Global Communication Plan Sensations Pleasure Toys
1
Contents of Report Introduction
4
Executive Summary
4
Global Market Research
5
European Country Selection
6
Worldwide Country Selection
7
Brand Map
9
Country & Region Choices
10
Communication Situation - Canada - Mexico - The Netherlands
11 11 13 15
Uncertainty Avoidance versus Power Distance - Analysis of Model
17 18
Marketing Mix - Corporate Objectives - Marketing Objectives - Product - Price - Pricing Policies - Place
19 19 19 20 22 23 24
Promotional Mix - Advertising - Sales Promotion - Direct Marketing - Public Relations
25 25 29 30 30
Opportunity Matrix
31
Standardisation
32
Product Life Cycle - Product Life Cycle (In Depth Look)
32 33
Conclusion References
34 35
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Introduction This report will cover various aspects of the global communication plan for Ansell to release numerous sexual enhancement products into the worldwide marketplace, to compete and challenge competitor’s current offerings. The report details research that suggests there is growing demand in the global marketplace for these products and the markets in which to establish launch platforms. Three significantly different markets have been chosen, to test the waters in each region, so that analysis on their success and communication patterns can be copied in neighbouring countries and markets in the future.
Executive Summary Initial Research
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The “Lifestyles” brand of condom healthcare consumer products are currently sold in 15 countries worldwide, with other brand name products scattered across the world. The Lifestyle brand is the most universal sounding and largest of all others, including Mates (UK), Manix (Western Europe) and Blowtex (South America). Research suggests that the market and interest for other product offerings that intensify sexual relations between partners is increasing. The Lifestyle brands in the USA and Canada have extended the brand into new product offerings. This is also the case with Mates in the UK and Manix in France. All brands offer new products in this category under the “Intensify” product name, although many regions have yet to have any such product offerings launched. New products have in the Intensify product range included, Vibrating Condom Rings, along with stimulating gel. The direct competitor, Durex has already made a worldwide launch of adult toys and intensifying products under the Play range. Mintel also reports that lubricants and sexual enhancement products have helped increase brand awareness and have been key to Durex’s success. Mintel reported in 2006 that lubricants and vibrating rings are going to help grow the market size of condoms, by altering attitudes and help the market move on. This report will first of all go through the global market research that has been conducted and then go onto the actual global communications plan that will be implemented in the three distinct regions/countries being targeted.
Global Market Research Reasons behind choice of countries/regions to launch new products As all of the brands under Ansell are strategically located in various areas, the new intensifying sexual products would be placed in countries that bare Ansell’s local brand names, as has happened in the past with the condom range as well as the “Intensify” range of products.
3 brands were identified as being viable, for looking at short listing countries to choose to introduce these new products into. This was done because these 3 brands that Ansell own are much more widely available than any of the others. These brands included: -
Lifestyles Contempo Manix
(All of the data used in this section, is coming from the Brand Map, located on page 9)
From these, we can short list countries already holding such brands and eliminate ones which don’t currently stock the main brands, which include: - Haiti - Brazil - Paraguay - Argentina - Uruguay - Ireland - Spain - Finland - Italy - Romania - Pakistan - Burma - India
Eliminating more markets included, looking at the Triad markets (Europe / North America / Japan). Japan is obviously eliminated, because of the lack of presence, but because of the need to look at launching this product in very different markets, a choice has to be made between Europe and North America. North America was dropped for now, because Europe’s sales are much larger.
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European Country Selection
Highlighted are countries with presence in already, which are viable or not yet ruled out.
Global Rank
European Country
GNI Per Capita
Population (In Millions)
1
Luxembourg
$76,000
2
Norway
$ 66,500
3
Switzerland
$ 57,000
4
Denmark
$ 51,700
5
Iceland
$ 50,500
6
Ireland
$ 45,500
8
Sweden
$ 43,500
9
Netherlands
$ 42,600
16.4
10
Finland
$ 40,600
5.3
11
United Kingdom
$ 40,100
60.5
12
Austria
$ 39,500
13
Belgium
$ 38,600
10.5
15
Germany
$ 36,600
82.2
16
France
$ 36,500
64.4
7.5
6
19
Italy $ 32,000 59.3 Sourced from 2005 GNI (Gross National Income) per capita World Bank [online] (2006)
From this, 9 countries were highlighted -
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Populations that were under 10 million were excluded as these did not seem viable enough to gain a good exposure level. The top choice then was The Netherlands, with the highest GNI per capita and a population of 16.4 million. In The Netherlands, Ansell currently sell under the brand name Manix.
