MARKETING PLAN

VEET PARADISE

2/11/2013 I.T. Carlow

TABLE OF CONTENTS

INTRODUCTION ...........................................................................................................................4

RECKITT BENCKISER PLC .........................................................................................................5

VEET CUSTOMERS .......................................................................................................................6

COMPETITORS .............................................................................................................................7

DIRECT COMPETITORS ..................................................................................................................................... 7

INDIRECT COMPETITORS .................................................................................................................................. 8

COMPANY ......................................................................................................................................9

COLLABORATORS .................................................................................................................... 10

CLIMATE ..................................................................................................................................... 11 POLITICAL ................................................................................................................................................. 11 ECONOMICAL ............................................................................................................................................ 11 SOCIAL/CULTURAL .................................................................................................................................... 11 TECHNOLOGICAL ....................................................................................................................................... 11 ENVIRONMENTAL ..................................................................................................................................... 11 LEGAL ....................................................................................................................................................... 12

SWOT ANALYSIS ....................................................................................................................... 14

STRENGTHS .................................................................................................................................................... 14 Established brand name ............................................................................................................................ 14 Constant Research and Development ........................................................................................................ 14 Strong supply chain ................................................................................................................................... 14 Flexible brand ........................................................................................................................................... 14

WEAKNESSES ................................................................................................................................................. 15 Economic Recession in Europe .................................................................................................................. 15 Product Recalls ......................................................................................................................................... 15 Allergic Reaction ....................................................................................................................................... 15

OPPORTUNITIES ............................................................................................................................................. 16 More investment in Celebrity Endorsements ............................................................................................. 16 Extend their waxing line ............................................................................................................................ 16

THREATS ........................................................................................................................................................ 17 Intense Competition.................................................................................................................................. 17 Private label consumer goods .................................................................................................................... 17

Salon services............................................................................................................................................ 17

TARGET MARKET SURVEY ..................................................................................................... 18

SEGMENTATION ....................................................................................................................... 21

Stage 1: Segmentation ................................................................................................................................... 21 Geographical .................................................................................................................................. 21 Psychographic ................................................................................................................................ 21 Behavioural .................................................................................................................................... 21 Demographaphic ............................................................................................................................ 21

Veet Paradise: Customer Profile .................................................................................................................... 22

TARGETING ................................................................................................................................ 23

POSITIONING ............................................................................................................................. 24

MARKETING MIX – 5P’S .......................................................................................................... 25 Product ..................................................................................................................................................... 25 Place ......................................................................................................................................................... 25 Price ......................................................................................................................................................... 26 Promotion................................................................................................................................................. 26

Packaging....................................................................................................................................................... 26

BIBLIOGRAPHY ......................................................................................................................... 29

INTRODUCTION In our marketing project we will discuss the five C’s (Customers, Company, Collaborators, Competitors and Climate which includes a PESTEL analysis). We will also perform a SWOT analysis and comment on our findings. We will conduct a customer survey for market segmentation and profiles of our future customers and will show the results of that survey. We will examine the 5P’s and where our product is in relation to these. We will also project our future sales from the 5P’s that we have examined.

Our team consisted of four members at the beginning of this project but due to a conflict between our members it was decided to reduce the team to just two members. Our product consists of a home use hair removal wax for use by women. Our unique selling point is this product is exceptional in that it numbs the body part being waxed and so reduces pain before, during and after waxing. Our product will contain Lidocaine which is a topical anaesthetic which relieves pain by deadening the nerve endings of the skin. Lidocaine is used for the relief of sunburn, insect bites etc and so we feel that this would be the most effective pain reliever for our product. Lidocaine’s pain relief may last for up to one hour after application on the skin. Our customer survey showed that a number of people do not like waxing as it is too painful and messy and they would rather go to a salon to have their hair removed. Several products that we looked at while researching this product use creams to reduce pain after waxing which is not what our product is achieving. In this way our product is unique by having the pain reliever in the wax so pain is eliminated immediately. We have decided that as an alternative of creating a new product brand our product would be launched by an already existing brand name that is synonymous with hair removal and so decided to use the brand of VEET which is the number one selling brand of hair removal products and is produced by Reckitt Benckiser PLC. Our product is called VEET PARADISE and packaging is coloured…. We would envisage that a celebrity such as Leona Lewis would be the promoter of the female brand for advertising. If sales of the female brand prove to be profitable we would look to launching a male version of our product in the future. The name PARADISE was chosen as it represents relaxation, no worries, no pain in people’s perceptions and this is what our product is aiming to do for people who choose to use waxing as part of hair removal.

