Integrated Marketing Communication Plan for the Product Launching of Adidas Shower Gel in China
Executive summary
Adidas Shower Gel, as a health care product, promises to meet the specifications and needs of shower gels consumers by offering clean, refreshing, and moisturized skin after bathing. As a leader in distribution and market sales of fast-moving consumer products, Procter & Gamble Hong Kong Ltd is launching Adidas Shower Gel in the Chinese market in early 2007 with an allocated budget of HK.5 million to complete the project. To gain management buy-in, the integrated marketing communications plan for launching the healthcare product in the cities of Shenzhen and Guangzhou considered the value proposition of the product, market environment in the localities, the advertising, brand, PR and media strategies of the campaign along with the presentation of the marketing communications activities, project timeline, budget allocation, and monitoring and control of the entire marketing plan.
Introduction
Today’s market is characterized by highly competitive organizations which are all vying for consumer’s loyalty. Firms are faced with the challenge to maintain their own competitive edge to be able to survive and be successful. Strategies are carefully planned and executed to gain the ultimate goal of all: company growth. However, external factors are not the only elements which influence growth. Today most companies find that it impossible to create any kind of sustainable competitive advantage based on product alone. It is common knowledge that every one of the successful companies sought and found a precise understanding of how it could create a customer-centered competitive advantage.
This paper presents an integrated marketing communications plan for launching the Adidas Shower Gel in the cities of Shenzhen and Guangzhou in China. As such discussions of the (a) value proposition of the product, (b) market environmental scanning, (c) segment, target, and positioning of the product, (d) integrated marketing communications strategy statement, (e) advertising and brand strategy, (f) PR strategy, (g) media strategies and recommendations, (h) other marketing communications activities, (i) project timeline with work breakdown activities, (j) budget allocation, and (k) monitoring and control were presented.
Value Proposition of the Product
The creation of the marketing mix is intended for the purpose of insuring the achievement of various corporate goals such as profit, volume, image, reputation and return on investment through the satisfaction of the consumers’ wants and needs. It results in the total bundle of utilities actually purchased by consumers in selecting products and services, and it is concerned with such factors as price, design, advertising, packaging and distribution channels. But in the case of Adidas Shower Gel manufacturers, customer satisfaction is the primary aim of marketing. In focusing on the future, the enterprise ensures the best possible chance of attaining long-term stability and competitive standing. The value proposition of the product is not solely focused on the knowing the needs of the customers, but the company is also extending effort in knowing its customers more through the establishment of a better customer care and consulting service.
As a leader in distribution and market sales of fast-moving consumer products, Procter & Gamble Hong Kong Ltd is launching Adidas Shower Gel in the Chinese market to provide for the needs of the people in the Mainland. Adidas Shower Gel, as a health care product, promises to meet the specifications and needs of shower gels consumers by offering clean, refreshing, and moisturized skin after bathing. The product comes in four variants which can be enjoyed by both the Chinese men and women. For the male consumers, the company offers the (1) Deep Sea Mineral Body Wash, and the (2) Charcoal Body Wash; while the female shower gel users can choose from the (3) Firming Body Wash with Collagen and Moisturizing Cream, and the (4) Rich Moisture Body Wash with Honey Oil Essence and Moisturizing Cream. All the products come in 500mL bottles.
The Deep Sea Mineral Body Wash for men promotes skin metabolism that keeps the skin supple and radiant. It contains sea weed extracts which thoroughly cleanses the body while likewise ensuring that the skin is moisturized and refreshed. The cooling and refreshing menthol sensation also characterizes the product to uplift both the mind and body of the user stimulating blood circulation and removing tiredness. On the other hand, the Charcoal Body Wash for men effectively absorbs and removes excessive sebum and dirt that causes skin problems and body odor cleaning the body deeply while at the same time keeping the skin refreshed and moisturized. The chamomile extract soothes the sensitive and rough part of the skin to give the user a better-feeling body. Like the Deep Sea Mineral Body Wash, the Charcoal Body Wash was formulated to improve and stimulate blood circulation and relives the body from tiredness.