Worldwide Country Selection Highlighted are countries with presence in already, which are viable or not yet ruled out.
Global Rank
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Country
GNI Per Capita
Population (In Millions)
1
Luxembourg
$76,000
2
Norway
$ 66,500
3
Switzerland
$ 57,000
4
Denmark
$ 51,700
5
Iceland
$ 50,500
6
Ireland
$ 45,500
7
United States
$ 44,900
8
Sweden
$ 43,500
9
Netherlands
$ 42,600
10
Finland
$ 40,600
11
United Kingdom
$ 40,100
12
Austria
$ 39,500
13
Belgium
$ 38,600
14
Japan
$ 38,400
15
Germany
$ 36,600
16
France
$ 36,500
17
Canada
$ 36,100
33.2
18
Australia
$ 35,900
21.2
19
Italy
$ 32,000
20
Kuwait
$ 30,600
21
Singapore
$ 29,300
22
Hong Kong, China
$ 28,400
23
Spain
$ 27,500
24
New Zealand
$ 27,200
25
United Arab Emirates
$ 23,900
26
Greece
$ 21,600
27
Cyprus
$ 18,400
28
Israel
$ 18,500
29
Slovenia
$ 18,800
4.2
30
Portugal
$ 18,100
31
South Korea
$ 17,600
32
Puerto Rico
$ 14,500
33
Bahrain
$ 14,300
33
Malta
$ 13,600
34
Trinidad and Tobago
$ 13,300
35
Saudi Arabia
$ 13,100
36
Czech Republic
$ 12,600
37
Estonia
$ 11,400
38
Antigua and Barbuda
$ 11,200
39
Hungary
$ 10,900
40
Oman
$ 9,000
41
Slovakia
$ 9,800
42
Croatia
$ 9,300
43
Saint Kitts and Nevis
$ 8,800
44
Seychelles
$ 8,600
45
Equatorial Guinea
$ 8,200
46
Poland
$ 8,200
47
Latvia
$ 8,100
48
Palau
$ 7,900
49
Lithuania
$ 7,800
50
Mexico $ 7,800 108.7 Sourced from 2005 GNI (Gross National Income) per capita World Bank [online] (2006)
Findings: -
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Four countries were picked out that were viable. Three of which are all very westernized societies and Mexico which is out on its own in Central America. Out of the three western countries, Canada was chosen because of its highest GNI and still being a very different market than The Netherlands. Mexico, even with its low GNI per capita, was chosen to make sure that the Central and South American region would be viable in the future and Mexico is the wealthiest of all countries in the region, with a very large population also.
(Brand Map) Regions Ansell currently operate within in Condom Healthcare market, with countries and brands in those regions...
North America Alaska • Canada • USA •
Central America Mexico • Belize • Salvador ••• Costa Rica •••• Panama •••• Bahamas •• Jamaica •• Haiti •• Dominican Republic • Guadeloupe • Martinique •
South Europe America Guyana • Ireland • Brazil • UK •••• Paraguay •• Spain • Chilli •• France • Argentina • Belgium •• Uruguay • Holland • Finland • Germany •• Switzerland • Italy ••
Africa
Asia
Australasia
Tunisia •
Russia ••• Kazakhstan
Australia ••
••
Tahiti •
Mali • Niger • Chad • Sudan •• Ethiopia • Senegal • Sierra Leon • Côte d'Ivoire • Burkina Faso •
Czech Republic Ghana •
•
Poland •• Slovakia • Hungary •• Slovenia ••• Croatia • Greece •• Macedonia
••• Bulgaria • Romania • Ukraine •• Belo-Russia
•• Lithuania • Latvia •••• Estonia •
Togo • Benin • Nigeria ••• Cameron • Uganda • Kenya • Tanzania • Congo • Gabon • Zambia • Zimbabwe •• Mozambique
• Madagascar • Mauritius • Botswana • South Africa
••
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China •• Saudi Arabia
• Pakistan • India • Burma • Vietnam •• Thailand •• Malaysia • Indonesia • Philippines •
New Zealand •• New Caledonia •
Final Outcome Country / Region Choices
In “Strategic Marketing Planning”, C Gilligan and R. Wilson talk about “The Key Dimensions of Marketing Strategy”, put into practice this is how it translates for this report in particular.