RECKITT BENCKISER PLC Reckitt Benckiser PLC was founded in 1823 by Johann A Benckiser in the Netherlands to make industrial chemicals. In 1938 it merged with Colman but each company traded separately and in 1924 became a fully merged company of Reckitt and Colman. Reckitt Benckiser’s headquarters are located in Slough, England. In 1985 it purchased Air Wick products. In 1987 the company acquired Ecolab, a worldwide branded consumer goods business. In 1999 Reckitt & Colman and Benckiser merged

to become Reckitt Benckiser. In 2005 the company launched a number of products such as Vanish, Finish 4- in-1 and Air Wick Freshmatic. It also launched Bang as Cillit Bang in Europe. In 2006 the company acquired Boots Healthcare International. Reckitt Benckiser Group PLC is one of the leading manufacturers of branded products in household cleaning, health and personal care in the world. Its products are sold in nearly 200 countries throughout the world. The company employs circa 32,000 employees and the average length of service for an employee is 13 years. (Reckitt Benckiser, Unknown) The company operates through eight product based divisions: health and personal care, fabric care, surface care, homecare, dishwashing, pharmaceuticals, food and other household products. The health and personal care division of the company manufactures and distributes antiseptics, depilatories and health care products. Over the counter healthcare products for the treatment of the common cold, flu, sore throat and cough, heartburn and constipation. Some of the key brands include Dettol, Clearasil, Nurofen, Strepsils, Gaviscon and Veet. The company has a worldwide quality control system in place as failures in quality could potentially lead to damage to the company’s reputation and trust in their products. The quality managers report to the Executive Committee. The European recession has not affected Reckitt Benckiser in that they have various independent companies throughout the world and so if one company is failing they can use the other companies to aid recovery of the original company.

VEET CUSTOMERS The market that VEET holds in the personal hygiene area is that 30 million women have used the hair removal products. (Reckitt Benckiser, 2012) 36% of salon customers prefer waxing as part of their hair removal compared to 34% for threading or 30% for laser treatments. (Institute, 2012) Veet have customers from all over the world and so are the number one selling waxing and hair removal companies in their field and it is still growing as the worldwide recession has become a source of people doing their own hair removal at home as it is cheaper than going to salons. VEET sells products that can be used by both men and women. These products can be purchased either online via the VEET website or in supermarkets and pharmacies worldwide. VEET have a very comprehensive website that has frequently asked questions from customers that answers all queries regarding hair removal. Products are for both normal and sensitive skin and so fulfil a market segment that other producers of hair removal will not. Usage of waxing products goes down as the customer gets older and it is also used by women in a higher social grade as these ladies will be more inclined to use hair removal products. (Reckitt Benckiser, 2012) Reckitt Benckiser’s customer base is diverse, with no single customer accounting for more than 10% of net revenue. Customers are multinational and more concentrated. VEET products are bought on a daily basis throughout the world as women and men fight the war against body hair and give consumers the opportunity to purchase creams or waxes. Waxes give the consumer a longer period of time without hair growth or a reduction and so most customers choose this option. Our product will also give consumers the opportunity to purchase the wax while enjoying a pain free experience. (Institute, 2012) The Veet website also has a ‘Solution Finder’ (Reckitt Benckiser, 2012) so you can find the perfect product for your needs whether it is your face, body, legs or bikini line. It also asks the consumer to select their skin sensitivity and desired effect. Our

product will be suitable for all these areas.

COMPETITORS There are a number of key competitors in the hair removal division of personal care. Most companies who give personal care for the facial and body areas include waxing as one of their key personal care products. Own store product labels are now becoming a competitor to the VEET brand as private labels are cheaper. Below are a number of direct competitors vying for the market of the waxing industries. They provide home waxing and salon waxing. Indirect competitors are the shaving companies who offer a variety of different razors with each claiming to leave skin hair free for up to four weeks.

DIRECT COMPETITORS Nair: Owned by Church & Dwight has a large range of hair removal products including wax and hair cream that are sold at very low prices worldwide. Their ultimate hot wax product is Nair Easiwax – it is a water soluble wax (washes off easily), easily heated in the microwave or on the stove. Suitable for all parts of the face and body, promises long lasting results. (Church & Dwight, 2010) Sally Ann Hanson It is the number one seller of wax hair removal products in America claiming the results lasts for up to eight weeks but there are no special attributes to their latest product as well as there are no aftercare or pain relief product from this brand available with the product or to buy separately. (LLC, 2012) NAD’S Part of Sue Ismiel & Daughters, Nad’s is an Australian family-owned company with a global reputation. (Nad's, 2012) Their Natural Hair Removal Gel uses cold wax

that is water soluble. Customer reviews of this product claim it is a good but that there are not enough strips in the box. (Boots.com, Unknown) Depilève Irish company that sells waxing products for professional use only. Their intimate wax line is formulated for sensitive areas of the body such as face, bikini and underarms claims to be “virtually pain free”. (Beauty Salon Supplies, 2010) Their website Bliss The name comes from a well-established spa that started selling its own brand treatments worldwide. Their waxing kit is the first-ever low temperature hair removal system. It can be used on any part of the face or body and claims to make hair removal comfortable, convenient and easy. (Sephora, 2013)

