DKSH 2014, July, 10th Taiwan Challenging Case Hang Pack 15g New
Product Launch in modern trade Denise Chang Marketing Manager, DKSH
Taiwan Ltd.
Slide 2
DKSH Page 2 Background Fishermans Friend business was only in
pharmacy channel and sales are stable in 2011. 2010: 9,635 Lof
2011: 11,293 Lof Market expansion in 2012 into modern trade all
channels to explore volume growth opportunity. Market expansion
launched 15g hang packs into CVS, PCS, Hypermart in 2012 Aug.
Challenge Cases Hang Pack 15g New Product Launch in modern trade in
2012, Aug
Slide 3
DKSH Page 3 4P Mixes for market expansion Main ChannelsFamily
Mart/ OK/ Hi Life Watsons Cosmed Pharmacy Secondary channels PCS,
Supermarket, Pharmacy, Hypermarket Hyper market, Pharmacy. X
FlavorExtra Strong Sugar Free Lemon Extra Strong gm15g25g50g
PackagingHang PackFoil pack in TinFoil pack 25gX2 in Tin
RSPNT$38NT$85NT$125
Slide 4
DKSH Page 4 15g Hang Packs Competition PX and CVS requested
package size change to list in FF. Ricola, Nn Jiom, Valdas pack
size is much bigger than Fisherman Friends hang pack.
DKSH Page 6 Current Distribution by package Extra Strong
LemonExtra Strong Channel Type (outlets) Account Outlet No. Tin
(25g) Tin 25gX2 Tin (50g) CVS (2968) Hi Life1293VV Family
Mart800delisted OK875VV Hyper (103) Carrefour62 VVVV VVVV VV
RT-Mart22 A-mart19 S/M (71)Matsusei71VV Personal Care (899)
Watson's448VVV Cosmed364VVV Poya87 Department Store (28)
Mitsukoshi13VV City Super6VV Jason's7VV SOGO2VV PX
(667)PX667delisted Wholesaler (1633)Pharmacy1633VVVV Total6369
Slide 7
DKSH Page 7 TVC & Radio campaign Mini tin &
merchandising in OK CVS Merchandisin g in supermarket Merchandising
in pharmacy Consumer lucky draw promotion 2013 ~2014 Marketing Mix
2013 ~ 2014 FF Marketing Mix Rx channel: B1G1 CVS: B1G1 Hang Pack
B1G1 2012, Aug Hangpack new launch 2014 Feb.40g stop 2014Aug, 50g
new launch 2014 HP delisted in PX,Family Mart New Product
Development
Slide 8
DKSH Page 8 TVC
Slide 9
DKSH Page 9 Failure Cases Market expansion to all channels with
15g hang pack. PackageFlavor2011 Sales2012 Sales2013 Sales2014
Sales YTD Tin 25g&40g&50gOriginal11,293 LOF10,998 LOF2,957
LOF2,848 LOF Hang Pack 15g Original2,049 LOF5,521 LOF2,332 LOF
Lemon2,448 LOF7,263 LOF842 LOF Total:11,293 LOF15,595 LOF17,837
LOF6,022 LOF Growth % 38% 14% 19% Remark: 2014 monthly average
dropped 19% v.s. 2013, dropped 8 % v.s. 2012.
Slide 10
DKSH Page 10 Hang Pack Case Hang Pack dropped since 2013, Aug.
52.8% HP: PX single pack delisted. HP: B1G1. CVS: HiLife. Mini tin
CP CVS:OK. HP: PX Twin pack delisted. 40g Tin stop 50g Tin New
Launch Hang Pack new listing and delisting in modern trade key
accounts 2012, Aug, 2012, Nov. 2012,De c. 2013, May 2013, July
2013, Aug, 2014,F eb 2014,M arch 2014,April2014,June OK CVS new
list Hi Life CVS, Carrefor e Hyper PX mart Cosmed. PX delist twin
pack Family Mart CVS list List in PX, single pack list Watson s
listing PX delisting Family Mart delist lmn Family Mart delist
original. Accu outlet no. 8752252328326163416408345313864 3064 PX
returns, delisted.
Slide 11
DKSH Page 11 Key Task: Back to the Basics and rebuild FF
market
Slide 12
DKSH Page 12 1.To focus on pharmacy channel. Pharmacy channel
wholesalers will be managed by DKSH Health Care to leverage health
cares influence power for better in-store execution. 2.To
prioritize distribution expansion launching new zip lock products
in selected effective modern trade channels. PCS, Watsons, Cosmed.
CVS Back to the Basics Focus on Pharmacy Channel First. CVS, PCS
Core: Pharma cy
Slide 13
DKSH Page 13 Products / Price v.s. Channels in 2015 Main
Channels OK, Hi Life PCS, Watsons Cosemd Watsons Cosmed Pharmacy
Secondary channels Supermarket, Pharmacy, Hypermarket CVS, Hyper
market, Pharmacy. X FlavorExtra Strong Sugar Free Lemon Mint /
Sweet Lime / Grapefruit Extra Strong gm15g25g 50g PackagingHang
PackZip lock packFoil pack in Tin Foil pack 25gX2 in Tin RSPNT$38
(avg $19 B1G1 free)$49NT$85NT$125 License Issue?
Slide 14
DKSH Page 14 Shelf display for ZIP Check out rental /
merchandising 2015 Marketing Mix 2015 FF Marketing Mix Rx channel:
B1G1 CVS: B1G1 Hang Pack Depletion 2014~2015 Hangpack stock
depletion 2015 ZIP new launch 2014 Q4 25g (license issue?) New
Product Development ZIP Bus or print ads