Which markets so we want to compete in? Canada, The Netherlands and Mexico
With which products and/or services? “Sensations” A new range of sexual intensifying products
What will be the basis of our competitive advantage? Bringing sexual intensifying products to the mainstream from specialist stores and a small percentage of the adult population, using the national brands in those countries to launch under an established trusted brand
C. Gilligan & R. Wilson. (2003). p53
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Canada Communication Situation
Media Figures
Lifestyle products already on offer
17 million mobile phones in use
16 varieties of condoms Warm Lovin Lubricant Vibrating Rings Stimulating Gel
80 Television stations 22 million Internet users
Media Vehicles Available TV Radio Print Web Mobile Outdoor Advertising Sponsorship
Legal and Regulatory Factors: Advertising standards have many of the basic points that other countries in Europe and North America have, such as gender portrayal which deals with authority, decision making, sexuality, violence, diversity and language Advertisements that depict nudity and/or sexual content have more lenient advertising codes than countries such as the USA. Watershed hours are between 9:00pm and 6:00am No internet censorship, only local laws applies, dependant on if the website is hosted in Canada.
Context of Culture Explicit and direct communication and language Time is linear Gender Equity Mental process is also linear, logical and sequential If promotional material is translated between English and French, then the Lifestyles brand will look serious in doing business in Canada.
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CIA World Fact Book [online]. (6th of March 2008) XE.net [online]. (10th of March 2008) Advertising Standards Canada [online]. (2007)
Canada Communication Situation
(Continued)
Language Factors: Canada is officially a bilingual country, There are 2 official languages which are French and English. The defacto language in many parts of Canada is English, specific parts such as Quebec are a predominantly French speaking part of Canada Research needs to be undertaken into all the specific areas of the country and which language is predominantly used with the target markets. English speaking parts are greatly influenced by North American media and products. Native languages also make up 250,000 of the population, with 25 aboriginal languages in total.
Economic Factors: 99% of the population are literate, this means written communication is one way advertising and promotion can be done. 2.7% growth rate (2007 figures) $38,200 GDP Per Capita (2007 figures), a population with medium to high expendable income 5.9% unemployment rate 10.8% of the population are in a “low income cut off� belt 2.4% inflation rate 1.00 CAD = 1.01203 USD
Socioculturual Factors: 42.6% of the population are Roman Catholic, 23.3% are Protestant, 4.4% are Christian, 1.9% Muslim and 16% have none 23.1% of the population are obese, with a further 36.1% of people overweight Canadians have on average $3,918 in disposable income per year. The markets with the most disposable income are couples with children. This may be a market that is viable for sexual intensifying products. University Education is a steady increasing trait among Canadians, which means more qualified and educated people in the marketplace.
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CIA World Fact Book [online]. (6th of March 2008) XE.net [online]. (10th of March 2008) Advertising Standards Canada [online]. (2007)
Mexico Communication Situation
Media Figures 57 million mobiles in use 545 radio stations 236 TV Stations 22 million Internet users
Lifestyle products already on offer 9 varieties of condoms
Media Vehicles Available TV Radio Print Web Mobile Outdoor Advertising Sponsorship
Legal and Regulatory Factors: Mexico has not got a formal Marketing and Advertising code of practice; it does however use self regulation iniatives under the ICC Code in Advertising and Marketing Communication Practice.
Context of Culture: Communication in Mexico from their cultural background needs to be implicit and indirect, as this is the way they communicate, rather than the direct and explicit way that the western world is used too. Advertising featuring people, will need to focus also on what they are wearing, as in Mexico, dress and appearance is an indication of position in society and religion and so to garner target audience appeal, this must be synonymous with that market. Time is seen as elastic and relative, time is spent on enjoyment. Socially, Mexicans act to a group conformity, rather than individualistic and so this would need to be reflected in any marketing communication. Respect for authority and different genders roles in society play a big part of Mexican culture. That is not to say the country is sexist, but both males and females have a different part to play in society. Mentally, Mexicans think very laterally and accept things as they are.
Language Factors: Spanish is the defacto language English is also widely used The name of the product “Sensations” would obviously need to be translated, which is translated to Sensación and the literal translation of that is also Sensations. So the name would work fine.
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CIA World Fact Book [online]. (6th of March 2008) XE.net [online]. (10th of March 2008) International Chamber Commerce [online]. (2007)
Mexico Communication Situation
(Continued)
Economic Factors 91% of the population are literate, leaving 8% which are not, which could prove to be difficult in advertising to certain areas of society. Income distribution is highly uneven Has 12 free trade agreements with over 40 countries 3.7% of the population are unemployed with a further 25% underemployed. 13.8% of the population are under the food poverty line, asset wise, a massive 40% are under the poverty line. 10% of the highest end of incomes represents 37% of the country’s income percentage share. 3.8% inflation rate $7,800 GDP per capita, representing an extremely low expendable income, but with such disparity between the high 10% of incomes and the middle class, there is still a large market. Especially with a population of over 100 million people. The Mexican economy has had problems for a long time, which has meant that economic progression has been slow. 1 USD = 10.7978 MXN Pesos
Socioculturual Factors 76.5% are Roman Catholic; this might mean that promotion of the new product line will need to be more discrete than elsewhere. 6.3% are Protestant, 3.1% of the population have no region. Underemployment and higher wages are key issues, as well as trying to make southern states advance as well, which at the moment are completely impoverished.
