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Analyzing Strategic Marketing,Schweppes Raspberry Ginger Ale

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Introduction - SCA’s global brand, TENA

SCA is the world leader in incontinence care product. The International Continence Society defines incontinence as any involuntary leakage of urine. SCA’s global brand, TENA, comprises a complete product portfolio of incontinence products range from large absorbent incontinence protection in a pant model to ultra-thin protective pads. SCA creates it’s value through knowledge of consumer and customer needs, regional presence and efficient production. SCA products are produced nearly exclusively from renewable and recyclable materials. Equal quantities of recycled and fresh wood fibres are used in production.

Part 1: Marketing Environment Audit

1.1 Demographics

The age structure for the past four censuses (in 1970, 1980, 1991 and 2000) shows that the proportion of younger age groups (15 years and below) is decreasing, while the proportion of elderly is on the rise. The median age was 17.4 in 1970, 21.9 in 1991, 23.6 in 2000 and is projected to increase to 27.1 in the year 2020. Within a period of thirty years (from 1991 to 2020), the median age will have increased on average by 1.7 per decade. The old-age dependency ratio is expected to increase to 15.7 in 2020 from 10.5 in 1970. Over a period of 50 years, the median age of the Malaysian population will increase by 10, and the old-age dependency ratio by 5 (Department of Statistics, Malaysia 1998). By the year 2020, Malaysia will be a mature society with 9.5 per cent of its population aged 60 and above. The proportion of population 65 years and over for Malaysia in Census 2000 was recorded at 3.9% compared to 3.7% in 1991. Consequently, the median age for Malaysia as a whole increased from 21.9 years in 1991 to 23.6 years in 2000. All these different age parameters point clearly towards a continuation of the trend of population ageing in Malaysia.

In spite of this, Malaysia’s ageing population has resulted in an increase in elderly care services, especially in incontinence products, which brought about a “boom” in sales in 2005, despite a price increase. Research by Malaysian Medical Association found that urinary incontinence is one of the major problems affecting the elderly population but often little amount of attention is given to this problem. The prevalence of urinary incontinence in the elderly population varies from 30% to 50% according to age. It was reported that more than one-third of women over the age of 65 years have some degree of incontinence and in men the prevalence ranges from 3-11%. This condition often goes untreated because of the misconception that the disease is part of the normal ageing process. Incontinence is a problem that is grow rapidly as populations become increasingly older. "It's NO secret that demographic development and trends pose a great deal of opportunities to SCA incontinence care product.

1.2 Economic

The Malaysia ageing market can be regarded as highly potential. Consumers aged 45-50 years are among the most prominent in the coming years, with vast markets and products to be offered. These seniors have high disposable incomes, making it a highly attractive and profitable segment. The reasons behind this income trend include lesser dependents, higher earnings, inheritance and their decreasing long term financial payments. With the growing numbers of the ageing population, Malaysian manufacturers must be at par and to be prepared to the senior’s sensitive changing lifestyles.

In global market, incontinence products is accounting for the fastest growth, affecting between 5 and 7% of the world’s population. These products are used in institutional care and are also sold directly to consumers at retail outlets and through pharmacies and shops specializing in medical supplies. Market growth is driven by demographic factors, primarily aging populations, but also by increased buying power. Wider acceptance of incontinence problems, increased availability of the products in retail outlets as well as innovation and brand building are also factors driving growth.

Today, SCA is the dominant player in the area of absorbent incontinence protection, with 26 per cent of a market that has a total turnover of 5 billion euros. SCA’s incontinence products are sold under the TENA brand in 90 countries. Statistic shows that approximately one woman out of four will be affected during her lifetime; the condition is more common than normal fever. SCA noticed that consumers have become more demanding as they want to live their lives as they have always done. To meet these demands, major investments are being made in product development and design.

1.3 Environmental

Manufacturing incontinence care based product requires quite a significant amount of natural resources and energy. The typical SCA product comprises different types of wood fibers. In addition, small amounts of inorganic and organic fossil materials are part of the mass flow from SCA. Renewable resources (fresh wood fiber and recycled fiber) account for the major part of the total weight in an SCA product. Inorganic materials (kaolin, clay and calcium carbonate) are used as fillers and coating pigments to satisfy customer demands for high incontinence care product quality. Synthetic materials are used in high-absorption personal care products to enhance quality and functionality, as well as in special high-protection packaging.

In generally it is considered a 'dirty' industry which produces lots of pollutants, and SCA is proud of its impeccable environmental record. SCA's Environmental Committee has created a series of horizontal networks to address emerging environmental issues, adapt to changes, benchmark and support the implementation of environmental policies. The networks identify and investigate issues, prepare solutions and disseminate SCA Position Papers that serve as guidelines to all employees. An important input to the networks is the data collected by SCA's Resource Management System (RMS) on resource utilization and emissions. Some of the involved networks are:

* Waste Management Network: which deals with waste management systems and statistics to manage and control manufacturing- waste flows.