INDIRECT COMPETITORS

WILKINSON HYDRO SILK RAZOR This razor leaves your skin smooth and contains conditioners that hydrate your skin for a couple of hours after shaving. Wilkinson Sword claims that as you have hydrated it will protect your skin from irritation and will also leave it smooth. (Sword, 2013) BRAUN SILK ÈPIL RANGE These razors and epilators can be used on wet or dry skin. The Braun silk epil range is the number one selling brand of epilators in the world. They are designed to suit every woman’s needs. Removes even the shortest hair for ultimate, long-lasting smoothness. Leaves skin smooth for up to four weeks. (Gamble, Braun-shavers, grooming, body groomers, 2012) GILETTE – VENUS AND OLAY RAZOR Adjusts to women’s curves for a more comfortable shave and fewer missed hairs. Contains five razors for a smoother shave. Gillette have joined with Olay to give skin conditioning while shaving. (Gamble, Gillette Venus:Reveal the Goddess in You, 2012) REMINGTON WET/DRY SHAVERS Leaves skin luxuriously soft and ultra-smooth. A flexible trimmer system with special massaging comfort tips effortlessly glides over skin and remove unwanted hair. Remington have a number of ranges to suit every hair and skin type they are categorised and divided by different colours. The company also provide their razors as battery and rechargeable brands. The razors are a higher price than purchasing waxing products but customers also have to purchase batteries for their products. (Brands, 2013)

COMPANY

Reckitt Benckiser plc is a British multinational merged in 1999 that produces and distributes household cleaning and personal care products worldwide. In 2010 its sales recorded revenue of over £8.4 million. Its products are sold in 180 countries through over 60 operating companies. The group has strong brands across all its key product categories such as surface care, fabric care, dishwashing, home care, health and personal care, and food. (Reckitt Benckiser, 2012)

Their strategy focuses on Powerbrands, delivering innovations and high levels of quality and support. Their main brands are Air Wick, Calgon, Cillit Bang, Clearasil, Dettol, Disprin, Finish, French's, Gaviscon, Harpic, Nurofen, Strepsils, Veet and Vanish, this brands are responsible for over 65% of their revenue. Veet (Formally Imaac) is the leading brand in hair removal products, created in 1919 (Neet and Imaac) and currently manufactured by Reckitt Benckiser plc. The variety of products extend from depilatory hair removal creams to waxing strips that are globally distributed and used by over 30 million women and men worldwide. Due to Reckitt Benckiser’s motto of innovation and quality, Veet strives to develop new products to find the perfect way to remove unwanted hair, meeting the needs and expectations of consumers. (Reckitt Benckiser, 2012)

COLLABORATORS As VEET is already an established brand name the company suppliers are already in place worldwide by Reckitt Benckiser for the already established products on the market but rarely there are constraints on the company’s supply chain as demand for products increases or the production of new products delays the supply of products. Retailers have also been established and so to introduce the product on the market we would suggest that VEET Paradise is sold at a reduced price in order to break into the market. VEET already sells in supermarkets, pharmaceutical outlets and online and so this will continue in the future with this new product. Although other companies develop their own private label options to consumers Reckitt Benkiser maintains its relationships with its principal retail customers and through the efforts of its dedicated sales teams.

CLIMATE

POLITICAL

Failure to comply with local registration, manufacturing, sales and reporting obligations can expose Reckitt Benckiser to significant penalties including fines and imprisonment. Global operations include products that are highly regulated by local laws, regulations and government agencies.

ECONOMICAL

The recession has not affected Veet as more and more people are taking to waxing at home rather than paying for the service in a salon. With less money to spend on non-essentials such as hair removal services customers have been opting to the home based hair removal products. Reckitt Benkiser who produces the VEET product range happens to be one of the top 25 companies on the FTSE 100. The company had net revenue in 2011 of £9.48bn which has increased from the previous year. (Reckitt Benckiser, Unknown)

SOCIAL/CULTURAL

Trends and norms for hair removal products have increased due to the economic recession. Women and men are now using home related products. Men who take part in sports are increasingly using waxing products for their hair removal as it provides a longer result compared to shaving. Spending on these products for both male and female has increased. Reckitt Benkiser has seen a Net Revenue for the Hygiene market, which VEET is part, of £3,643m in 2011. (Reckitt Benckiser, Unknown) The company have a well established new product development process in place which includes the close monitoring of market trends and identification of relevant consumer insights. Prior to the roll out of new products, each undergoes a strict process of testing together with commercial trials in selected test markets.