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CIA World Fact Book [online]. (6th of March 2008) XE.net [online]. (10th of March 2008) International Chamber Commerce [online]. (2007)
The Netherlands Communication Situation
Media Figures 15.8 million mobile phone users 21 Television stations 14.5 million Internet Users 246 radio stations
Manix products already on offer 8 different varieties of condoms Sexual Enhancement Rings Intimate Lubricants
Media Vehicles Available TV Radio Print Web Mobile SMS + WAP Outdoor Advertising Sponsorship
Legal / Regulatory Factors SRC regulate the Advertising Industry and deal with complaints Advertising must not be misleading or untrue Good taste and decency are a must for advertising Advertisements must not arouse feelings of fear or superstitions
Context of the Culture Explicit and direct communication and language. Subtle messages also work, but getting to the point with advertising and messages is more effective in garnering attention in The Netherlands. Time is linear Gender Equity and Equality. Advertising that displays anything that would be seen as stereotypically would not go down very well. Mental process is also linear, logical and sequential, much like other western countries, including Canada.
Language Factors Dutch is the official language “Sensations” is translated directly to “Sensatie”, which its literal translation is also “Sensations”. So the wording works across borders. 640,000 people living in the north east, in a province called Friesland, speak a language called West Frisian. The language is constrained to just this portion of The Netherlands, but this will be something to think about if launching campaigns in this portion of the country. Especially when almost 65% of the population living there can read it, not just speak it.
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CIA World Fact Book [online] (6th of March 2008) XE.net [online] (10th of March 2008) Netherlands Advertising Education Forum (1987)
The Netherlands Communication Situation
(Continued)
Economic Factors 1.00 EUR = 1.54830 USD 2.8% growth in economy Unemployment rate is low at 4.5% 10.5% are living under the official worldwide poverty line 1.8% inflation rate 99% of the population are literate; meaning written communication in Dutch will be readable by almost all of the population. GDP per capita came in at $38,600. Slightly higher than the average European country. The majority of the population have a medium to high expendable income.
Socioculturual Factors 41% of the population have no religion, which is overwhelming for a country, but this also means that religion won’t be something that gets in the way of marketing and communications, like other countries. Religion of a country is one of the aspects that can juristic what is not ok and is ok to advertise. 31% of the population are Roman Catholic and another 13% are Dutch Reformed. The Netherlands has many aspects of its culture and customs that are inspired from neighbouring countries, so in a way it is a very European country, being one of the founding members of the EU.
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CIA World Fact Book [online] (6th of March 2008) XE.net [online] (10th of March 2008) Netherlands Advertising Education Forum (1987)
Uncertainty Avoidance versus Power Distance Hofstede’s 4+1 Dimensions Model
G. Hofstede. (1980)
A Full Analysis is on next page... 17
Analysis of Model Canada -
Power is widely dispersed among the population Relations amongst people are more egalitarian (equal rights for all) Canadians enjoy participating in the decision making process Canada is good at responding to future challenges Canada exhibits a high individualism trait, which means that people are mentally more selfcentred and feel little need for dependency on others. Achievement, performance, success, money and competition prevail over other traits. Canadians are perceived as short term orientated, the population will value personal steadiness and stability over looking at long term future objectives. Canadians believe in preserving history and continuing past traditions.
Mexico -
-
In Mexican culture, there is a huge disparity between the rich and the poor. An extremely unequal country. The target market in Mexico would be the top 10-20% of the high earners, as the difference between these people and the rest of the population, is just like the difference between the poverty line and aristocrats. Even though the disparities are huge, the culture of Central America means that the population accepts this very readily. Mexican people think very long term mentally and so have maybe a longer time span view on things than western culture. Structure, planning and playing it safe are key to their culture. The roles in society, as said previously in this report are different for each gender, so in advertising and communications, showing females or males in a stereotypical way would be something that would be fine if not normal to do. Whereas in a western culture like Canada, this would mean negative press and a public outcry.
