Case Analysis on Are They Ready to Put Avocado on Their Face?
I. Point of View The point of view of Mr. Ricky Bautista, president of Vive Chem Philippines (VCP), and Mr. Willy Tan, King Matches Corporation’s product manager, were considered since they can best tackle the problem, suggest and analyze proposals, decide, implement and follow-up the resolution that was chosen.
II. Market Situation Analysis 1. Opportunities - threats analysis. A. Opportunities: • There a high market potential on herbal-based astringent. ▪ Since all the current brands in the market were chemical-based, the concept of herbal-based astringent is an innovation.
• Astringent users have the tendency to switch brand. ▪ Astringent users were looking for brand that will satisfy their requirements, until the requirements meet, they will try and use different brands to look for the qualities and attributes of their “ideal” astringent.
• Market competition was not strong. ▪ Since the competition was not strong, a large part of the market was still not captured the market segments.
• New brand entrants ▪ It will make the market to change and accept the concept of “natural” products.
• Consumers don’t have product loyalty. ▪ Marketing efforts leads to switching behavior. B. Threats: • The market was not yet ready for “natural” products. ▪ Consumers didn’t have a strong grasp about the product being a natural.
• Eskinol has a large share in the consumers’ mind.
▪ It will hard to make the users to shift from Eskinol to Provive since 61% of the market currently using it.
• Current product has more reasonable price. ▪ Some astringent users were more concern about the price of the brands. Because Provive was in the introduction stage of the product life cycle it was expected to be costly.
• There is a possibility that a large multinational company with a market leader position in several hygiene categories was seriously
II. Market Situation Analysis 1. Opportunities - threats analysis. A. Opportunities: • There a high market potential on herbal-based astringent. ▪ Since all the current brands in the market were chemical-based, the concept of herbal-based astringent is an innovation.
• Astringent users have the tendency to switch brand. ▪ Astringent users were looking for brand that will satisfy their requirements, until the requirements meet, they will try and use different brands to look for the qualities and attributes of their “ideal” astringent.
• Market competition was not strong. ▪ Since the competition was not strong, a large part of the market was still not captured the market segments.
• New brand entrants ▪ It will make the market to change and accept the concept of “natural” products.
• Consumers don’t have product loyalty. ▪ Marketing efforts leads to switching behavior. B. Threats: • The market was not yet ready for “natural” products. ▪ Consumers didn’t have a strong grasp about the product being a natural.
• Eskinol has a large share in the consumers’ mind.
▪ It will hard to make the users to shift from Eskinol to Provive since 61% of the market currently using it.
• Current product has more reasonable price. ▪ Some astringent users were more concern about the price of the brands. Because Provive was in the introduction stage of the product life cycle it was expected to be costly.
• There is a possibility that a large multinational company with a market leader position in several hygiene categories was seriously