TECHNOLOGICAL

The Group’s supply chain is deliberately relatively well spread in terms of geography and technology, such that the reliance on any one facility is minimised. Therefore, the company have disaster recovery plans in place if there is a problem with one of the company’s diverse production plants. (Reckitt Benckiser, Unknown)

ENVIRONMENTAL

The research and development departments of the company deal with the environmental impact of Reckitt Benckiser and ensuring that the products are safe for consumer use. They have reduced their carbon footprint by 75% while they hope

to reach 100% by 2020. The company gives charitable donations to SAVE THE CHILDREN which is a global charity.

LEGAL

REACh (Registration, Evaluation, Authorisation and Restriction of Chemicals) is the

regulatory body that came into regulation in the EU in 2007 and deals with the

management and regulation of chemicals. Companies have to register most

chemicals (i.e. ingredients) used in their products with this regulatory body that are

imported, manufactured or used in Europe. Reckitt Benckiser has registered its

chemicals used in the manufacture of their products both household and personal

with this body and ensures that suppliers have registered their chemicals also and

that full compliance with REACh is guaranteed. The company has also removed

certain ingredients from its products, mostly household products, to ensure that they

are safe for use by consumers whilst reaching regulatory compliance. (Reckitt

Benckiser, Unknown)

STRENGTHS WEAKNESSES

Established brand name Economic recession in Europe

Constant research and development Product recalls

Strong supply chain Allergic reaction

Flexible brand

OPPORTUNITIES THREATS

More investments in celebrity endorsements

Intense Competition

Extend waxing line Private Label consumer goods

Salon services

SWOT ANALYSIS

STRENGTHS Established brand name.

Veet possesses 80 years of experience and it is the leading brand name in the hair

removal area. Due to its quality and varied range of products Veet is the most

rmentioned hair removal brand and it is due to intelligent investment in advertising

and positioning. (Reckitt Benckiser, 2012)

Constant Research and Development

Being fathered by a worldwide known company like Reckitt Benckiser has a strong

advantage on Veet’s R&D departments. There are large investments from Reckitt

Benckiser in one of its largest growing power brands, Veet comes up with innovative

solutions to attract new market share and maintaining a high quality to already

existing customers.

Strong supply chain

Reckitt Benckiser sells more than 46 million products every year around the world.

(Benckiser, Reckitt) This is due to a very vast suppliers list that ensure Veet’s

products are made in the same quality each time to be distributed worldwide via

establishments or online, delivering guaranteed satisfaction to all its consumers.

Also due to their distribution system and advertising efforts being so consistent Veet

was able to penetrate consumers heads by displaying products in the most visible

way in retail shops and key sources, such as magazine and TV ads, guaranteeing a

good brand visibility.

Flexible brand

Leading by a worldwide economic recession, Veet’s market share has increased in

the past two years. That is due to the importance of personal hygiene on people’s life

therefore with high professional rates, consumers turn to Veet as an alternative

solution to dealing with their needs.

WEAKNESSES

Economic Recession in Europe

Europe has been in an economic recession since 2010. As Reckitt Benckiser’s revenue comes from 2/5’s of the European Union it is reliant on this market for part of its revenue and unpredictable negative economic developments may affect the revenue and profits of the company. As companies try to recover from this economic downturn they may increase their costs as a result of a shortage of raw materials or may fail to supply the company with the raw materials required for production. As exchange rates fluctuate in the recession this may limit the company’s targets for

production as raw material prices may be increased.

Product Recalls

Previously, Reckitt Benckiser has had to recall certain products such as Dettol and Gaviscon as these contained harmful, toxic chemicals for consumers and microbial contaminations. If it happened that VEET had to be recalled this could weaken consumer confidence in the brand and may lead to a loss in revenue and sales for the

company.

Allergic Reaction

Our VEET product will contain Lidocaine as its main pain reliever and if a consumer is allergic to the ingredients of Lidocaine this will prevent sales of the products to consumers. It would be part of the R&D department to look into alternative products that do not contain these ingredients so as to prevent customers changing to a different product. Also, people with varicose veins cannot get their legs waxed as waxing is very hard on the skin and may strip away the skin and expose the vein. It is also very painful with ingrown hairs.

OPPORTUNITIES

More investment in Celebrity Endorsements

Endorsing celebrities could give the company credibility and increase Veet’s sales.

Those types of endorsements have a long term impact on customers, since it

connects with consumer’s aspirations. Celebrities to represent Veet’s brand should

then be carefully chosen so as not to have a negative impact on the brand.