The Netherlands -
-
-
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The population are a very equal society and the Dutch like being involved in decision based processes. This could lead to something that is tailored to their culture in the Advertising and communication for the product, such as interactivity and giving some power on decisions to customers. With Hofestede’s model, it is apparent that The Netherlands is very equal and balanced in its location on the matrix, although more towards Canada than Mexico, it is still a very balanced country in its population’s views and actions. Being more individualistic than anything else, Dutch people are more towards being for themselves than as a group.
Marketing Mix
Corporate Objectives of Marketing Communications -
Increase brand awareness in countries with new product offerings. Transfer familiarity with safe and quality condoms to new “Sensations” range. Increase profits Learn from mistakes in “test markets” to work out the right way to market these products in other countries in the future. Compete more aggressively with Durex and other rival companies in same product sectors.
Marketing Objectives -
Create awareness for sexual intensifying products and their benefits. Bring sexual intensifying products to mass market appeal Develop promotional strategies that competitively sell the new “Sensations” range. Capture new consumers who have not purchased from Ansell before. Develop a market segment for these new products and establish a base for future operations. Setup the marketplace to create “Sensations” into a worldwide brand.
Elements of the Marketing Communication Plan
Target Audience Messages Vehicles
Focus of the Marketing Communication Plan Product Product Line Company Image Specific Specific Broader Detailed Detailed Conceptual Targeted General General
C. Kennaugh (2008)
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Product The product that we are looking at launching is a new range of “Personal Sexual Intensifying Devices”; under the name “Sensation” (Translated directly into other target markets languages) Three devices will be launched at the start. - The G-Star - The Cricket - The Rider All are aimed at an adult market worldwide.
Function / Appearance / Packaging Aspects:
The G-Star -
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Will be targeted and advertised towards stimulating the G-Spot on females It’s been manufactured to be easy to hold and to stimulate. The colour is supposed to appeal to females, from its purple colouring. The button at the top turns the vibration setting on/off It is discrete and can be stowed away from view easily. The packaging will be in a standardised box. Packaging’s language will only be different, this to keep a consistent brand image worldwide for easier future expansion The packaging’s appearance has been picked because of its aesthetic values and the fact it will be appealing to women.
The Cricket -
Will be advertised and themed towards stimulating the clitoris on females. The Cricket is a tampon sized toy that vibrates when switched on/off by sliding the clip back and forth. It is designed to be very discrete, in that it can be taken anywhere, without raising eyebrows. The vibrations are very powerful and the battery inside is interchangeable, meaning it can be replaced by the user, giving the device a longer life than other vibrators in this size range. The packaging will be similar of that with the other toys in the range, but will be in a smaller package, as it is such as small device, using the same size packaging would be wasteful of materials. This could also be used in below the line marketing techniques in relation with the environmental impact of its packaging.
The Rider -
The rider is targeted towards couples/partners who are looking for something they both can enjoy in the bedroom. The device is smooth and contains a vibrator. It is aesthetically pleasing and can be used as a massager across the whole body. A very versatile device, that doesn’t have to be used by just one person The device has several “speed” settings that increase/decrease the vibrations depending on what the user enjoys mostly. The packaging again will be similar to that of the other products in the “Sensation” line.
Warranty/Service -
Battery’s are not covered under warranty. 12 month warranty is included. If a fault is found within 12 months, it will be replaced through a service centre. The product is non exchange once removed from packaging, unless there is a fault, otherwise there is a 30 day refund/exchange policy.
Quality -
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The quality of all three devices will be advertised and marketed as high quality at low prices. The quality should rival and even exceed that of the competition. We want to give out the connotation that the product is value orientated.
Price Pricing will be kept to match competitor’s similar offerings to be competitive. Durex for example has products that are priced at $20.00 as well as a vibrating ring at $10.00. (Basic pricing will be recorded in dollar value) Pricing is based on a few key elements, more clearly defined in the model below:
International Pricing – An Organisational Perspective Highlighted, are the areas that are most important concerning the corporate and marketing objectives initially, laid out earlier on. This will directly affect the sale price, which is detailed on the following page.
Turnover Volume & Value Profit Volume / Growth
Return on Investment
Market Presence
Corporate / Marketing Objectives Market Share
Country Markets Relativity to Competition Trans-National Markets A.L.A Olden (2007)
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Pricing Policies (Original Currency Conversion)
$10.00 (In USD) -
The Cricket
$20.00 (In USD) -
The G-Star The Rider
There are some issues with pricing, as the products are being sold in various different countries, price variation will occur. This is due to higher costs from variables such as... - Transportation - Distributor - Importation Taxes/Duties - Insurance / Packaging - Promotional costs in the specific country A geocentric strategy, whereby an appropriate degree of local pricing will be investigated and a system will be put into place to avoid any variations and fluctuations in pricing.