* Resource Management System (RMS): collects all technical data and supports all other networks with manufacturing data and information (tabulations, verification, analysis and statistics).

* Environment Management Network: which deals with environmental management systems, environmental labeling, environmental standardization, LCA techniques, policies and exchange of experience.

* SCA Product Safety Network (SPSN): the network deals with the use of chemicals, product safety, microbiology and fiber in contact with food. addition, the yearly net growth of SCA forests absorbs about one million tonnes of carbon dioxide per year.

1.4 Technological

SCA pioneered the technology in manufacturing high-absorption product. The TENA InstaDri Skin-Caring System is just the latest in a long line of TENA history of product research and innovations to promote good skin health through better incontinence management. SCA recognized early on the skin breakdown from excessive exposure to liquids and contained humidity is a major concern in the care of incontinent patients and residents. That’s why, as far back as 1987, the TENA brand, then called Promise promoted the skin caring brief with the “Breathable” side panels

Since then, SCA made skin-caring leadership a priority not only with skin-caring product advances, but also with clinically trained sales people. They understand how to help TENA customers with incontinence management best practices to improve skin care outcomes. And as TENA customers already know, their best clinical and business results come from the right products combined with right expertise.

1.5 Cultural

Incontinence is not life threatening but it has a huge impact on a person's quality of life and is associated with social and psychological stigma. It is anticipated that there will be a continued rise in the incidence rate over the next 10 years, with a significantly higher percentage in the elderly. It is important to understand the aspects of care and management of the symptoms of incontinence. Products for managing incontinence are needed to improve the quality of life. In facts many of the people who suffer from urinary incontinence may never seek help or advice. This is often due to embarrassment about discussing an intimate subject, a lack of understanding, or fear of knowing about the cause or the treatment required. Their life-styles can often become adversely affected; this can mean they stop going out just in case there is no toilet nearby, they stop going to aerobics, stop going to the movies, don’t visit friends like they used to.

SCA knows that many people feel uncertain about what to do. For those that do seek help or advice, the condition can, in most cases, be cured or at least considerably improved. There is a TENA product for every need. TENA products are designed to prevent leakage and, with our odour control, inhibit odours. You will discover that TENA products are thinner and softer than most other products yet still extremely absorbent. Openness and a greater understanding of the situation will definitely help.

1.6 Competitors

SCA, incontinence care product has many competitors in market. Below are some common product found:

• Pureen Inco Adult Diapers

Made in Malaysia (PJ)

Official sponsor of (FM Continence foundation of Malaysia)

• Certainty Guard / 123 Dispo incontinence Adult Diapers

Manufactured by DSG Adult Diapers (Thailand)

Distribution by Disposable soft goods (M) Sdn.Bhd (Subang Jaya)

• Dr. P Adult Diapers

Manufactured by Ever Beauty Corporation

• Anan Adult Diapers

Manufactured by (Philipines)

Distribution by Nibong Tebal Enterprise (M) Sdn.Bhd (Pinang)

1.6.1 The Major Competitor:

• Certainty Guard / 123 Dispo Incontinence Adult Diapers

Product Concept

Adult incontinence products are designed for the convenience of males and females having various degrees of incontinence. The basic concept of most adult incontinence products is to prevent leakage of liquid and solid by absorbing the moisture into a highly absorbent inner core and retaining the soiled contents within an outer moisture proof back-sheet.

Objective

(1) Affordable

(2) Convenience of diapers which are disposed of after one use.

(3) To reduce the risk of chapping ("diaper rash"), which often occurs when moisture from a soiled diaper remains in contact with the baby's skin.

Strategy

(1) Marketing strategy

Delivering Quality, value-oriented products which offer good profit margins, combined with a high level of service, rather than attempting to mass market its products in competition with the industry leaders.

The Company believes that its attention to raw material costs and manufacturing efficiency, combined with careful control of advertising and promotional costs, enables it to produce and market value-oriented products at competitive prices.

(2) Growth Strategy

The Company's growth strategy is to target its branded products at selected sectors of mature markets.

DSG take a broader marketing approach in less developed markets where there is a high rate of growth in disposable diaper usage.

The Company believes that its manufacturing facilities in Asia (Malaysia) will enable it to participate in the expected growth of those markets, because there is high chance in there adult diaper market especially those who are facing incontinence problem.

(3) Private label partnerships

The Company will continue to target other major retailers to establish new profitable private label partnerships in all of its product categories. The Company has positioned itself very well with an advanced line-up of premium products that are better suited to meet the needs of retailers than most of its competitors.

(4) Company established a strong sales and distribution

In other markets such as Malaysia, Indonesia and Singapore, the Company faced severe price competition in both premium and economy products segment coupled with a television advertising program from its competitors. The Company expects these difficult conditions to continue. With effect the year 2003 it initiated a series of marketing programs including product development, expansion in distribution channels, in-store promotional support and advertising campaigns. All these activities were implemented.

Strength

(1) Continues product innovation

Company will continue to explore innovative product opportunities that will make a positive difference in this category and bring better solutions to the incontinence user.