Also a vast supply of samples to beauty product bloggers, which is a growing

market trend, could improve sales due to customer’s high reliance on the blogger’s

opinion and because their “leader” would have tested the product previous.

Extend their waxing line

Following the move of a few other power brands, such as L’Oreal, Veet should

invest on a professional line to be used in beauty salons that would add even more

credibility to the already well established brand, since professional products have a

highest quality/luxurious feel to them, and amplify its market share by sharing

Veet’s expertise to different areas.

THREATS

Intense Competition

In the personal hair removal market VEET is the number one seller of hair removal products, however, they are experiencing competition from the Anne French company in this market. Many competitors focus on performance rather than on price and so VEET has to continually research, advertise and promote new and already established products to remain the number one bestseller of products.

Private label consumer goods

Consumers have been purchasing own label store brands as a result of the economic recession as the selection and quality of these brands has improved notably. Consumers perceive these brands to be of the same quality, satisfaction, value and performance as brands such as VEET has and so this will increase the profits of own label store brands. Europe and North America are the largest market for private label consumer goods. Increased preferences of consumers to the private labels may result in a reduction of VEET branded products and so can lead to pressure on the company’s revenues.

Salon services

Salon waxes are high quality and cause less irritation that home waxing. Salon waxes contain natural substances where home waxes may contain natural substances they also contain substances such as artificial fragrances and irritants and may cause further irritation to the consumer. Salon waxes are stronger than home waxes and can remove more hair in one go compared to home waxing. Home waxing can be messy when done by one person compared to salon waxing which is performed by a professional who has been trained to do the waxing. Entire leg waxing in a salon may take up to an hour to perform whereas at home it could take two hours for completion as you may require help for the upper part of your leg.

TARGET MARKET SURVEY

We interviewed second year students studying a Beautician’s Course in Carlow’s Institute of Further Education. They answered some questions as to what should be known before going for hair removal in a salon. This is something that people who wax at home are maybe not familiar with and think that it doesn’t matter when or how you do the waxing. The beauticians told us that you should exfoliate before waxing and that the hair should be between 2 -3 centimetres long. Hot wax is better for hair removal. Questions that should be asked of a new customer are...

Have they diabetes?

Have they any allergies to wax and the ingredients

Have they varicose veins – which can be worked around if needed.

The main customers would be between the ages of 20 – 44 years although the beauticians also told us that they would consider giving 14 year olds a home wax but if it was done in a salon they would have to be 16 years old. The most common side effects of waxing are...

Ingrown hairs

bruising

red spots

Appropriate after care would be...

Not to shower for at least 24 hours after and if a shower is required it should

be lukewarm

No friction

No deodorants

In addition we conducted a survey through Survey Monkey with the students of IT Carlow about waxing and waxing problems. Although a lot of the comments we received were from females we received some humorous ones from the males surveyed. The results are from one hundred respondents surveyed and the truthful answers we received. Our first question was to find out what percentage of respondents surveyed were Male/Female. 58.6% were female and 41.4 were male. Question two was to find out what age category we were surveying. As most of the students of IT Carlow are below the age of 20 we were not surprised that the age category with the most results was the age 18-25 category.

Our third question was what the preferred method of hair removal was. Our investigation showed that respondents prefer to wax compared to shaving. Waxing proved to be the most popular choice with 72.2% of the respondents choosing this option. Shaving had 28.9%, creams 3%, laser,5.2%. Our ‘other’ section which had a

response rate of 4% showed that respondents preferred to use tweezers, epilators and threading than the other methods of hair removal. Our next question was to ask why was waxing not a preferred choice. Our 59/100 results show that:

Pain was a big factor

Having to let hair grow to a certain length

Having to wait for appointments in salons

Too messy

Too expensive

Blocked hair follicles

In this question we asked what was the preferred choice home waxing or salon waxing. 73.5% choose to visit a salon and 26.5% choose to wax at home. Salon waxing proving to be a popular choice among our respondents. The next question asked how often respondents wax at home. Out of our 35/100 respondents mostly wax every 3-5 weeks. Our ‘Other’ answers were:

Only during the summer months

Every 2-3 months

Use laser treatment

Never

This question asked which area of the body respondent’s wax generally:

Underarm 38%

Face 28%

Legs 18%

Bikini 3%

What do respondents think of the process of waxing at home? Included in our other section were respondents found that waxing at home was:

Easier/quicker

More painful

Doesn’t work at all

Needs two people for effectiveness

Doesn’t do it at all at home

We asked what would make the process easier in the respondent’s opinion. 49/100 respondents answered and the ‘other’ category revealed that respondents would prefer:

Waxing to be less messy

etter quality products

Better disposable packaging

For it to be made easier

Our last question was if respondents find that waxing products are expensive?