The Netherlands (at current exchange rate) â‚Ź6.50 The Cricket
â‚Ź13.00 The G-Star The Rider
Mexico (at current exchange rate) 108 Pesos The Cricket
216 Pesos The G-Star The Rider
Canada (at current exchange rate) $10.00 CAD The Cricket
$20.00 CAD The G-Star The Rider The prices backup the promotion of the products being centred towards quality and value. 23
XE.net [online] (10th of March 2008)
Place Communication is the factor that holds the channels of distribution together. It is ultimately the channel that persuasive marketing communication can be transferred, from organisation to customer. The Channels that are being looked at to launch “Sensations” include: - Selling Direct (Internet Store) - Distributors - Advertisement & Promotion Distributors have been chosen to be used instead of selling directly with retailers. This is because in the different countries that we are looking to launch these new products, there are many different retailers, not enough is known about the direct channels to use, other than direct sales. Distributors on the other hand, already have links with local retailers in that country and can leverage their size to promote the products we are trying to get into stores. Another reason for this is that risk is averted, for the mean time, so instead of concentrating on retailers, our resources can be instead diverted to more important aspects such as advertising and promotion. Primarily the places that we are going to get the distributors to be targeting worldwide for the sale of the “Sensations” range will be: - Pharmacies - Supermarkets - Adult Stores
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Promotional Mix One of the questions that needs to be answered is what is the message going to be, that is going to be targeted towards customers and how might we get that message to them? A problem with the promotional mix, especially in relation to advertising, it what sort of NOISE is there going to be on the way? Competitor’s offerings could get in the way here, or for example if we launched in a country where there was a lot of negative press about the sexual intensifying products, the brand could get literally pushed out of the marketplace. Following on the lines of a global integrated marketing communication plan, the promotional aspect will be the most costly at the outset. The goal here is to deliver the overall message in a relevant, engaging and cost-effective way in each individual market as well as trying to be consistent throughout all regions/countries.
Advertising Canada In Canada, Advertising will be constrained to several methods, which include: - Print (Women’s Magazines) - Billboards - Internet
Billboards: -
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Using discrete advertising, such as the poster below, this will spur people to wonder what it is advertising. There will be a website link at the bottom. The poster is meant to attract an older audience, being designed to be more mature. With the Lifestyles logo at the bottom, people familiar with the brand already will understand straight away it’s about something new and exciting.
Print: -
Targeting adult women’s magazines. Female magazines that have a higher sexual content will be desired to try and aim at individuals that have a strong sexuality. The main point of the magazines is to showcase the toys, maybe spurring a response from readers for the magazine to feature them in future issues. Magazine advertisements will run between the first 3-6 months. After teaser campaigns are launched to garner appeal and more information.
Internet: -
-
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The website will be the main focus initially, as there will be information about the products that will supplement teaser campaigns. Competitions and interactive features will be available also, as Canadians like to have a part in the decision process; this could be implemented into deciding future product launches that consumers have a choice over. The toys will be available for purchase online also, so people can order them discretely instead of going into a store.
Mexico In Mexico, Advertising will feature several Medias, which include, Billboards, Television, Internet, Print
Billboards -
-
A similar theme will run in Mexico, as with Canada and The Netherlands. Stereotypical advertising will be used, as the population are used to this type of advertising, depicting women and men in specific ways. So for example, wife stays at home, whilst husband is at work. Messages could be based around “Whilst the Wife is At Home, Give Her a Friend, Whilst Your Away� These types of billboard advertisements could be located around locations of pharmacies and supermarkets.
Television -
Broadcast in the evenings, using a continuity pattern. Message will be discrete Focused around relationships and becoming closer Messages will be based around familiar Mexican lifestyles, such as dinnertime, bedtime habits. The male in all of the TV Advertisements will always give it as a surprise to the women, these back up the masculinity of the population and the role of the man in society. All adverts will (even though not required to be) be shown after 9pm. When adults will be watching.
Internet -
Similar to other countries websites, without the interactive side of it, as previously researched is not as popular or regarded as something that people want to do. Online store will be present Advertisements on the internet will focus around getting the males attention maybe at his office, to entice him to buy it as a present for when he comes home.
Print -
-
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Located in females magazines. Unlike western countries print advertisements, it will be centred on promoting the women to show her husband/companion to buy one. Instead of being something the women would buy without consent of her partner. Language changes will be implemented, to keep consistency with other countries.
