THE PLAN OF LAUNCHING

BRAND IN EASTERN EUROPE

Authors:

Team name: Willing&Able

Team members:

Tetiana Ivanova

Mariia Titova

Yuliia Anishchenko

Eugeniia Khripunova

WE SUGGEST

• to add new line “Fresh Effects” for uncovered segment of our Target Audience ( women 15-24 years old)• to use not only such media tools like TV, Outdoor, Print, Cinema but add social media activities and different promotion activities like Celebrity endorsement and others.

9%

12%

15%

13%12%

12%

13%

14%

The Urban Population Of Women(15-54 years old) in UA (Target Aidience)

15-19

20-24

25-29

30-34

35-39

40-44

45-49

50-54

Regenerist (30 -54 age women)

Total Effect 7X (15 -54 age women)

Age Defying (20 -29 age women)

Fresh Effect (15 -24 age women)

Complete, Active Hydrating,Gentle Cleansers, Skin Adapt(15-54)

Olay’s product lines,that cover prime prospects

NEW

Target Audience(mass market)

Women 15-54 years old

Women want to be natural, attractive,

fresh looking

TARGET AUDIENCE, PRIME PROSPECTS (INCLUDING

DEMOGRAPHIC, FUNCTIONAL, PSYCHOLOGICAL NEEDS AND

INCOME) FOR EACH OF OLAY’S LINE

*based on list 2 “Willing And Able.xsl

SHOPPER & CONSUMER BARRIES

Perceived of unreasonable price

Principles & Prejudice

Perceived lack of need

Habits/ Predisposition to other brands

Concern about safety of product

Lack of trust for company, product or seller

Reasonable location of the trade channel

Low brand line-up

Lack of “shelf pop”

Unavailability of samples/catalog

Absence of consultant at the point of sale

Price of the product

PORTFOLIO

NEW

*based on list 1 “Willing And Able.xsl

Olay MarketingActivities

TV

Print

Outdoor

Cinema

Social Media

Promotions

Testing

Communication budget – 3,000,000€(where 150,000€ for social media and 200,000 € for promo-activities)

Sampling budget – 450,000 €

Fiscal Year 1(2013-2014)1 2 3 4 5 6 7 8 9 10 11 12Jul Aug Sep Oct Dec Jan Feb Mar Apr May Jun

Act

ual

Lau

nch

of

the

Ola

y

TV campaign Shot Shot Shot

Print Advertising, in press & magazines

Outdoor and billboard advertising

Ads for Fresh LineAdvertising for

Youth Lines

MicrositeIntegration into main site

Online advertising, promotion on fb pages, youtube, vk, twitter…

Nov

Press Releases

Launch of intensive PR activities

Celebrity endorsement

Sales Promo

PretestingSamplings

in pressSamplings

in pressSamplings

in press

TotalCost

500,000€

650,000€

150,000€

200,000€

450,000€

COMMUNICATION PLAN

1,200,000€

300,000€

THE BEST AWARENESS RATES AND TOTAL

MARKETING BUDGET

The best options with the highest awareness with current media tools is 80% with 3,000,000€ budget

*based on our own application for awareness calculation1- communication budget

But with 70% awareness we will spend 2,650,000€and will be able to spend 350,000€ for Social Media

and Promotions Activities

Total Marketing Budget

Media Tools Awareness Cost, €

TV 30% 1,200,000

Print 10% 300,000

Outdoor 10% 500,000

Cinema 20% 650,000

Social Media 15% 150,000

Promotions 15% 200,000

Total (CB1) 100% 3,000,000

Sampling Budget 450,000

Total Marketing Expenses 3,450,000

Total Marketing Expenses 3,584,860 $

*based on “Willing And Able.exe

SOCIAL MEDIA

Activity ResultBroads reach campaigns

Drove big results for shot periods

Facebook & Vkontakte, Live Journal & Twitter

Best driver for engagement, new visitors

YouTube Drives traffic and video engagement with minimal effort to manage

FB & VK Ads Inexpensive, precise targeting for awareness and marketing campaigns

Contests Increase fans and engagement

Content Quirky topics = best engagement& shares

Marketing Content Necessary, but lowest engagement – must find interesting spin to increase clicks

Product & Marketing Integration

Making social a regular activity in product & marketing planning is a process but will be big win long term

CURRENT MARKET POSITION vs.