Yes 58.9%

No 41.1%

We also asked females in the canteen what was their preferred brand of hair removal whether it was wax or cream:

Veet 48%

Nair 32%

Bliss 16%

Sally Hanson 4%

Through our market research we could then segment and profile our customers.

SEGMENTATION

The principle of segmentation consists of dividing the total market into distinctive groups of buyers who may require separate products of marketing mixes. (Cadogan, 2000)

Stage 1: Segmentation Variables must be chosen when segmenting a market. There may be many segments but the main ones are:

Geographical – The market is divided into different geographical areas such as countries,

regions, counties and cities. In VEET’s case the geographical segment is countries in that the

product is available throughout the world. Reckitt Benckiser’s geographical market is divided

into regions of countries throughout the world which have clusters of customers. They are:

ENA which consists of - North America, North Europe, Central Europe, South Europe

and Western Europe

RUMEA which consists of – Russia and CIS, Middle East, North Africa & Turkey, Sub-

Saharan Africa

LAPAC which consists of – North Asia, South Asia, Australia and New Zealand and

Latin America (Reckitt Benckiser, Unknown)

Psychographic – The market is divided according to the lifestyle, social class or personality

of the consumers in the market. With VEET the psychographic segment is the lifestyle of the

consumers. In this way VEET Home Hair Removal products satisfies this segment in that

middle to lower class consumers can now have the same benefits as high class consumers

who can afford to visit salons for their hair removal.

Behavioural – The market is divided according to the benefits required, loyalty, knowledge

of a particular brand. VEET holds the No. 1 market share of hair removal so the benefits,

loyalty and knowledge of consumers is extremely high as they realise the full impact of what

VEET means to them.

Demographaphic – The market is divided into age, group, sex, occupation, income and

family size. VEET’s demographic segment is the 18-25 age group, females who are middle to

lower class consumers as these segments are the consumers who are purchasing their

products and returning to them which is why it is the No. 1 best seller in the world.

We have chosen behavioural and demographic for segmenting the VEET Paradise

market. The benefits received from our product is that it is pain-free with all the benefits of VEET hair removal systems. Consumers are already loyal and have knowledge of the brand from previous experience.

Veet Paradise: Customer Profile

Female

Between 18-25 years old

Independent woman

Concerned about personal hygiene

Interested in trying new methods and or buying products for hair removal

Possibly had bad experience when waxing in salon/ 1st time user

Can’t stand the pain from the process

On a budget and doesn’t have time to make appointments for professional waxing but has

time to wax at home, at their own time

Possibly going on a holiday or has a new boyfriend/partner

Targeting Our target market would be the two different segments mentioned in segmenting. Our first segment would be demographic. This would be the age group of 18-25’s and increase this age group to include the over 25’s as we feel that maybe they have not gotten used to home waxing and still prefer to visit a salon. It is to be launched in the female version originally and lead to a male version in the future if sales proved to be profitable for the company. We would also like to see that consumers in the higher class demographic would begin to purchase our product. VEET paradise is a slight higher in price to the original VEET products but we feel that the benefits that arise from it are worth the higher price but still within the affordable price range for our consumers whether they be loyal customers or new customers just beginning to use our product. Our next segment would be behavioral. Consumers want pain-free quick hair

removal that is less messy. Available on the market at the moment is quick hair removal from VEET and its competitors but it is still painful. Consumers have to buy, if required, pain relieving creams or take painkillers before or after using products. Our product will provide pain-relief the moment the wax is placed on the skin thus making it easier to pull off the wax. Also, the applicator will be wider giving greater coverage for the user. Competitors do not offer this benefit, pain relief the moment the wax is placed on the skin, therefore, VEET has already a competitive advantage over their main competition. VEET also has company resources as it is already being produced and supplied by Reckitt Benckiser.

Paradise

POSITIONING A products position is the place it occupies in consumer’s minds and positioning is finding out what consumers want and need and creating a product to fulfill those needs. Our product will be considered to be of a high quality and a semi-high price but not so high that it will be out of reach of certain consumers income. Our product is unique in that it is painless hair removal wax which satisfies the needs and wants of our market survey. As VEET is already an established brand name it will therefore be available as soon as it is produced and testing completed.

Customers will be able to afford it as the price is not much higher than the other Veet product ranges.

Veet Paradise – Positioning

High Price

High Quality

Low Quality

Low Price

Marketing Mix – 5P’s The Marketing Mix is a strategy used and controlled by companies to satisfy customers in their target market. Also known as the 4P’s (Price, Product, Place and Promotion), the 5P’s when adding Packaging to the mix or the 7P’s when adding Process, Physical evidence and People to the 4P’s (normally related to services). The marketing mix is then developed and blended in order for the company to have a positive response from target marketing in relation to the new product or service.

