Marketing Plan

I.
II.

Executive Summary
Situational Analysis

A. Company
1. Profile
The Splash Group is composed of wholly-owned Philippine companies with business
interests in personal care manufacturing and marketing, international distribution, and
recently, health and wellness products development and marketing. Founded in 1985,
Splash was able to grow from a Php12,000 backyard business into a Php4 billion
enterprise through the vision, innovation, and commitment of its founders, Dr. Rolando
B. Hortaleza and Dr. Rosalinda A. Hortaleza. Being consistently in the Top 300
corporations in the Philippines since 1998, the Company has established its reputation as
one of the formidable players in the Philippine personal care industry.
2. Goals
The mission of Splash Corporation (SPH) is to be known for strong brand management
and making accessible pioneering, quality, innovative products derived from extensive
research, to improve the well-being of our consumers. They will do this through:
1. Leading edge trade and consumer marketing systems.
2. Pursuit of excellence in all other business systems.
They shall be generous in sharing the rewards with their employees, business partners,
stockholders and our community for the realization of their corporate cause which is to
uplift the pride and well-being of the individuals and societies that the company serves.
3. Focus
Splash Corporation (SPH) was incorporated primarily to develop, manufacture, bottle,
pack and market cosmetics and other beauty and pharmaceutical products in the
Philippines and abroad. It also intends to develop or acquire technology to manufacture
and sell personal care, pharmaceuticals, food, health, household care, and other ancillary
products.
4. Strengths

Splash Corporation is a fast-growing family of brands that are leaders in their

respective categories. Now, Splash is known globally venturing into high-growth
markets in Southeast Asia, Africa, Middle East and North America.

Splash direct selling continued its rapid growth because of aggressively recruiting
and expanding its network of independent dealers and branches.

Splash has introduced more competitively priced brands of beauty and personal
care products and home care products.

Splash Corporation provides pioneering and high-quality products and services

that cater to the universal desire of people to look good and live well.

Splash Corporation has established a very strong relationship with retailers by

offering them good margins and incentives, which are very important for a
company in the consumer brand market. This provides the company strength to
reach the ultimate consumers.

Through state-of-the-art facilities and equipment, and a research staff of more

than twenty (20) chemists, pharmacists and engineers, SRI carries out the design
and development of innovative products and packaging systems, thereby keeping
Splash at the forefront of the personal and health care industries.

Splash has growing portfolio brands and diversified product range

5. Weaknesses

Splash Corporation has strong competitors that operate worldwide, have big
market shares, huge product line, and million of customers e.g Unilever, Proctor
and Gamble.

There are lots of substitute products available in the local market. Because of
product quality and extensive research and development, company charge higher
prices for its product but the local products are much cheaper.

The company has a weak portfolio brands compare to its strong competitors
which have wide product variety.

6. Market Share

Splash Corporation is the biggest Filipino-owned manufacturer of personal care, health,

and wellness products. It carries the brands Extraderm, Maxi-Peel, and Skin White, as
well as Biolink, touted as one of the fastest-growing skin care brands in the country.
Splash has grown into a multi-billion peso company, with two of its core products,
exfoliant and skin whiteners, dominating their segments with market shares of 86% and
41%, respectively, based on an AC Nielsen Philippine Retail Index Report. The Company
is ranked sixth in the Philippine personal care industry, the only Filipino owned company
in the top 10.The Company aims to strengthen its presence in the personal care markets in
the Asia-Pacific region and to gain a foothold in the affluent markets of Europe and North
America through its health and wellness products. To date, Splash has established market
presence in over 30 countries through its distributors and local exporters. These countries
include Algeria, Australia, Bahrain, Canada, Egypt, Hong Kong, India, Indonesia, Iran,
Japan, Jordan, Korea, Kuwait, Lebanon, Malaysia, Nigeria, Oman, Pakistan, Qatar, Saudi
Arabia, Singapore, Sudan, United Arab Emirates, Vietnam and the United States.

B. Customer Analysis
1. Number
2. Type
3. Value drivers
4. Decision Process
5. Concentration of customer base product
C. Competitors
1. Market Position
2. Strengths
3. Weaknesses
4. Market Share
Ponds
A.
B.
C.
D.