COMPETITORS

Marketing Profile for skin-care market

Marketing Price/Quality Matrix

How many people will buy skin-care product of each

brand? L'oreal Paris

OLAY

Diademine

Lirene

Avon

Nivea

Garnier (L'orealCo)Черный Жемчуг

Others

18%

15%

15%15%

10%

10%

7%

7%3%

*based on list 2,3,4 “Willing And Able.xsl

TRADE CHANNELS

Perfumeries

Watsons,

Cosmo,

L’etual,

Perfume

Shop etc.

Creating the image

of high-quality premium product.

Target audience – women who

seek for beauty products

and actively use it

Supermarket/

Hypermarket

Metro C&C,

Silpo/Fozzy,

ATB,

Klass,

Rost etc

Entering

mass market

Pharmacy

Med-Service,

Zdorov’YA,

Velika

Apteka, etc

Positioning treatment

products for women

who seek for more

intensive skin care

CUSTOMER AND BUSINESS DEVELOPMENT

DISTRIBUTION: Linear Regression• Y: Weight Distribution – WD (%)• X: Numeric distribution – ND (# of stores)• Hypothesis: there is an association between the two variables; high rate of

numeric distribution leads to high rate of weight distribution

Channel Linear Regression R2 Conclusion

Eastern Europe WD = 43,62 + 0, 000906 * ND 0,959 95,9% - correct forecast

Perfumery/

Household

WD = 44,15 + 0,002576 * ND 0,996 99,6% - correct forecast

Supermarket/

Hypermarket

WD = 82,71 + 0,000821 * ND 0,589 ×58,9% - correct forecast

Pharmacy WD= 36,41 - 0,00368 * ND 0,18 × 18% - correct forecast

Distribution targets by channel:

Eastern Europe:

ND (X) = 40000; WD (Y) = 79,85

Supermarket/Hypermarket:

ND (X) = 10400; WD (Y) = > 66

Perfumery/ Household:

ND (X) = 20800; WD (Y) = 97,72

Pharmacy:

ND (X) = 4800; WD (Y) = > 39

Assessment made by the

analyzing the data of

competitors:

•Competitor 2 has ND= 9591;

WD=90, so with ND 10400

we are able to cover trade for

not less 66% in

supermarkets/hypermarket;

•Competitor 3 has ND=3178;

WD=39, so are able to cover

trade for not less 39% in

pharmacies.

RIGHT PRICING

5-20%

Depends on:

• unconditional

volume discounts;

• the retailer's

margin

5-7%

Depends on:

• discounts;

• allowances;

• listing fees

PRICE POINTS

Back

Margin, %

Front

Margin, %

Price Index Discription

5 5 1,1 High-traffic stores, SM/HM, consumer chose the product

without consulting

6 10 1,16 Pharmacies, low rate of consultancy, promo activities

provided by stores

7 15 1,22 Beaty stores, qualified personnel who can consult consumer

in case of need and to help with right choise, promo

activities provided by stores

5 20 1,25 Premium perfumeries, high qualified consultants

SHELVING/PLACEMENT

We suggest:

• place lines Olay Total 7X Effect and Olay Fresh

Effects for prime prospects within consumers eyes;

• place Olay Fresh Effects in that part of skin care

section where skin care product for young women 15-23

is located (for example close to NIVEA Pure Effect)

• place on higher shelf as it is more expensive and

intensive product line;

• place Olay Age defying on the shelf under Olay Total

7X Effects;

• place less intensive and cleansering skin care products

on the lowest level as that products line are auxiliary.

LOCATION IN STORE –

skin care products section

Olay Shelf Share, % -

range between 7% and 10%.

