COMPETING WITH THE BIG

BRANDS
Gurpreeet Singh
Ujjwal Mehta
Rishab
Pankaj

INDUSTRY OVERVIEW
P83 billion in 2004
Projected to grow at a rate of 5% each
year
Beauty products at fifth globally(Nielson)
Facial care products(60% revenue)

INTRODUCTION
Founded in 1985(Philippines)
Personal care products
Bagong Pilipino, maka-Pilipino,
kayang tumapat sa buong mundo
Brand that endures
Hortalezas father owned a chain of 21 beauty
supply stores

RIVALS

MARKET SHARE (SKIN CARE)

18
16

200
1

14
12

200
2

10

200
3

8
6
4
2
0

Splash

Unilever

J& J

Sara Lee

TARGET MARKET
MASA
C1 and C2(Middle class)
D(Lower class)
E(Extremely low class)

CONTINUE
Concept of hiyang
Metrosexual trend
Heavily influenced by brand
endorsements by national celebrities.

BRANDS
RBH COSMETICS(1985)
Distribution
BIG HAIR(1987)
Became a fashion craze(P1 mn.)

RESEARCH INSTITITE
Established in 1997
State-of-the-art facilities and equipment
Began by hiring a lone chemist
Growth and innovation strategy
Innovative packaging/products

EXTRACT FACIAL CLEANSER

Launched in 1989
First facial cleanser based on natural
ingredients
Two variants: Avocado-for dry
skin,Cucumber for oily skin.
Low-budget television advertisements
Nationwide awareness for the first
time.

CONTINUE.
P40 mn.(sales)
Lost competitive advantage.

MARKET RESEARCH
Primary research
Consumer safaris
Focus groups
Secondary research
Research reports on the domestic and foreign markets published by other
sources
Potential gold mine(AC Nielsen)

MARKETING STRATEGY
Rational approach rather than
personal approach
Advertisement on popular
telenovelas
Below-the-line marketing
Guerilla marketing.
Continuous innovation

DISTRIBUTION
Hired 24 distribution companies
General trade accounts(78% revenue)
Small retailers(50,000 sari-saris)

Modern trade accounts(22% revenue)

department stores and supermarkets

CONTINUE.
Highest discount comparison
multinationals(8%)

GENERAL
TRADE(DISCOUNT)
Splash organisation
17.5
17.5%
%

Distributors
(List
price)

Retailers
10%
(List
price)

DISTRIBUTION(MODERN TRADE)
Transportation costs was borne by
Splash
offered 40 per cent of the list price
for margin, trade spend, promotional
spending payment for shelf space

SARI-SARIS
Variety store
Operated in shopkeeper's house.
basic commodities low costs.
buy units of the product
Allows credit purchases from its "suki
Strong social contact

EXTRADERM EXFOLIANT
Launched in 1991
Cleaning skin by removing dead cells
and emege new cells
C1 and C2 market
recording growth of 211 per cent in 1997
domestic competitor developed
20%less
Hired a celebrity

CONTINUE.
Defensive mode
Product was not registered with the
Philippines Bureau of Food and Drug
Safety
Strategy failed
Competitor wins market share

MAXI-PEEL

MAXI-PEEL
Hired more famous celebrity
endorser.
Small quantitis
Low price-D market segment

CONTINUE.
Unilever and Sara Lee introduced facial
cleansers
Competition
Alternative product toner
Positioned as a safer alternative and
convince
consumers to switch.
Below the line advertisemet and Over the
line advertisement

To suggest the skin peeling process

induced by
exfoliants caused long-term skin
damage.

SKIN WHITE

SKIN WHITE
Launched in 1996
variants for the whole body not only face
C1 and C2 market
Competition
Unilever,P and G, others local competitors

introduced whitening products

Silka introduced 15 per cent lower than
competing products from Unilever.

CONTINUE.
Introduced underarm whitening
cream
Filipino used liberal amounts of
underarm deodorant(hot country)
Wear sleeveless shirts and tube tops
29 % share whitening market by
2005.

BIOLINK

BIOLINK
Orange papaya-Hiyas(Mid 1990s)
Innovated a new green papaya as Biolink(2004)
SRI scientists discovered that the papaya enzyme that
stronger in unripe, green papaya.
Hired professional advertising firm
Priced 10% higher than multinationls

CONTINUE.
Competition
Spent huge money on advertising
Similar products by competitors
new entrants as competitive
threat(2005)

CONTROL AND TRICKS

Styling gels(2005)
Teenagers market
price-sensitive market(sachets)
10% revenue(2004)
price 20 % lower than Dep
Competition
Dep from Schwarzkopf & Henkel

KOLOURS
hair-coloring
primary consumers(adult women)
Price(30-50% lower)
Competition
Loreal

FUTURE STRATEGY
More focus on hair care products
To launch more hair care products
(shampoo and conditioner) next 3
years.
Competition
Pantene and Rejoice,Palmolive
shampoos, Sunsilk shampoos and
Creamsilk conditioners.

CONTINUE
Splash
Corp.
Internation
al

2004

2005

2006(F)

2007(F)

246

650

780

1008

Indonesia

157

400

480

576

Pharma

250

400

800

1000

Total

403

1450

2060

2584