(2) Providing the best EDLP

The Company has maintained its strategy of providing the best EDLP on its ""CERTAINTY" brand, offering the consumer "the best product for the price" all the time. The Company provides consumers with quality products at affordable price, unique product features and consistent value.

Weaknesses

(1) Seasonality

There is no significant seasonality impact on the Company's business because DGP feel this Adult incontinence diapers is not a seasonal product. Its usage is throughout the day and night.

• SCA, TENA Incontinence Adult Diapers

Product Concept

SCA is the world’s leading supplier of incontinence products, marketed under the brand name TENA. The range includes all types of protective products - for virtually negligible leaking to heavier incontinence. In order to accelerate the expansion of hygiene products in markets outside Europe and North America to make SCA a global leader, SCA had expanded operations in Asia markets. Taiwan branch office has been established since 1999. With a complete range of incontinence care products, the market share of TENA is growing constantly every year.

Objective

SCA Hygiene Products commanding an average of 20% of the markets in Malaysia and positioned as market leader brand name TENA. The company also continues to expand throughout Latin America, Japan, Australia and other Asian countries.

(1) To sell fewer product items per customer

SCA company is working to reduce their average 6.5 diaper changes per day to 3 pieces a day. Producing high quality diapers (dry and comfortable), help to minimize frequent changes among the users.

(2) Help user’s to achieve cost-efficient utilization

SCA Promise Guaranteed Cost Program is set up to give facilities a grasp of which specific products are needed for which residents for how long. This cost monitoring and close control of utilization are where the savings come from. The company supports this by educating key nursing personnel in this new approach. In short, this program help the users to minimize the wastage among the users.

(3) Care Management

SCA strongly believe in the concept "We're not just selling diapers," but "we're selling a way of caring for incontinence. So that this group of people who suffers from incontinence problem still can continue with daily living.

Strategy

(1) Business Focus Strategy

SCA's strategic focus is to increase the percentage of high value-added products, to grow and to optimize each business area by selective investments and divestments.

(2) Marketing strategy

Quality and value-added; The concentration on growth within Personal Care, Tissue and Packaging has gradually shifted the balance towards consumer products. Also within Forest Products, the focus has shifted towards products with increasing value-added. SCA product in Asia has been awarded with ISO 9001 and ISO 9002 certification.

(3) Social Awareness

SCA is focusing on increasing awareness and acceptance of incontinence, developing effective and comfortable products and raising availability through all distribution channels.

(4) Niche market strategy

The Company introduces adult incontinence products into its markets in a manner consistent with its niche market strategy. The Company believes that the key to successful marketing of this type of product is the high and prompt level of service from the manufacturer and distributor, regular contact with institutions to ensure proper knowledge of the products, and providing a range of products of high quality and performance.

(5) Cost effective Strategy

Cost effective is SCAs ultimate motif in their business. In order to deliver their product in lower cost with high in quality SCAs feel they should maintain the cost effectiveness.

Strength

(1) Product Development

SCA is working to consolidate the world-leading TENA brand, which offers products for all user needs through the sales channels. SCA is in the front line in product development and the pace of innovation is high – both in terms of the development of new products and ongoing improvements to the existing range. With excellent technology and experience R&D Its products have since gone through lots of design modifications, making them ever more high-absorbency, leak proof and comfortable to wear.

(2) SCA established a strong distribution

SCA is having a good Transportation and delivery system to cater for retailers needs.

Weakness

(1) Seasonality

There is no significant seasonality impact on the Company's business because DGP feel this Adult incontinence diapers is not a seasonal product. Its usage is throughout the day and night.

Part 2: Marketing Strategy Audit

2.1 Business Mission

SCA's mission, vision and core values are important tools in creating a company in which employees are united by common goals and in a shared ambition. Mission: "To provide essential products that improves the quality of everyday life." SCA's products make life considerably easier for consumers and customers in a modern society. Vision: "To be recognized as the leading provider of value for customers, shareholders and employees in its field." SCA will continuously strive to create more value, achieve greater results and make a positive contribution to the life of every individual in every community where the Group's product, or services can be found. SCA will remain at the forefront of sustainable development and will continue to conduct our activities with the highest possible economic and environmental standards.

Core values: SCA’s core values are based in the company's history, and the Group has been built around the core values. They define the way to do business and the way to behave. The core values inspire and challenge SCA's employees in their efforts to create a successful company financially, socially and environmentally.

o Respect: To be respectful is to be open and honest, and to behave with integrity. To be respectful we must consider how our actions will affect others, inside and outside our company, now and in the future. Respect fosters cooperation and makes it easier for us to achieve our common goals.

o Excellence: Our pursuit of excellence leads us to new levels of professionalism. To be excellent, we must challenge ourselves to exceed the expectations of our customers, shareholders, and colleagues by striving to surpass our targets and improve our results.

o Responsibility: SCA works to empower every individual at every level of our organization - and empowerment demands responsibility. To be responsible we must be reliable, but also creative, confident and ready to accept challenges. We must always perform our daily tasks carefully and thoroughly, with our customers' and company's best interests in mind.

