De La Salle University

Graduate School of Business

STRATEGIC MARKETING (MMC502M)
Term 2 (AY 2016 - 2017)

STRATEGIC MARKETING PLAN FINAL PAPER FOR

Submitted by:
Flores, Claudette Trixia
Licuanan, Adrianne Joy
Miranda, Melissa Kathryn
Tagle, Allaiza Jasmin

Submitted to:
Dr. Regina Dy

April 4, 2017
EXECUTIVE SUMMARY
TABLE OF CONTENTS (include pages)
Executive Summary

Table of Contents

I. Market Analysis
A. Industry Analysis
1. Macro Analysis (PESTEL)
B. Micro Analysis
1. Competitors and competitor analysis
2. Porters 5 forces
3. Pricing, Products, distribution and other promotional campaigns vs. your
company
C. Company Profile
1. Company History
2. Include current market position/ Market Share
D. SWOT

II. Goals and Objectives

A. Marketing Plan goal
B. STP Define segment, Target and Positioning
Demographic, Psychographic, Behavioral
C. Goals Timetable (Short Term Goals -1 Year (Gantt Chart; Monthly for a year)
Long Term Goals 5 years)

III. Marketing Strategies

A. Marketing Communication Programs (Include all type of Promotion)
B. Media Plan and Schedule (Gantt Chart)

IV. Investment Plans

A. Budgets
B. Estimates of Profitability (Mini FS)

V. Evaluation of Results

A. Control Measures and Metrics (Measures of Profitability)

CHAPTER 1

MARKET ANALYSIS

I. Market Analysis
A. Industry Analysis

Figure 1: Beauty and Personal Care by Category

(Euromonitor International, 2017)

1. Macro Analysis (PESTEL)

Political

The outlook in the UK and US continues to be downgraded over 2015-2020, to

1.5% and 2% respectively. The unpredictability of Trumps presidency, and the UKs
likely exit from the EUs Single Market and Customs Union, pose challenges for FMCG,
 not least the beauty industry, to continue operating hurdle-free. The UKs Cosmetic,
Toiletry and Perfumery Association also warned about disruptions along the supply chain
that may result in higher costs and potentially higher prices, even in the mass segment.

The UK outlook is also prone to unsustainable levels of consumer debt, which is

currently driving growth, but may falter in the near future. The UK outlook, combined
with the sheer product choice, means that consumers have room to be highly rational.
Some of the relative strength of colour cosmetics over skin care (Quarterly Update of
4.4% and 0.8% Compound Annual Growth Rates (CAGRs) respectively, over 2015-
2020), results from consumers on tight budgets choosing make-up with skin care
benefits, such as moisturising, and concurrently reducing expenditure on facial
moisturisers (-0.5% CAGR over the same period).

The price of complements is also expected to impact prospects, as the Forecast

Model shows. Complementary products, such as mass face masks and facial cleansers,
are expected to increase in price, thus depressing some of the future demand for skin
care in the UK. In parallel, high competition coupled with lower consumer confidence
means that brands will have to battle for less overall spending, expected to dampen
demand over the forecast period.

Economic

The quarterly update as of February 2017 reveals a worsening downgrade, albeit

marginal, to the beauty and personal care growth forecasts (loss of 0.2 percentage
points), with the forecast CAGR over 2015-2020 now standing at 2.7%. The slight
downgrade reflects global headwinds that are deteriorating in core markets that have a
significant bearing on the global prospects for the beauty and personal care industry.

However, in the Philippines, with its growing economy, reflects the healthy and
vigorous private consumption of its population in 2015, which benefited beauty and
personal care. The said industry despite being affected by the countrys significant
issues in 2015, still posted a steady growth of 4% to reach Ps160.8 billion. Due to the
steady growth of the economy and the abundant supply of jobs, consumers enjoyed
considerable disposable incomes to spend on fewer dependents per family. Huge
allowances are now expected to be spent on brands perceived as being of a higher
quality within beauty and personal care.
 The changes in consumers lifestyles are triggering the consumption of products
that are not apparently necessary and can be considered indulgent or even luxury,
resulting in the further growth of categories catering to more specific, beneficial,
sophisticated facets of beauty and personal care. Despite some categories in the market
becoming mature, the increase in Filipinos allowances provides room for further growth
and the development of niche products as demand rises through changing lifestyles.