Reasoning:

1) Olay needs to have competitive benefits and

not to get lost in the aisles in the store;

2) As Competitor 4 has high rate of Shelf

Share we can assume that this competitor

has a wider assortment and this brand is

our main competitor

MERCHANDISING AND DISPLAY

STRATEGY

PROMO

STRATEGY

POSM MENU

HM/SM & HFS

Perfumeries & Beaty stores

(Large&Small) Drugstores

∑

Numeric

Distribution

per 1

store

Total

number

Numeric

Distribution

per 1

store

Total

number

Numeric

Distribution

per 1

store

Total

number

Display 0 0 0 300 1 300 0 0 0 300

Counter Display 5200 1 5200 5200 1 5200 2400 1 2400 12800

Glorified Testers 0 0 0 5200 1 5200 2400 1 2400 7600

Stopper Horizontal 10400 1 10400 10400 1 10400 4800 1 4800 25600

∑ 15600 21100 9600

Olay product should be highlight on the point-of-sales

in order to be noticeable from competitors.

We suggest to pay attention to standing out of product

in Perfumeries and Beauty Stores where the

competitive environment is higher and in HM/SM

where the traffic is highThe beginning of the

year

Throughout the year

HM/SM & HFS Sampling On pack promo, coupons;

price off; rebates;

Perfumeries &

Beaty stores

(Large&Small)

Sampling Price off; free goods;

Drugstores Sampling Free goods; price off.

Olay Display Share - 15-18%. Reasoning:

1) Olay needs to highlight the product in order to catch

consumer eye;

2) Olay products have the wide assortment in order to this it

should be noticeable by potential consumer

SUPPLY NETWORK OPERATIONS

Supply

from the

plant

w1 w2-8 w9 w10 w11 w12 w13 w14 w15-18 w19 w20-23

MSU 9,221 0 3,1031 0 0 0 0 13,18 0 12,726 0

Cases 11383,95 0,00 3830,99 0,00 0,00 0,00 0,00 16271,60 0,00 15711,11 0,00

Pallets 384,21 0,00 129,30 0,00 0,00 0,00 0,00 549,17 0,00 530,25 0,00

Cotainers 8,00434 0 2,693663 0 0 0 0 11,44097 0 11,04688 0

Pallets on

ground 384,21 384,21 513,50 441,42 331,42 174,34 61,28 497,39 45,17 462,37 10,14

Deman

d from

custom

ers

Cases 2135,80 3259,26 4654,32 3349,79 3349,79 13399,18 3349,79 13399,18

Pallets 72,08 110,00 157,08 113,06 113,06 452,22 113,06 452,22

MSU 1,73 2,64 3,77 2,713333 2,713333 10,85333 2,713333 10,85333

MARKET PLANNING ASSIGNMENT

PhD ASSIGNMENTCost elements Kiev DC Ordzho DC

Inbound transportation, USD/year 0 72522,75

Storage costs, USD/ year 2116,614 705,538

Palletized Handling (inflow+outflow), USD/year 17093,68 9205,278

Case picking, USD/year 23917,53 7118,31

Outbound transportation, USD/year 72567,96 82818,33

TOTAL 115695,8 172370,2

According to

following

assumptions KIEV

DC is the most

optimal warehouse

Finance&Accounting Department

Brand Financials Year 1 Year 2 Year 3 Year 4 Year 5

Volume,t.pcs 43 456 45 629 47 454 50 776 47 729

Price,t.$ 14 163 260 222,03 15614991403 16889172540 19336408621 17085654619

Sales Revenue,b.$ 615 478 636,21 712 496 443 793829595,9 996 849 570,20 803 041 595,90

Cost of Goods Sold,t.$ 325920,2475 342216,2625 355904,9175 380818,26 357969,165

Gross Margin,t.$ 615 152 715,96 712 154 226 793473691 996 468 751,94 802 683 626,74

Marketing Expenses,t.$ 3 585 3650,3068 3796,31912 4062,06144 3818,33776

Organization Costs,t.$ 200 200 200 200 200

Distributor margin,t.$ 55406,44208 58176,76463 60503,83598 64739,1042 60854,75805

Profit,t.$ 615 093 524,66 712 092 199 793 409 191 996 399 750,77 802 618 753,64

*VAT and NPV are not include

**all accountings are based on the opensource information

***the volume grows on the 5,4,7% the 2,3,4 years and it decreases on 6% 5 year

What we suggest about purchases1. The purchases will be made from Poland (the factory in the city Lodz) by fixed lots (Mercantile purchasing). One person of our team will be able to do all purchasing operations.