2.2 Marketing Objectives and Goals

SCA Hygiene Products commanding an average of 20% of the markets in Malaysia and positioned as market leader brand name TENA. The company also continues to expand throughout Latin America, Japan, Australia and other Asian countries. For all its size and growth aspirations, SCA Hygiene has a unique marketing goal:

• To sell fewer product items per customer

SCA company is working to reduce their average 6.5 diaper changes per day to 3 pieces a day. Producing high quality diapers (dry and comfortable) help to minimize frequent changes among the users.

• Help user’s to achieve cost-efficient utilization

SCA Promise Guaranteed Cost Program is set up to give facilities a grasp of which specific products are needed for which residents for how long. This cost monitoring and close control of utilization are where the savings come from. The company supports this by educating key nursing personnel in this new approach. In short, this program help the users to minimize the wastage among the users.

• Care Management

SCA strongly believe in the concept "We're not just selling diapers," but "we're are creating awareness towards incontinence. So that this group of people who suffers from incontinence problem still can continue with daily living.

• Participate in continuous product development

Behind this value-added approach is the technology that goes into the product itself. Its products have since gone through some 25 design modifications, making them ever more high-absorbency, leak proof and comfortable to wear.

2.3 Strategy

SCA is focusing on increasing awareness and acceptance of incontinence, developing effective and comfortable products and raising availability through all distribution channels. Health care providers account for the majority of sales. The strategy for this customer group is to show how SCA’s high-quality products and expert advice can cut costs for nursing homes and at the same time raise the quality of life for the users. In the retail area, SCA is working on removing taboos through active information and advertising and by developing discrete and effective products. SCA is working to consolidate the world-leading TENA brand, which offers products for all user needs through all sales channels. SCA is in the front line in product development and the pace of innovation is high both in terms of the development of new products and ongoing improvements to the existing range. In 2007 the entire product range aimed at institutions and home care will be upgraded. SCA will also launch products that are in the grey zone between feminine care and incontinence care, but that are more appropriate for the users.

Part 3: Marketing Strategy Audit

3.1 Marketing Information System

A marketing information system (MIS) is intended to bring together disparate items of data into a coherent body of information. An MIS is, as will shortly be seen, more than raw data or information suitable for the purposes of decision making. An MIS also provides methods for interpreting the information the MIS provides. Moreover, as Kotler's1 definition says, an MIS is more than a system of data collection or a set of information technologies.

In SCA,MIS begins with a description of each of its four main constituent parts:

• The internal reporting systems,

• Marketing research system,

• Marketing intelligence system

• Marketing models.

It is suggested that whilst the MIS varies in its degree of sophistication - with many in the industrialised countries being computerised and few in the developing countries being so - a fully fledged MIS should have these components, the methods (and technologies) of collection, storing, retrieving and processing data notwithstanding.

• Internal reporting systems:

All enterprises which have been in operation for any period of time have a wealth of information. However, in SCA this information often remains under-utilized because it is compartmentalized, either in the form of an individual entrepreneur or in the functional departments of larger businesses. That is, information is usually categorized according to its nature so that there are, for example, financial, production, manpower, marketing, stockholding and logistical data. Often the entrepreneur, or various personnel working in the functional departments holding these pieces of data, do not see how it could help decision makers in other functional areas. Similarly, decision makers can fail to appreciate how information from other functional areas might help them and therefore do not request it.

The internal records that are of immediate value to marketing decisions are:

• Orders received,

• Stockholdings and sales invoices.

These are but a few of the internal records that can be used by SCA’s marketing managers, but even this small set of records is capable of generating a great deal of information. Below, is a list of some of the information that was derived from sales invoices.

• Product type, size and pack type by territory

• Product type, size and pack type by type of account

• Product type, size and pack type by industry

• Product type, size and pack type by customer

• Average value and/or volume of sale by territory

• Average value and/or volume of sale by type of account

• Average value and/or volume of sale by industry

• Average value and/or volume of sale by sales person

By comparing orders received with invoices an enterprise can establish the extent to which it is providing an acceptable level of customer service. In the same way, comparing stockholding records with orders received helps an enterprise ascertain whether its stocks are in line with current demand patterns.

• Marketing research systems:

The general topic of marketing research has been the prime ' subject of the textbook and only a little more needs to be added here. Marketing research is a proactive search for information. That is, the enterprise which commissions these studies does so to solve a perceived marketing problem. In SCA’s cases, data is collected in a purposeful way to address a well-defined problem (or a problem which can be defined and solved within the course of the study). The other form of marketing research centers not around a specific marketing problem but is an attempt to continuously monitor the marketing environment. These monitoring or tracking exercises are continuous marketing research studies, often involving panels of farmers, consumers or distributors from which the same data is collected at regular intervals.