Veet Paradise marketing mix consists of everything Reckitt Benckiser can do to influence its product’s demand. These possibilities are the main aspects of our product concept implementation.

Product

Product is the goods/services combination a company offers to a target market, also known as “bundle of benefits” in the marketing world. It identifies the core benefit of a product or service and main features that would satisfy customers’ needs and wants.

Veet Paradise’s main feature is that it is the first waxing product containing Lidocaine, a safe- use local anaesthetic that numbs the skin when the hot wax is applied to deliver a less painful process to our existing customers as well as attracting future customers. Since, during our market research part, development of this product it was discovered that by ___% out of the surveyed people found waxing too painful and due to this preferred other not so effective methods, such as shaving.

Veet Paradise would also feature a leaflet containing instructions given by beauticians or experts on the best way to apply hot wax to different parts of the body as well as illustrations to appeal to 1st time users. Additionally in the research it was discovered that ___% out of ___ don’t wax at home due to “messiness” that home waxing can cause. As we’re always thinking about how to make customers life’s easier when it comes to hair removal, Veet Paradise will contain a 7inch wooden spatula with thermometer (3 inches longer than previous product lines) 1, a water soluble product with no need for the use of waxing strips making its use more hygienic and less frilly.

Place

Place is the company’s activities through distribution channels that make the product available to its target consumers.

As Veet through Reckitt Benckiser has already established supplier networks it would continue to do so to ensure there is no shortage of supply to our target market. The main places to distribute Veet Paradise would be in cosmetic products retailers such as Boots and pharmacies (eg. Sam Mc Cauleys), also the distribution should be done in supermarkets (e.g. Tesco, Dunnes). Veet Paradise would also be available to be purchased online though Veet’s website as well as other authorised

websites.

1 See figure 1.1

Price

Price is the value given to a product/service to attract potential markets and also to generate profits for a company.

Due to Veet being the market leader in the hair removal products, we chose the price leader strategy meaning that we will set a price that our competitors will follow.

Since our current hot wax product can be purchased for €13.99 and the mentholated product to apply before waxing to slightly reduce pain can be bought for €8.50 approximately, we decided to set the selling price at €22.49 initially to be accessible to our customers and profitable for the company.

Promotion

Promotion is communicating to customers that a product is available and providing enough information for them to purchase it.

For above the line methods, we decided Veet Paradise would have teaser ads before the product is launched to catch people’s attention, consisting of just sound of waves and the background of a blue sky and the slogan “Want to know what beauty really feels like? Veet paradise” and join us on Facebook and the Veet logo, after that we decided to advertise with Leona Lewis on TV during key program commercial breaks such as Girls, 90210, Two Broke Girls, Sex and the City. Just a year after Paradise is launched, we will have celebrities endorsing our product in advertising campaigns on TV as well as in all major magazines. For the female range we will have Leona Lewis and for a possible future male range (-------). These celebrities were chosen because they were shown to have a good name of their own and passing credibility to our markets, since Veet’s name could be jeopardised by choosing the wrong people to represent a brand and this could be catastrophic for company sales.

For below the line methods we have chosen “beauty fairs” to promote the product before it is effectively launched, the Veet stands would consist of a “large tent” which would have the catch line “Welcome to Paradise” at the door, where people would be greeted and invited to walk in and relax to soothing music and try our product. We would include samples of products in magazines such as

Cosmopolitan, Woman’s Health and Heat. Since Veet’s social media page (Facebook) is becoming successful we would have competitions in which “friends” of the page who share Paradise’s post could win pampering kits containing Veet paradise and other goodies.

Packaging Packaging is how a company is going to design their product to make consumers aware and attract them to purchase it.

As it was noticed that hair removal product’s packaging are normally clustered with information and have standard boxes, we decided to innovate Veet Paradise and have stronger recycled paper for packaging with only the necessary and important information on the outside part of the box, which looks sophisticated and stands out more but also keeping RB’s environmental responsibilities intact.