Olay
Nivea
Garnier
The Body Shop

D. Collaborators (subsidiaries, joint ventures, distributors)

The company created another corporation called Splash Direct

Sales Corporation that is assigned to house-to-house distribution.
(http://www.splash.com.ph/)
Splash Group of Corporations acquired pharmaceutical retailer
Savemore Drug Inc. With this acquisition, the corporation can
now strengthen its distribution on the said retail store. (Source:

http://business.inquirer.net/16735/hortaleza-company-gets-newinvestor-buys-drugstore-firm)
JDC Direct Sales is now carrying the products of Splash
Corporations. (Source: http://jdcdirectsales.com/2014/03/05/jdcdirect-sales-is-now-carrying-splash-products/)
It has national distributors in Malaysia and the Middle East. In
Indonesia, which is currently its largest overseas market, it owns
the majority in a joint venture company, the PT Splash Indonesia.
The company is on a 5-year international expansion program.
(Source: http://www.unionbankph.com/index.php?
option=com_content&id=689&
Itemid=318)
Splash products are now available in Indonesia, Malaysia,
Vietnam, Myanmar, Laos, and Cambodia. It is also sold in the
Middle East specifically and Africa. (Source:
http://www.splash.com.ph/index.php/press-coverage-on-splashcorps-singapore-holding-company/)
With regard to its cash management, the company appoints
Unionbank of the Philippines cash management bank.
(Source:http://www.unionbankph.com/index.php?
option=com_content&id=689&Itemid=318)

E. PEST ANALYSIS
1. Politico-Legal Environment

Patent and trademarks

Splash Corporation owns over 100 trademarks and protecting these trademarks by
registering in the markets where it sells or intends to sell the products. Just like
the other trademarks of company brands such as Maxi-peel, Extraderm, Skinwhite
and Biolink, _________ is also covered by Utility Model Patents registered with
the Intellectual Property Office of the Philippines.

Government Approval and Regulations

The Splash Corporation complies with all the relevant regulatory requirements of
the Food and Drug Administration (FDA) and equivalent regulatory agencies in
every country where its products are sold.
Republic Act No. 3720 is the act ensuring the safety and purity of foods, drugs
and cosmetics being made available to public. As part of cosmetic products,
________ also complies with these government regulations.

Compliance with Environmental Laws

These are the following rules that the Philippine Government implemented with
regards to protecting the environment, and in with the manufacturing of ________
has to comply with:
a. Republic Act 6969 (Toxic Substances, Hazardous and Nuclear
Wastes Control Act of 1990)
The law aims to regulate, restrict or prohibit the importation, manufacture,
processing, sale, distribution, use and disposal of chemical substances and
mixtures that present unreasonable risk to human health. It likewise prohibits the
entry, even in transit, of hazardous and nuclear wastes and their disposal into the
Philippine territorial limits for whatever purpose; and to provide advancement and
facilitate research and studies on toxic chemicals.
b. Republic Act 8749 (Clean Air Act of 1999)
The law aims to achieve and maintain clean air that meets the national air quality
guideline values for criteria pollutants, throughout the Philippines, while
minimizing the possible associated impacts to the economy.
c. Republic Act 9003 (Ecological Solid Waste Management Act of
2000)
In partnership with stakeholders, the law aims to adopt a systematic,
comprehensive and ecological solid waste management program that shall ensure
the protection of public health and environment. The law ensures proper
segregation, collection, storage, treatment and disposal of solid waste though the
formulation and adoption of the best eco-waste practices.
d. Republic Act 9275 (Clean Water Act of 2004)
The law aims to protect the countrys water bodies from pollution from landbased sources (industries and commercial establishments, agriculture and
community/household activities). It provides for a comprehensive and integrated
strategy to prevent and minimize pollution through a multi-sectoral and
participatory approach involving all the stakeholders.

2. Economic Factor
Economic factors mainly affect the purchasing power of customers. The more
customer demand for the product the more profit to the company, at the same time
if there is no customers demand its going to affect the company in a negative
manner.

Usually a rise in the unemployment rate indicates that a part of customer base has
lost their purchasing power. Many consumers will change their purchasing habits
due to a lack of disposable income. As a result of this decreased spending, many
consumers have turned towards substituting name brand products for their generic
alternatives. Another alternative is due to the lack of disposal income, consumer
instead of buying products for beautification purposes, will just focus on buying
the essential goods which are food, shelter or clothing.
3. Socio-Cultural Factor
This issue analyzes the demographic and cultural aspects that can help determine
whether a product can compete in the current market. People nowadays are health
and beauty conscious. The cosmetic market is propelled by a growing population
that is highly beauty conscious. As per the ongoing trends in the cosmetic market,
it is expected that this market will be fueled by rising demand for anti aging
products, and growth of that segment of consumers includes women over the age
of 30 years There is also a growing demand for organic cosmetic products all over
the world because of health conscious consumers that are looking for natural
alternatives to chemical laden beauty products.
Socio-cultural factors affect the buying behavior of the consumers. Cosmetics are
selected in the framework of personal culture and rituals performed. Along with
that the language and symbol on the package influences their selection.
Consumers would like to buy cosmetics of most favored brand because they know
that global brands fulfill the needs of their customers through quality products.
This is one of the problems of ________, it is a new brand and its competitors are
well-known globally. The consumers need to be aware with the new product to
create demand in the market.
4. Technological Factor
This factor takes into consideration the technology issues that impact how an
organization brings its product or service to the marketplace. Depending on the
technology available, it can make it easier or harder to enter the industry and
increase production level.
The Company established the splash Research Institute (SRI) to continuously
develop, by employing cutting-edge technology, new products that will meet the
growing needs of the personal care market. It adopted the open innovation
concept, whereby the Company collaborates with the suppliers to come up with
new and better products formulations in a cost effective matter. The Company
ensures that there is a ready stream of new products that it can launch at any given
time based on a rolling eight-quarter plan.