• Marketing models:

SCA and Within the MIS there has to be the means of interpreting information in order to give direction to decision. These models may be computerized or may not. Typical tools are:

• Time series sales modes

• Brand switching models

• Linear programming

• Elasticity models (price, incomes, demand, supply, etc.)

• Regression and correlation models

• Analysis of Variance (ANOVA) models

• Sensitivity analysis

• Discounted cash flow

• Spreadsheet 'what if models

but in SCA (M) they just practicing a few of them rather than all, These and similar mathematical, statistical, econometric and financial models are the analytical subsystem of the MIS within SCA. A relatively modest investment in a desktop computer is enough to allow an enterprise to automate the analysis of its data. Some of the models used are stochastic, i.e. those containing a probabilistic element whereas others are deterministic models where chance plays no part. Brand switching models are stochastic since these express brand choices in probabilities whereas linear programming is deterministic in that the relationships between variables are expressed in exact mathematical terms.

Totally and overall we can say that marketing information systems in SCA hygiene (M) are intended to support management decision making. Management has five distinct functions and each requires support from an MIS. These are: planning, organizing, coordinating, decisions and controlling.

Information systems in SCA was designed to meet the way in which managers tend to work. Research suggests that a manager continually addresses a large variety of tasks and is able to spend relatively brief periods on each of these. Given the nature of the work, managers tend to rely upon information that is timely and verbal (because this can be assimilated quickly), even if this is likely to be less accurate then more formal and complex information systems.

Managers play at least three separate roles: interpersonal, informational and decisional. MIS, in electronic form or otherwise, can support these roles in varying degrees. MIS has less to contribute in the case of a manager's informational role than for the other two. Three levels of decision making can be distinguished from one another: strategic, control (or tactical) and operational. Again, MIS has to support each level. Strategic decisions are characteristically one-off situations. Strategic decisions have implications for changing the structure of an organization and therefore the MIS must provide information which is precise and accurate. Control decisions deal with broad policy issues and operational decisions concern the management of the organization's marketing mix.

Part 4: Marketing Function Audits

4.1 Products

• Personal Care comprises three product segments: incontinence care, baby diapers and feminine care.

• Tissue offers toilet paper, kitchen rolls, handkerchiefs, napkins as well as related equipment to consumers and Away-From-Home tissue customers.

• Packaging offers containerboard and packaging solutions like transport packaging, protective packaging, consumer and point-of-sales packaging as well as services.

• Forest Products produces publication papers, pulp, solid-wood products and timber.

Incontinence care

1. SCA is the world leader in incontinence care. SCA’s global brand, TENA, comprises a complete product portfolio.

2. Incontinence products range from large absorbent incontinence protection in a pant model to ultra-thin protective pads.

3. SCA’s TENA brand is available in almost all countries with a mature market, i.e. more than 90 countries. This makes SCA the global market leader with 26% of the market.

4. SCA leads the market in Europe and is number three in North America. SCA is the leading player in the Australian, New Zealand and Latin American markets.

Strategy

SCA is focusing on increasing awareness and acceptance of incontinence, developing effective and comfortable products and raising availability through all distribution channels.

Health care providers account for the majority of sales. The strategy for this customer group is to show how SCA’s high-quality products and expert advice can cut costs for nursing homes and at the same time raise the quality of life for the users. In the retail area, SCA is working on removing taboos through active information and advertising and by developing discrete and effective products.

SCA is working to consolidate the world-leading TENA brand, which offers products for all user needs through all sales channels. SCA is in the front line in product development and the pace of innovation is high – both in terms of the development of new products and ongoing improvements to the existing range.

In 2007 the entire product range aimed at institutions and home care will be upgraded. SCA will also launch products that are in the grey zone between feminine care and incontinence care, but that are more appropriate for the users.

Tena

There is a TENA product for every need. TENA products are designed to prevent leakage and, with TENA Odour Controlâ„¢, inhibit odours. A part from that, TENA products are thinner and softer than most other products yet still extremely absorbent.

The strength of TENA products is on the inside. A fast absorbing core provides excellent security, leaving the surface feeling dry against the skin. TENA Odour Controlâ„¢ means it inhibits odours from developing, so nobody will notice a thing. It works with a low pH value is also beneficial to the skin.

Use the product selector to help you choose the product that is right for you or check out the different product solutions for men, women and children

i. LIGHT - Products for women and men

• TENA Lady™ & TENA for Men™

• Pads vs. sanitary towels

• Fitting guide

TENA have a special range for women and for men, both in various absorption levels, to adapt the right product to individual needs.

The TENA Lady range is available in 4 absorbencies. The smallest is no bigger than a panty liner but much more secure. All TENA Lady pads contain unique DRY Tech Systemâ„¢ allowing faster fluid acquisition and improved absorbency keeping the skin dry and wearer secure. They also feature Odour Controlâ„¢; which inhibits the development of embarrassing smells.

TENA now offers new products specially designed for men with mild to moderate bladder control problems. Thanks to their anatomic design and the use of highly absorbent granules in their construction, TENA for Men pads can be worn with tight underwear to protect against stains caused by urine loss. TENA for Men is available in two absorption levels. Most of them come individually wrapped for user convenience.