The decision of the name of the product also had great impact on what the packaging looks like. One of the definitions of Paradise is a state of delight/a place of ideal beauty and loveliness. We asked a number of people what the name of the product would represent to them. To which all of them responded that the

representation of Paradise is a sunny beach with white sand. Based on these answers the chosen colours of our packaging is:

Top: Sky blue going to green-blue sea fading to white sand

Bottom: White Sand

Figure 1.1 Front of the box-packaging

Figure 1.2 Front of container

Paradise

Contains Lidocaine*

Paradise Pain Free formula – Contains lidocaine

When handed this project we were given the task of forming a group of three and to design a new product concept. After discussing with the lecturer we became a group of four. Our first meeting was to decide what product we were going to develop and everyone put forward their ideas. Some were worth further consideration some not

so good. We reduced the list to six for approval by our lecturer. After we had been given approval for the products for our marketing plan we chose to develop the painless waxing idea which was put forward by Mariane and instead of forming a new company it would be added to the brand of Veet which is produced by Reckitt Benckiser. Things were running smoothly for a couple of weeks but the lack of interest and communication became apparent from some of the members and it was decided after a lot of consideration to reduce the team to two. It was quite obvious that we should have discussed with the absent members about what the situation was when this first began This was frustrating as we had to start the project from the beginning. We split up the various tasks between us two. Mariane took the Company and Customers and Yvonne had the Competitors and Collaborators and we both worked on the Climate together. With the SWOT analysis we also split it between us – Mariane took the strengths and opportunities and Yvonne took the weaknesses and threats. After the divided parts were delivered it required that we both work together on the remaining parts of the project as deadline day was fast approaching. For the Target market we decided to do some primary research through Survey Monkey.com and by interviewing the beauticians in Carlow Institute of Further Education. This research was crucial to assist us on our findings for segmentation, target marketing, positioning and more importantly the profile of our customers. We sent the survey by email to all the student groups of Carlow IT and received over

four hundred replies. Unfortunately we could only gain access to one hundred of these replies for free but felt that this was an adequate amount for our primary research. Packaging, layout and editing were completed by both members as there was a lot of decisions to be finalised in this area. These were the main areas that we spent the final couple of weeks completing. The project was finally beginning to take shape and was looking in our opinion quite good and informative. There were only some minor disagreements but nothing so drastic that would bring the project to a stop as in “agreeing to disagree”. We felt that the project may even be finished before its due date since all the information required was in it. We were quite happy with the outcome and the amount of things that we have

learned about marketing. We will definitely be working together on team projects in

the future as we worked well together and completed the task on time.

Dr. Numb anaesthetic cream Lidocaine for pain relief

Bare ease hair removal Reckitt Benckiser. (2011). About us. Available: http://www.veet.co.uk/about-us.php. Last accessed 06 Dec 2012. The Carlton Institute. (2012) Hair Removal Survey. [ONLINE] Available: http://www.beauty-training.co.uk/content/news/hair-removal-survey.ashx Sally Hansen | Hair Remover Wax Strip Kit for Face. 2012. Sally Hansen | Hair Remover Wax Strip Kit for Face. [ONLINE] Available at: http://sallyhansen.com/products/hair-removal/wax/hair-remover-wax-strip-kit-face. [Accessed 14 December 2012 http://www.wisegeek.com/what-are-the-benefits-of-using-salon-wax.htm

Bibliography Beauty Salon Supplies, 2010. depileve. [Online] Available at: http://www.depileve.ie/depileve-superior-waxes.html [Accessed 07 January 2013]. Boots.com, Unknown. Wilkinson Sword Quatro For Women Bikini. [Online] Available at: http://www.boots.com/en/Wilkinson-Sword-Quattro-For-Women-Bikini-Razor_865538/ [Accessed 07 January 2013]. Cadogan, M. L. &. T., 2000. Make That Grade Marketing Revision. Dublin: ColourBooks Ltd. Church & Dwight, 2010. [Online] Available at: http://www.naircare.com/ [Accessed 07 12 2012]. Institute, T. C., 2012. Hair Removal Survey. [Online] Available at: http://www.beauty-training.co.uk/content/news/hair-removal-survey.ashx [Accessed 15 DECEMBER 2012]. LLC, C., 2012. Hair Removal Wax Strips for Hair. [Online] Available at: http://sallyhansen.com/products/hair-removal/wax/hair-remover-wax-strip-kit-face [Accessed 14 December 2012]. Nad's, 2012. Nad's. [Online] Available at: http://www.nads.com/about_us [Accessed 12 12 2012]. Reckitt Benckiser, 2012. Veet. [Online] Available at: http://www.veet.co.uk/about-us.php [Accessed 12 December 2012].

Reckitt Benckiser, Unknown. What its like at RB. [Online] Available at: http://www.rb.com/Careers/About-us [Accessed 15 January 2013]. Sephora, 2013. bliss Poetic Waxing At-Home Hair Removal Kit. [Online] Available at: http://www.sephora.com/poetic-waxing-at-home-hair-removal-kit-P260520 [Accessed 07 January 2013].

1. www.rb.com

2. http://www.managementstudyguide.com/market-segmentation.htm

3. http://tutor2u.net/business/marketing/segmentation-targeting-strategies.html