SRIs department (Product Research and Development, Packaging Innovations,

Product Testing and Documentation, and Skin Research) works interdependently
towards creating innovative products which address the felts and latent needs of
consumers.
III.

SWOT ANALYSIS OF THE PRODUCT

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

1. Product is free from toxic, mercury and other chemical

content.
2. Helps fight skin problems through its natural ingredients.
3. Its an all-in-one solution to different skin problems.
4. The packaging is eye-catching which is suitable for its target
market.

1. Lack of brand awareness.

2. The product has a limited packaging size which may be
inconvenient to some customers.
3. The product can only last for six months after opening.

1. Expansion of cosmetics industry into semi-urban and rural

areas of the country.
2. Continuous shifting of consumers lifestyle to a more
conscious individuals in terms of beauty and health.
3. Minimal competition of existing organic beauty products.
4. Cost-efficient beauty regimen.

1. Growing competition from the emerging markets.

2. High competition from existing markets.
3. Lack of national standards for organic products.
4. Increase of spa and beauty clinic.

IV.
V.

OBJECTIVES AND ISSUES

MARKET SEGMENTATION

GEOGRAPHIC

COUNTRY

Philippines

DENSITY

Urban and Rural

DEMOGRAPHIC

AGE

14-30 years old

GENDER

Female

INCOME

Php15,000 per month

OCCUPATION

Any occupation

PSYCHOGRAPHIC

SOCIAL CLASS

Classes B, C,and D

LIFESTYLE

Beauty and health conscious

PERSONALITY

Outgoing, self-conscious

BEHAVIORAL

BENEFITS

Quality,

USER STATUS

Potential and regular user

LOYALTY STATUS

Strong

ATTITUDE TOWARD PRODUCT

Positive

READINESS STAGE

Informed, desirous

SEGMENT 1
-

Description
Percent of Sales
What they want
How they use products
How to reach them
Price Sensitivity

SEGMENT 2,3,

VI.

MARKETING STRATEGY

Marketing is the management process responsible for identifying and satisfying

consumer requirements profitably. The product La Organika came to market because
the company was able to identify and anticipate consumer requirements when it comes
to personal hygiene and grooming, also to compete in an ever competitive market when
it comes to beauty products, and make profit as well. It aims to exceed customer
expectations by adapting the product to what the customers need. Through the use of
Business-to-consumers (B2C), La Organika will be able to outperform its competitors,
because unlike any other facial wash, it provides exactly what consumers prefer which
is the organic one.
In a rapidly changing environment, the company decided to adapt to new trends and
preference of customers through new-product development. It innovated one of its
products, which is facial wash, into something different from the competitors actions.
Through this innovation, the customers with different preference were also given a
choice.
POSITIONING

PRODUCT
Brand name
Quality
Scope of product line
Warranty
Packaging
PRICE
Price is also one thing that was considered for the product. The price charged for a
product depends on several factors like cost of producing it, rate of return, price
consumers are willing to pay, etc. So, the company came into a product which will give
customers more for less price as compared to competitors. Through the use of market
penetration, the product is introduced at a lower price in order to help gain market
share.
List price
Discounts

Bundling
Payment terms and financing options
Leasing options
DISTRIBUTION (PLACE)
Distribution channels, such as direct, retail, distributors & intermediates
Motivating the channel for example, distributor margins
Criteria for evaluating distributors
Locations
Logistics, including transportation, warehousing, and order fulfilment
In order to make the product available to customers in the most convenient way, the
company, Splash, would involve in selling the product to retailers and direct selling.
Through this, customers who go shopping will be able to buy the product through
retailers. Those customers, however, who do not want to go outside just to buy the
product may be able to buy it through direct selling. Also, because of direct selling, there
will be a greater possibility to influence potential customers to buy the product due to
the agents who are hands-on in persuading consumers to buy through them.
PROMOTION
Advertising, including how much and which media.
Public relations
Promotional programs
Budget; determine break-even point for any additional spending
Projected results of the promotional programs
Splash wants to position itself away from competitors to have an advantage. So, in
order to position the product, it will use an above-the-line strategy. Its above-the-line
activities would include features to magazines as well as TV and radio advertising.
These type of media reach a wide audience therefore will make it for the product to
quickly reach target customers.
MARKETING RESEARCH
MARKETING ORGANIZATION

VII. MARKETING IMPLEMENTATION (Action Program)

VIII. BUDGETS
IX.
PROJECTIONS

X.

CONTROL