Social

According to a study by Barbalova, who manages the research programme for

the global Cosmetics and Toiletries industry at Euromonitor International, consumers are
becoming more focused on experiences, particularly as time has become a luxury
commodity, as well as mindful enjoyment of life. Increasingly, how consumers feel is
directly tied to beauty and mindfulness, which is about a more enjoyable lifestyle,
improvement of aging and overall health.

A subset of consumers are focused on the new glamour, epitomized by social

media luminaries, such as Kim Kardashian. Also, certain brands found out and identified
the pure trend, in which consumers look for perfection and focus on what is best in life.
These consumers seek out new textures and sophisticated and refined products.
Furthermore, these brands as well explored the implications of the new feminist, who is
true to herself, looking for challenges and who views beauty as a personal, individualistic
statement of strength.

Technological

Cosmetics have existed in some form for thousands of years. Some date the use
of beauty products as early 10,000 BC. The earliest documented use of cosmetics
occurred around 4000 BC in ancient Egypt. The earliest beauty products included kohl
for use around the eyes, rouge for cheeks and lips, white face paint, and oil perfumes
Taylor, M. L., Coates, T. L., Anyansi-Archibong, C., & Norihito, T. (2013).

But as the world continuously enters technological advancements and

consumers become more exposed to information, their demands and lifestyle changes.
Beauty players become increasingly focused on stronger digital engagement to reinforce
transparency and provide consumers with access to additional ingredient information.
Brands have also seen the need for ingredient innovations by creating more efficient
products, as well as materials that can be applied to multi-step beauty rituals. In addition,
 new launches highlight the importance of increasing the sensory experience through
texture, color and other product aspects, as well as boosting the sustainability of beauty
and personal care.

Even experts begun to discuss the leveraging of personal data to create product
recommendations or boost machine learning. More and more brands are using digital
platforms to build R&D and brand intimacy. Meanwhile, new beauty devices are being
introduced to allow consumers to self-analyze the condition of their skin.

In the Philippines, beauty and personal care grew steadily in 2015. Increasing
incomes among consumers paved the way to bigger opportunities, even for niche
categories. As young consumers harness the power of digital technology, knowledge
about products, brands and the benefits of using them was readily available and helped
in pushing further growth for the category in 2015.

Environmental

Consumers globally show a growing awareness of naturally derived ingredients

as well a desire that products are sustainably produced, these concerns are primarily
evident in most Asian markets. As technological, environmental and economic changes
are increasing, demands for more naturally derived ingredients in beauty products is
also growing. This industry-defining trend is consumers growing interest in natural,
organic and ethical products a widening spectrum of green beauty.

In order to cope up with this growing trend where consumers demand for more
information and to get more engaged not just with the health aspects of ingredients but
also with their origin, processing and environmental footprint. Beauty players became
increasingly focused on stronger digital engagement to reinforce transparency and
provide consumers with access to additional ingredient information.

This also had a huge impact on beauty and personal care companies that are
into animal testing. In a database created by PETA, 30 personal care and beauty brands
were listed as companies that includes animal testing as part of their procedures, Out of
these 30 brands, 9 are top cosmetics brands. The organization encouraged consumers
to be a part of an advocacy to stop animal cruelty in any forms and convince them not to
utilize beauty and personal care products that have undergone animal testing.
 On the other hand the organic personal care industry, including cosmetics or
green beauty, is forecast to grow at a rate of 9.6%, reaching $13.2 billion by 2018,
according to Transparency Market Research. By 2020, the market is expected to reach
$15.98 billion, according to Grand View Research. Despite the 17% growth from 2018 to
2020 it is expected that market downgrades will continue due to global uncertainty.
Furthermore, the lack of a standardised, globally accepted definition of such beauty
category creates challenges both for consumers and manufacturers making it a
challenge in predicting the beauty industry outlook.

In most Asian countries, especially in the Philippines, where consumers are

preoccupied with emerging beauty threats, for instance air pollution and UV exposure,
ingredient companies are stepping up to offer marketers a new range of ingredients and
claims. More and more companies are making safer cosmetics and personal care
products that work just as well if not better than products made with toxic chemicals.