Products on display:

• TENA Lady Ultra Mini™

• TENA Lady Mini™

• TENA Lady Normal™

• TENA Lady Extra™

• TENA Lady Super™

• TENA for Men Level 1

• TENA for Men Level 2

• TENA Pants Discreet™

ii. MODERATE

TENA products for moderate to heavy incontinence all feature the latest in absorption technology. They are designed with both the end-user and the caregiver in mind. Security, dignity and easy handling are therefore the key benefits you can expect from TENA.

Products on display:

• TENA Comfort™

• TENA Fix™

iii. HEAVY

TENA products for heavy incontinence all feature the latest in absorption technology. They are designed with both the end-user and the caregiver in mind. Security, dignity and easy handling are therefore the key benefits you can expect from TENA.

Products on display:

• TENA Slip™ Plus

• TENA Slip Super

• TENA Slip Maxi

• TENA Breathable Belted Diaper

• TENA Value

iv. Accessories

This range of accessories is an excellent complement to the TENA range and includes wash creams, wash gloves, soft wipes and skin care products.

Products on display:

• TENASET Wetwipe™

• TENASET Softwipe™

• TENASET Cellduk™

• TENASET Washcream™

• TENASET Washglove™

• MEPROTEC Bibs™

• TENA Underpad™

• TENA Hygiene Sheets™

4.2 Price

The company first decides where it wants to position its market offering the clear the firm’s objectives, the easier it is so set price. A company can pursue any of five major objectives through pricing:

1. Survival

2. Maximum current profit

3. Maximum market share

4. Maximum market skimming

5. Product quality leadership

SCA pursue product quality leadership as their major objective in the mission statement to be recognized as the leading provider of value for customers, shareholders and employees in its field.

SCA will continuously strive to create more value, achieve greater results and make a positive contribution to the life of every individual in every community where the Group's products or services can be found. SCA will remain at the forefront of sustainable development and will continue to conduct our activities with the highest possible economic and environmental standards.

Profits are less important than product quality. As long as prices cover variable cost and some fixed cost the company stay in business. SCA's strategic focus is to increase the percentage of high value-added products, to grow and to optimize each business area by selective investments and divestments. The concentration on growth within Personal Care, Tissue and Packaging has gradually shifted the balance towards consumer products. Also within Forest Products, the focus has shifted towards products with in creasing value-added.

Although the Forest Product's business area's portion of the Group's net sales has diminished, it continues to be of great strategic significance for raw material integration and strong cash flow generation.

Investments, acquistitions and divestments

SCA works constantly on optimizing each individual business area by investing in the segments that have the best future potential. SCA regards selective company acquistions as an important tool to quickly gain access to new markets or to develop complementary capabilities in existing ones. As a result of the Group's priorities, SCA may also divest units within the framework of the four business areas.

To sustain the Group's profitability and growth targets, SCA estimates the annual investment requirement at 7% of the Group's net sales. Current investments are expected to reach around 5% and strategic investments aroud 2%.

Sustainability policy

SCA exists for the purpose of creating value for the company's shareholders, increasing the standard of living and quality of life of its employees and otherwise contributing to the economic, environmental, and social well-being of customers, suppliers, and the nations in which the company transacts business.

SCA places strong emphasis on the renewability and recyclability of the raw materials it uses and strives to offer environmentally sound products and services, capable of continuously meeting customers' and consumers' needs with respect to functionality, economy, safety and environmental impact.

Policy statements:

SCA shall conduct its activities in accordance with the highest standards of corporate best practice and in full compliance with all applicable regulatory requirements. SCA is committed to the sustainable development of its business, taking all economic, environmental and social issues into consideration.

SCA is committed to transparency and open communication about its environmental and social practices. It seeks dialogue with its stakeholders in order to contribute to the development of global best practice. SCA demands the same commitment to transparency and open communication from its suppliers and subcontractors.

SCA assesses the environmental impact of its products during the various stages of their lifespan, and includes suppliers and subcontractors in this process.

SCA promotes appropriate, recognized Environmental Management Systems throughout its organization. SCA continuously reviews and challenges its objectives and targets, in order to reduce its global impact on the environment.

SCA aims to provide a safe and non-discriminatory working environment for its employees. All units must, at a minimum, strictly abide by national laws and/or collective agreements. SCA actively strives for the continuous improvement of health and safety in the workplace.

Product Pieces Price

Pureen 15 pcs

12 pcs 13.78

L:32.70

Aver beauthy Co. 12 pcs L 26.35

Certainty Guard 10 pcs S:10.15

M:11.80

Tena :

Control Plus

Value

Breathable

Plus day time

Super long lasting 10 pcs

10 pcs M:12.85

L:19.70

12 pcs

12 pcs L:15.95

M:12.69

12 pcs

12 pcs M:21.20

L:23.40

12 pcs

12 pcs M: 17.90

L: 22.44

12 pcs

12 pcs M: 20.70

L : 26.40

GREAT VALUE-TENA's economy line for those with limited budgets but still require a quality product. Designed to provide excellent leakage protection and dryness at an affordable price. Most appropriate for a person with limited mobility. Contains targeted absorbency for greater security and skin dryness. Leg gathers provide greater leakage protection and more comfort. Wetness indicator signals when brief has been soiled and needs to be checked. To protect against latex sensitivities, all Dry Comfort products and packaging are LATEX-FREE.