The Netherlands The Netherlands will use the following media’s - Mobile - Internet - Print
Mobile -
-
-
Due to the fact that Netherlands society, like to be integrated into a decision making process, this would mean that Interactive advertisements that valued their input would be a successful avenue to go down. SMS services, could be used to promote the new products SMS promotional tools could be used to get the local population involved in deciding promotional aspects, such as video sharing, why they love their new product, what colour people want the products in, etc... Print advertising and Internet will incorporate SMS services.
Internet -
The Netherlands is the most highly populated % of any country with Internet access to mostly all of its inhabitants. Internet will be playing a crucial role in advertising. Banner advertisements and relevant keyword searches on the internet will be used to entice customers. On social networking websites, such as Hyves, which is the most densely populated social networking website for Dutch people in the world. Especially for 18-30 year old audience. Competitions will be run to get lots of the “Sensations� range into the hands of the public. A Viral campaign could be used to start with, where people can enter a competition to get their hands on free samples before they go on general sale, this could mean a lot of peoples information can be collected and then used in the future to promote its launch.
Print -
-
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Sexuality with female is much higher than other countries, due to a more feminine culture, as well as very little of the population with faith, females are equal with men more so than other countries, which has let women get into high powered jobs. Female magazines are a good place to promote the toys, as they contain high sexual content, more so than other countries, such as Mexico. Designs of adverts will be in line with the rest of the world.
Sales Promotion Sales promotion will be concentrated on the first 3 months primarily, as to stimulate demand and interest in the product offerings.
Canada -
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The first month in the marketplace, to spur on sales to early adopters, we will promote a buy one for yourself and get 1 half price. Trying to spur female friends to buy one for themselves and one for a friend. This makes people talk about it, spreading word of mouth quickly. Competitions for the full product line will be promoted to gather contact details of participants, so as to promote the product further to these individuals, who will be more likely to use such a product. Distribution channel members, such as retail staff, will be promoted to actively push the toys to customers and to make them actively push these toys, incentives will be put into place, such as the retailers who sells the most toys, will win them and their staff a vacation somewhere for 2 weeks to say thank you.
Mexico -
Promotion is heavily aimed towards men, as they are the “bread winners� as it were in Mexico. Coupons will be given out at offices, or on streets. Giving the buyer a reduced price on the toys, when purchased at a certain time. The time would be after the majority of Mexicans come off of work. So as to garner purchasing the toys as gifts for their partners.
The Netherlands -
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As with the Canadian sales promotion, the first month in the marketplace, to spur on sales to early adopters, we will promote a buy one for yourself and get 1 half price. Trying to spur female friends to buy one for themselves and one for a friend. This makes people talk about it, spreading word of mouth quickly. Similar to Ann Summers parties in the UK. A tactic can be used, in which if friends can organise 10 or more friends. A person working under commission can come to their house and sell (at a small discount) the products directly there. SMS and Internet Competitions will also be used.
Direct Marketing All of the international “Sensations” internet stores will occasionally have small sales on items, bundling in condoms and lubricants or whatever is currently available under that company in that country. This will promote safe sex also. Packaging will be used in the direct marketing action. Things such as: - Information - Competitions - Other products in the range - Coupons Can be integrated onto the packaging when doing any promotions. Marketing can be taken below the line, with street advertising, in the form of people going out giving out flyers, or just small cards with viral, teaser campaigns.
Public Relations Usage of Public Relations will allow us to garner an appeal and communicate directly with our target audience. -
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Aspects such as letting the free flow of information out to the press and media will help gather attention. Gaining spots in magazines where they test the devices and give their verdict would be a good place to try and get into. Offering freebies and incentives to publishing companies that are able to get “Sensations” a spot. The internet is a large medium and so using modern ways in which to gain consumer attention, such as blogs and reviews.
Bad Press: -
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Can be used to our advantage In The Netherlands, any bad press, that the devices aren’t very good, can spur off viral marketing that will get consumers views and recommendations, so that second generation devices are tailored to be what the population wants. If this means that in different countries, the devices are altered slightly from each other, this may increase cost of production. In Mexico, bad PR might stem from men feeling that a device capable of pleasuring their wife/partner is not what they want as it might make them feel inadequate. Sensations can use “The Rider” to alleviate these worries, but being promoted for him and her.
As is written in Strategic Marketing Planning, an effective marketing strategy is based on four key dimensions:
2*
1. 2. 3. 4.