Legal

The European Union, now 28 countries strong, has more stringent and protective
laws for cosmetics than the United States. The hazard-based, precautionary approach of
the EU acknowledges that chemicals linked to cancer and birth defects simply dont
belong in cosmetics regardless of the concentration of the chemical being used.

The EU Cosmetics Directive (76/768/EEC) was adopted in January 2003 and

most recently revised in 2013. The EU law bans 1,328 chemicals from cosmetics that
are known or suspected to cause cancer, genetic mutation, reproductive harm or birth
defects. In comparison, the U.S. FDA has only banned or restricted 11 chemicals from
cosmetics. Unlike the United States, EU law requires pre-market safety assessments of
cosmetics, mandatory registration of cosmetic products, government authorization for
the use of nanomaterials and prohibits animal testing for cosmetic purposes.

Like UK, Canada also formed law in order to protect the safety of their people,
which is known to be the Canadian cosmetics regulations. These regulations are said to
be far more stricter than those in the United States. Health Canada, the federal
department responsible for helping Canadians maintain and improve their health,
regularly reviews the safety of cosmetic ingredients and prohibits or restricts the use of
ingredients that present health risks, according to their website. The Canadian
government regularly updates a Cosmetic Ingredient Hotlist that includes hundreds of
 chemicals and contaminants prohibited and restricted from use in cosmetics such as
formaldehyde, triclosan, selenium, nitrosamines and 1,4-dioxane all of which are
allowed in U.S. products.

In addition, cosmetic manufacturers, by law, are prohibited from selling cosmetics

that contain ingredients that present a hazard to the health of Canadians; must disclose
all cosmetic ingredients to Health Canada; and are required to register their products.
Labeling requirements that went into effect in 2006 require ingredient lists to appear on
all cosmetic product labels. Increased disclosure is making choosing safe products
easier for Canadian consumers.

II. Micro Analysis

A. Competitors and competitor analysis

B. Porters 5 forces
C. Pricing, Products, distribution and other promotional campaigns vs. your company

III. Company Profile

A. Company History

Human Nature (Gandang Kalikasan, Inc.) was the brainchild of Gawad Kalinga volunteers Camille
Meloto, Dylan Wilk, and Anna Meloto-Wilk who wanted to start a revolution of inclusive enterprises
that promote caring and restore communities.

Human Nature was the first cosmetics and personal care company in the Philippines to be awarded the
distinction of being truly cruelty-free by the People for the Ethical Treatment of Animals (PETA), the
largest animal rights organization in the world. Human Nature was also the first and is the only Filipino
company to have signed PETAs statement of assurance against animal testing.

Human Nature is the first and only Philippine home and personal care brand that is a member
of the Natural Products Association (NPA).

NPA is the largest and oldest nonprofit organization in the US dedicated to the promotion of
natural manufacturing and protecting of consumers' health and environmental safety.

The NPA Seal certifies compliance with the NPA Standard for Personal Care Products on natural
ingredients, safety, responsibility and sustainability. This seal is given to products that pass the
following strict standards:

The product is made with at least 95% natural ingredients, excluding water
Ingredients come or are made from a renewable resource found in nature, and
processed without harm to the environment
None of the ingredients pose human health risks as shown by peer-reviewed third-
party scientific literature
The product is not tested on animals
The product must list all ingredients on the label
 B. Company Mission/Vision

MISSION
Being faithful stewards of our God-given talents and natural resources, we will give the best of
ourselves to urgently and sustainably build a global company which will showcase the best of
the Philippines and uplift all our people, especially the poor through providing affordable, quality,
natural products.

VISION
We will be the gold standard of a globally successful enterprise with a heart that will embolden
all businesses to better serve society.