Discreet Packaging.

A favorite affordable diaper used by many caregivers who are caring for loved ones with limited budgets but require a quality product. NOTE the EXTRA LARGE size offered with this brand is sometimes difficult to find. It may come as no surprise that ordering by the case helps save time, money, and have less chance of running out.

4.3 Distribution

4.3.1 Chanel level

SCA is using one level consumer marketing channels, which contains one selling intermediary such as a retailer. SCA is using this one level marketing because they are actually in the growing stage in the adult diapers market, so they feel bring in more intermediary(e.g wholesaler) can increase the cost of goods sold and minimize the revenue.

SCA conducting regional base business. The manufacturing company is located in Sungai Buloh and the head office is located in Shah Alam. But the manufacturing company is in charge to distribute the final goods to the store which located at the each region base on instruction from Shah Alam (Hq).Sub distributor’s will in charge delivering the product to the said outlet.

4.3.2 Distribution, strategy.

SCA is using 2 different distribution strategies in order reach the targeted customer.

1. Intensive distribution strategy

In the mist of capturing the market share and to be no 1 in adult diapers, SCA is placing the goods in many outlets to increase the sales volume. Currently SCA is distributing TENA to Specialty store, Departmental store, super market, Discount store, and some of the leading pharmacy like Guardian, Watson, Alpro pharmacy, Apex pharmacy to capture the targeted market.

2 Direct Distribution Strategy

SCA also distributing TENA to care dealers like old folks home and hospitals (public hospitals and private hospitals). In order to maintain control over the service level and output offer by the care dealers SCA is limiting the number of intermediaries. SCA’s sale representatives are doing direct dealing to this place to make sure there is no middle man cost involve. While monitoring the distribution price, SCA are also capturing the Business to business (B2B) market especially when distributing TENA to hospitals.

Reason of the strategy

• Cost-effective distribution

Competing in the growing market SCA is really focusing on the cost effective distribution. Currently SCA is distributing Tena to the popular mall’s such as Mid Valley mega mall and Tesco in Mutiara Damansara. This is because in one mall they can distribute their product to many outlets such as Gurdian, Carefour, Jusco, Watson, Giant, and other well known pharmacy. This strategy is helping them to deliver the final goods in lower cost. But even though the focus on the well known malls but they forget to standardize the channel distribution. This is the main reason why can get TENA from guardian in Mid Valley but cannot get it in Guardian in Pandan Jaya.

Beside that, SCA is having inventory store’s in Northern region (P.Pinang) , Central region ( Shah Alam) and Southern region(Johor Baharu) so that main distributors can deliver the good in the in the inventory store’s and sub distributors can collect the final goods from there before supply them to the outlet. Obviously this will help to cut the transportation cost and time rather than main distributor deliver the goods everywhere.

• Customized selling

Give a specific focus towards the care dealers help SCA to always improve the design and the features to fit the market needs and capture the B2B markets though the hospitals.

• Increase the market coverage

Continues increase in the no of distribution channel helps SCA to capture the blue ocean for the adult diapers market.

4.3.3 Effectiveness of the distribution channel

SCA’s Channel members are not equally effective because based on our group visitation to the outlets some of the channel members such as Care four, Jusco, Giant inspired in selling TENA and arranging TENA in the rack at the eye level but in many of the pharmacy’s like Watson, Apex arranging the product at the lower rack and Pharmacy like “Alpro” only getting the product to the borrower upon request. Beside that SCA is having effective transportation system, where they’re supplying the final goods to the regional based inventory stores before the retailers always help SCA to monitor “timely and cost effective delivery” to the retail outlets and care dealers. At the same time these also help SCA having good track record outgoing goods.

4.4 Advertising and Sale Promotion

SCA give the most attention to sales promotion if compare to advertisement. This is because TENA adult diapers are in the growing stage and the market still very small. Up to now TENA only contributes 5% of the SCA’s market share. Advertisement to sales promotion ratio is about 10%: 90%. SCA is running 3 type of sales promotion for TENA which is inclusive of consumer promotion, trade promotion and sales representative promotion. Out of these 3 type of promotion consumer and sales representative promotion plays a bigger role in process of reaching the final product to the buyer’s.

(1) Consumer Promotion

• Samples

SCA offer free TENA samples in the shopping malls. In order to get free Sample customer’s have to fill up a short questionnaire which content of personal details, buyer’s relationship with users, and what are the existing brand that they are using. This is one of the ways for SCA increase the customer’s database.