2. Key targets are: to minimize expenses, find a reliable supplier.

3. Purchases are close to Supply Network Operations. Also it connects with Marketing Department.

the price will be minimized if we can buy our product from Poland, because their factory has all recourses and logistics costs will be optimized because Poland close to Ukraine

Purchases have one of the most important roles, because we have no factories which produce Olay’s products

The main strategy is Supplier Optimization (The company chooses an optimum mix of vendors who can provide the best prices and terms. This process usually means that the less able suppliers who cannot provide a quality service at the terms and prices required are discarded.)

Human ResourcesTask 1

to provide the opportunity of participation in a various projects aimed at the development ofleadership skills.

TASK 2

For the reason that team have not formal product management qualifications it is necessary to conduct several activities:

opening skills training which informs the team with the Olay products, with the list of its features, pros and cons of this product, and determine how it contrasts with competitors;

additional skills training during the work on the Olay launch under the guidance of project leader which has tremendous experience on the subject;

functional skills training which develops skills and knowledge.

In order to increase the satisfaction in "relationship with manager" field we suggest:

to conduct corporate training which develops management skills;

to conduct team building events such as team building and team spirit;

Human ResourcesTask 3

Organization Costs

incorporation and

underwriting fees and

promotional fees

costs of printing

stock certificates

other payments necessary to

bring the corporation

into existence

costs include the payment of an

incorporation fee to the state

the payment of fees to attorneys

payments to promoters

legal fees

Human ResourcesTask 4 Task 5

In order to address the growing concern ofthe project leader in CBD and theorganization in general we suggest:

to provide the control over the informationsharing, information channels (e.g. thedevelopment of schedule, personal meetingsof leaders of the departments);

to review the level of payment based on thestudy of the market;

to provide employees benefits; to provide flexible work hours, working at

home and the additional holiday; to increase the commitment to the company

by explaining the organizational mission,values and strategies, timely and honestcommunication with employees focused onpersonal relationships, providingopportunities for employees to express theirown ideas about improving work systems;

to plan work tasks so that increase thediversity of skills, self-sufficiency andfeedback;

to provide the opportunities for the careergrowth by consulting about the developmentof the career and introducing moresystematic events for the identification oflabor potential.

It goes without saying that there is amisunderstanding between thedepartments of the organization as theyhave different interpretations of the maincriteria for success of the organization. Inorder to strengthen the functionalrelationships between the departments,we propose to increase the effectivenessof organizational communication:

to regulate the information flows via thecreation of a data bank, an internal marketinformation and tracking the locations ofinformation overload;

to use internal information systems (e.g.newsletters via the e-mail, online events).

to establish a feedback system between thedepartments;

IDS Information &Decisions SolutionsTo support Olay launch we suggest:

to provide a single source forprofessionally managed networkand communications costs andreliability;to consolidate and streamlinemulti-site, multi-vendorwarehousing networks in anylocation;to provide a vendor selection andmanagement for consolidatedbilling and process standardization;to provide complete systembackup and disaster recoveryfunctions;to provide single point of controlto standardize processes;to provide enhanced visibility andreporting capabilities.

eCommerce Supply Network Solutions

to create customized reports;

to provide remote access to

track shipments, dock schedules,

ect;

to provide the check real-time

inventory levels;

to provide seamless integration

to vendors needing order access;

to consolidate multi-site, multi-

vendor warehousing networks in

any location, including third-party

facilities;

to provide the request shipments

quickly for new customers;

to provide comprehensive cost

analysis of all logistics services.