C. Company products, price list, distribution and promotional campaign (Concentrate only on
what you plan to study.

Many Human Nature products have already been

awarded the Natural Seal:

ORAL CARE BEAUTY OILS

Natural Toothpaste Pure Rosehip Oil
Natural Kids Toothpaste Pure Jojoba Oil

HAND & FOOT CARE BABY CARE

Natural Liquid Hand Soap Natural Nappy Cream
All Natural Spray Sanitizer Natural Baby Wash
Deodorizing Foot Spray Baby Bottle & Utensil Cleanser

HOME CARE BODY CARE

Natural Dishwashing Liquid Cooling Leg & Body Cream
Natural Liquid Detergent
Natural Powder Detergent BODY CLEANSING
Peppermint Oil Exfoliating Bar
Fragrance-Free Gentle Cleansing Bar
INSECT REPELLENT Natural Body Scrub
Bug Shield Lotion Natural Body Wash
Scented Cleansing Bars

MEN'S CARE
Human Nature for Men Natural Cleansing Bar FACE CARE
Human Nature for Men Natural Deodorant Acne Defense Facial Wash
Human Nature for Men Natural Oil-Fighting Face Acne Defense Solution Gel
Wash Detoxifying Mask + Scrub
Human Nature for Men Natural Shower Gel RoseDew Mist
Human Nature for Men Deodorizing Foot Spray Purifying Facial Scrub
Radiant Grace Night Cream

WELLNESS
Massage Oil KIDS CARE
Citronella Oil Natural Kids Bath Soap
Eucalyptus Oil Natural Kids Sanitizer in Cosmic Clean
Lavender Oil
Orange Oil HAIR CARE
Rosemary Oil Clarifying Shampoo
Tea Tree Oil Conditioning Hair Mist
D. Include current market position/ Market Share

IV. SWOT

Weaknesses Strengths
(Internal Analysis) (Internal Analysis)

1. Laiza - Product distribution 1. Laiza - Produced by local farmers in the

2. Philippines
2. Laiza - Manufactured effective, safe and
environmentally sustainable products
3. Laiza - Provided job security for Filipinos
4. Laiza - Very active in their corporate
social responsibility as it started with
Gawad Kalinga
5. Laiza - Affordable products

Threats Opportunities
(External Analysis) (External Analysis)

1. Laiza - Intense market competition 1. Laiza - Increase of purchasing power

(Social) among millennials (Economical)
2. Laiza - Global warming (Environmental) 2. Laiza - Health consciousness among
consumers (Social)

CHAPTER 2

GOALS AND OBJECTIVES

LAIZA***A goal tells where a business wants to go and is a broad statement of what to achieve.
Objectives on the other hand are more specific and quantitative indicating sales volume (units or peso),
market share, profit among others

I. Marketing Plan / Goal

Statement of the Problem

How can Human Nature be the top of mind local, organic makeup brand?

Statement of the goals

1. To promote Human Nature and the benefits of using organic make up product.
2. To support local make up products.
II. STP
A. Segmentation

B. Targeting (Demographic, Psychographic, Behavioral)

Demographics
For ages 16 to 50 years old, female, students and working professionals from SEC B and C

Psychographics
Conscious about the harmful chemicals and effects of cosmetics in the long run
Checks the ingredients before buying the product to be consumed

Behavioral
Wants to purchase affordable yet effective products
Would not settle for low quality cosmetics

C. Positioning

III. Goals Timetable (Short Term Goals -1 Year (Gantt Chart; Monthly for a year)
Long Term Goals 5 years)
SHORT TERM GOALS

1.

LONG TERM GOALS

1.

CHAPTER 3 (KATH)

MARKETING STRATEGIES

A. Marketing Communication Programs (Include all type of Promotion)

1. Advertising Program
a. Objectives
i. To promote awareness of the Human Nature brand
b. Target audience
c. Creative approach
d. Media plan
2. PR Program
a. Objectives
i. To promote awareness about the benefits of using organic make-up
b. Strategies
 i. Blogger conferences - fashion bloggers are invited to have a feel of the
organic make-up Human Nature is offering and to see for themselves how
its different from the non-organic make-ups
c. PR Materials
d. Schedule

B. Media Plan and Schedule (Gantt Chart)

CHAPTER 4

INVESTMENT PLANS

A. Budgets

B. Estimates of Profitability (Mini FS)

CHAPTER 5

EVALUATION OF RESULTS

A. Control Measures and Metrics (Measures of Profitability)

References

Euromonitor