• Coupon

SCA printed coupon’s in the TENA packaging its self. Each coupon’s got its own value of points. When the customers buy the product they’re able to collect the points and when its accumulate in the future they can exchange them to free samples.

• Free trial

SCA are also give free trials to customers during road show in the shopping malls.

• Prizes (contest)

SCA do running contest like creating slogan, completing missing letter’s which the buyer’s have to submit the entry form to be examined by a panel of judges who will select the best entries and the winner is entitle to win cash.

• Tie in promotion

SCA is running this tie in promotion with Jaya Jusco, where customer’s who is holding “J Card” they are entitle for a cheaper price.

• Point of purchase displays and demonstration

SCA display’s their real sample product in the market especially in shopping malls where the buyer can touch and feel TENA before they purchase them.

(2) Trade promotion

• Display allowance

SCA award money to persuade the retailer and whole seller to carry and promote TENA in their outlet.

(3) Sales force promotion

• Sales representative

SCA is using territorial sales structure, where each sales representative is assigned a specific territory (Region) and they are in charged to tied up with pharmacy’s Hospitals, Shopping mall’s. The sales structure is created in this way because its got the own advantages:

i) Sales representative are clear on their responsibilities and the final results that they have to produce.

ii) Territorial responsibility increase the representative’s initiative to cultivate local business and able to monitor personnel ties.

iii) Territorial sales structure helps to reduce the cost of traveling because they are traveling in the small area. A part from that this structure also helps the company to monitor the staff performance because each representative has been given territories of equal potential.

Recommendation

When marketing their products firms need to create a successful mix of:

In this sense the four Ps, Product, Price, Place and Promotion should be maintained properly. Our recommendation is on this four Ps.

At first we like to talk about product. The right product with the right features - for example, it must look good and work well.

To gain competitive advantage this product should be more comfortable effective, consumer and environment friendly.

• Packaging: This diaper with its various positive features can add some thing for packaging. The package essentially would be three layered (primary layer, secondary layer, and shipping layer) We recommend two types of packaging

1. Economy pack

For economy pack we can propose paper pack with less variety of colors that can reduce manufacturing cost and it is also more environment-friendly. It makes the final goods are cheaper than the existing ones.

2. Luxurious pack

Luxurious pack would be variety in colors, attractive and showy that would give competitive advantage when it is displayed in show case.

It can increase company and brand image and consumer affluence.

• Price: The price must be right. Consumer will need to buy in large numbers to produce a healthy profit to the company. We are recommending SCA hygiene diapers with strong competitive price with batter in value. But it doesn’t mean that they have to reduce cost of the product directly but they can always attach the accessories product together with the main product.

• Promotion

Advertisement: SCA for promoting product now should emphasize on advertisement. As it is a growing product and the market is possibly wide so public-awareness can increase its sales level.

Our opinion for advertisement

1) Radio: In Malaysia radio is very popular as an entertainment-instrument. And people like radio while driving. In this regard the most popular cannel Lite FM, THR, ERA and other channel for different languages would be followed for advertisement.

2) TV 2/3 In prime our (7-10pm) when all the family member gather before TV that time our products advertisement can attract much more viewer and can create a wide range of product-conscious people.

3) LRT, Monorail and Bus would be a good place for moving-ad.

4) Road show in residential area to cover the elderly people who are not working and most of the time at home would be effective. As the elderly people are the main buyer of this product so to pay their attention road show would bring a good result.

5) Health magazine would be a good place for ad as this product takes care people basically in the time of health hazard. The ad in health magazine can attract the health conscious reader and the people engaged with health care services who can promote the product making other conscious.

6) Online advertisement can make the browser concern about the product.

Places and distribution

Places: This product has been distributed in several Guardians, Watson and some health care centres. We recommend distributing Tena in the convenience stores where people go to buy commodities. We like to emphasize on Seven eleven.

The gender wise sales person: People who have been suffering feel shay to say their urinary problem. That’s why gender-wise sales person can help people to disclose their problem and to buy.

Distribute to the common people: SCA is distributing its diapers in hospital, health care centers old folk home only. It should distribute among common people in super market and other place where it is promoted. Because this product is important for all in a certain time.(for high credibility) in the advertisements As the diaper is essential when people suffer from urinary problem so engaging Doctors to promote or to make people conscious would be very fruitful.

Buy more in quantity meet a doctor without consultation fees (SCA doctor): By more diapers and meet a doctor without any consultation fee. It should be mentioned the doctor is SCA’s representative doctor who also gives delivery a few advice on the product to make the patient a user of this product. This type of activity can bring better result.

Online purchasing E-commerce is becoming most popular day by day. In this regard SCA can conduct B2B and B2C e-business following click and mortar e-commerce.

Giving training to the channel member or putting representative in each sales outlet to make people aware about the product would be helpful for promoting more.

Continuous evaluation about the product in market is important. SCA should focus on continuous evaluation about the product in the market. For example Guardian product at eye level in display but in Watson it is in a corner in some pharmacy this product is not displayed yet. As SCA should provide high margin to retailers so that retailers will carry the brand effectively.



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