribution in 2018 as above, total marketing fund
proposed for the new strategy for the next three years is 17.32m with split as Figure 7 in
which No-Hassle and Mens segments will be a promising contributor to the company (see
Appendix 1).
Figure 7: Marketing Fund Proposal with split by segments
DESCRIPTION
REVENUE ():
Protect
No-Hassle
Children
Men
Total Revenue
GROSS CONTRIBUTION ():
Protect
No-Hassle
Children
Men
Total Gross Contribution
MARKETING EXPENSE ():
Protect
No-Hassle
Children
Men
Total Marketing Expenses

2016

2017

2018

41.86
8.32
5.49
9.33
65.00

33.35
11.14
9.05
11.72
65.26

28.00
15.36
13.26
14.10
70.72

9.42
2.16
1.35
2.43
15.35

7.50
2.90
2.22
3.05
15.67

6.30
3.99
3.25
3.67
17.21

2.93
1.14
0.98
1.43
6.47

1.98
1.04
0.91
1.25
5.20

1.87
1.24
1.13
1.41
5.66

BRONZE ADORA - Executive Summary

Implications of Strategy with Other Departments

To achieve the company objective, it is important for marketing to have strong alignments
with other departments:
o Marketing and Sales: Strong collaboration by convey fast response on market
situation and competition as priority.
o HR: Maintain key sales persons to avoid any manoeuvre from closest competitor.
o Finance: Focus on financial reports that can evaluate sales achievement as well as
measure the successful of marketing strategy implementation.
o Operations: Deliver a continuous daily process to meet suppliers satisfaction level
and company standard.
It is suggested to hold Bronze Adora Company Update for all employees in quarterly basis
mainly to refresh the company progress and remind employees to apply the responsibility
for creating customer satisfaction within their profession.
Recurrent meetings between related departments to review the progress in monthly basis is
needed to maximise the collaboration.

BRONZE ADORA - Executive Summary

Appendix 1
New Marketing Strategy - Budget Allocation

2016:
o Request for 10% marketing fund with total 6.47m to achieve Total Revenue 65m.
o #1 Highest spend 45% from Protect segment in order to maintain 39.02% shares, #2
spend from Mens segment with the launching cost predicted to spend 22%, #3 NoHassle segment predicted to spend 18% and #4 Children segment with 15% cost to
penetrate the market with push and pull strategies.
2017
o Request for 8% marketing fund with total 5.20m to achieve Total Revenue 65.26.
o #1 Even though the trend is declining, investment still will be located mainly to
Protect segment but with decrease allocation cost 38% contribute 51.1% of revenue,
#2 Men with 24% cost and #3 No-Hassle with 20% cost both contribute to 35% of
revenue, and #4 Children segment with 18% cost contribute 13.8% of revenue.
2018
o Request for 8% marketing fund with total 5.66m to achieve Total Revenue
70.72m.
o #1 Investment will be allocated firstly to Protect segment with decrease allocation
cost 33% that contribute 39.5% of revenue, #2 Men with 25% cost and #3 No-Hassle
22% in which both has the growing potential to generate at least 41.6% revenue to
the business, and #4 Children segment with 20% cost deliver 18.8% revenue to the
business.
By consistently doing improvement in marketing mix strategies, product innovation and
committed to customer needs collaborated across all departments, Bronze Adora have
opportunities to lead the sun protection industry in all segments.

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