Being close to the market Developing valid assumptions about environmental trends and market behaviour Exploiting the competencies of the organization Developing a realistic basis for gaining and sustaining competitive advantage.
For points 2, 3 and 4 the use of the model “The Opportunity Matrix� will help us in creating valid assumptions, exploit the strength of the brands as well as develop a realistic basis for competitive advantage.
1*
The main point in using this matrix is to figure out what needs to be done to overcome any threats or obstacles and to take advantage of the opportunities that we are presented. Mexico for instance is in the low attractiveness part of the matrix, there are specific reasons behind this and all of these points can be overcome. - The average GDP and GNI per capita is very low, with only 10-20% of the population in the earning bracket that would have a good disposable income that would warrant the purchase of our products. - Even though only 10-20% of the population have a relatively moderate to high expendable income, which still accounts for around 10-20 million of the huge 100 million population. - The further 80% of the population, this can be seen as a potential opportunity for the future, with a brand extension into a value line of products that would be ideal for this part of the market. 31
1. C. Gilligan & R. Wilson. (2003). P89 2. C. Gilligan & R. Wilson. (2003). p54 -
Standardisation: The “Sensations” product range will follow a standardised approach in production, sales and more importantly communication. This is due to some very large advantages: - There will be reduced inventory; the products can all be manufactured in the same factory and follow a simplified production scheme. - Technical aspects of the creation of the toys will be easier to negotiate as there is no “adaption” in the production stage needed. - All the countries that it will be launched, will require different packaging, because of the language differences and so keeping the cost down on the production side of it, will keep costs down to the end consumer. - Marketing materials only need to be adapted slightly to take into account the language issues. - Overall this all means lower investment is needed as well as risk being averted to a degree.
Product Life Cycle
Product Life Cycle Analysis on next page...
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S. Hollensen. (2004). p505
Product Life Cycle In Depth Look: Market Introduction: -
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Profit margins in the first 6 months will not be as great as in the future, due to costs of product being high and price being low to be competitive with other company’s offerings, such as Durex’s Play range. Whilst introducing the new products to the market, volumes of sales won’t be large, stirring interest is the primary goal; sales will come in the future. Promotion and store placement will be the objective in this stage, getting the products into the hands of consumers, people who have bought these types of products before. This is the time for getting people’s attention. Some of the strategies that could be used, will be getting the “Sensations” range to people with a voice, such as product placements and females magazines that test such products. If we can get the product into Influential people’s hands, which will see that the products are great, this will spur first buyers into trying the products out themselves. Such as with Durex, when it launched its Play range of products. Subtle and discrete advertising would be good, to get people talking. Demand needs to be created before resources can be spent in communicating purchasing information to consumers.
Growth & Sales: -
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This is the stage in which the cost of product would have come down, enough to do more price promotions to get the product into the mass markets hands and into people who are first time buyers in this category. Public awareness at this stage would have gained momentum and so now consumers will know the products on offer, they may need enticing into the benefits of owning one. Competition with Durex and other brands would at this stage picked up. Durex will probably as a strategic move go into a pricing war with us. At this stage because of economies of scale, this could be sustained for a period. But quality and pleasure could be big selling factors, rather than price, if pushed aggressively.
Maturity/ Saturation: -
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Promotion can be bought down to small promotions every so often, as establishment in the marketplace is there. Costs at this point of the product will have come down a lot lower than what it was original, so larger profits can be had, from the mass market picking up on the product, after early adopters have spread through word of mouth about the products. At this stage new revised product offerings can start to be introduced that give the brands a differentiation and diversification. From research picked up from customers, new improved products that are better at stimulating can be bought into the marketplace.
Decline / Growth: -
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Growth will be attained from the new products hitting the mass market, after early adopters have spread the word. Older first generation of products will begin to fade out of the market, being replaced with newer ones. Promotion at this stage can be increased from that of the first line of products, after time spent in marketing and advertising communication in that country.
Conclusion This report has detailed the communication plan for launching “Sensations� into a worldwide market place. From initial research, to individual market research and then onto the implementation of the marketing communication plan, including the promotional aspects. This report is although not complete, it is more of a preliminary report into the aspects of launching this new product range. More research will need to be done on individual markets, as well as a more in depth media analysis, which takes into account all of the local avenues that can be undertaken. This report is very broad and not at all specific enough to undertake the marketing communications plan just from the back of this. As to the success of this product range, it is already apparent that other rivals are going down this avenue now and into the future and to keep competitive in the global market place, grabbing a hold of the market now rather than later will secure market share in this very interesting and full of potential segment. In the future this emerging market segment could be a very profitable business.
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