Women can also enjoy the beneficial offer and promise of Adidas Shower Gel with the Firming Body Wash with Collagen and Moisturizing Cream and the Rich Moisture Body Wash with Honey Oil Essence and Moisturizing Cream. The Firming Body Wash with Collagen and Moisturizing Cream provides youthfully elastic skin for women, formulated with collagen that effectively helps increase natural skin elasticity and firmness. The added moisturizing cream mildly and gently moisturizes the skin to reveal its smoothness and softness. The creamy lather gently yet effectively helps purify and renew the skin in order to preserve natural elasticity. The Rich Moisture Body Wash with Honey Oil Essence and Moisturizing Cream provides natural moisture veil for beautifully sleek and radiant skin. The natural honey oil essence serves as natural moisture veils and provides the best moisturization to the skin. Meanwhile, the rich moisturizing essence contains three different moisturizing agents that effectively moisturize the skin to reveal its smoothness and softness preserving preserve natural moisture on its own. It is recommended for dry skin and during winter when the skin could be characterized as dry due to the cold temperature.
Market Environmental Scanning
Competition is an important factor to consider before entering a business. Companies should have successful competitive strategies to be able attract, retain and grow customers. However, before the company can plan and execute these strategies, it should be able to pinpoint its sources of competitive advantage which can be differentiated through products, services, channels, people and image ( 2001). There were of course foreign companies able to set a stronghold in the Chinese soil, but only those who came utterly prepared, knowledgeable in Chinese society, and committed to do business. After all, China is a large country with its transportation and communication sector still under development. Regions are separated and fragmented, and therefore cannot be considered a unified market.
China has done remarkably well since the beginning of the economic reform movement in 1978 (1996). Between 1979 and 1995, China’s GDP grew at an average annual rate of 9.5 percent. China’s exports grew even faster and China now ranks among the world’s top 10 exporting economies. The government, in implementing the Coastal Economic Strategy, established four special economic zones in the coastal provinces of Guangdong and Fujian and 14 other coastal cities were opened in 1984 to attract trade and foreign direct investment. These economic zones and cities enjoyed relatively better tax treatments and preferential resource allocations (1998).
Moreover, China’s entry into the WTO will make China’s door even more open. Both foreign investment and foreign trade are expected to increase ( 2000). Foreign firms will begin to penetrate China’s financial and telecommunication sectors. Trade will increase in both directions and Chinese tariffs will be lowered and Chinese goods will have better access to world markets open to members of the WTO. Using foreign competition to stimulate the domestic economy is a major objective in seeking to join WTO, as explicitly stated by . This illustrates the growing competition of different companies from different business industries which should be taken into account by Procter & Gamble Hong Kong Ltd in its aim to introduce Adidas Shower Gel in the cities of Shenzhen and Guangzhou.
The immediate issues faced by the early investors were cultural differences, trade barriers and government restrictions. Coca cola, Philips, Kentucky Fried Chicken, Nokia, Microsoft, and Johnson and Johnson were some of the companies who succeeded in taming the “dragon”. There is social behavior in China that in itself, is not bad, but it does affect the country’s globalization process. The predominant thought in Chinese Marketing System is that in order to do business successfully in China, the business must be organized, implemented, and operated in China. A business have no hope of much success if operated through long distance management, controlled by overseas main branch, or implemented by a foreign team that excludes participation by the locals. The Chinese are like westerners after all, sincerity and friendship is appreciated. A business in China must show acceptance of the host country. Donation to the government and charities , company leaders’ visits during China’s important days, company participation in China’s activities or drives, these are likely to make a foreign company accepted by the Chinese market.
In this light, looking into the characteristics and thought processes of the Chinese people still holds as the most significant factor to be looked into for the efficient and effective sales and marketing of Adidas Shower Gel since the large scope of the market can pose a hindrance to a successful marketing strategy in terms of over generalized definition of the target or niche market of the product in the cities of Shenzhen and Guangzhou. According to (2001), consumer buying behavior or the buying behavior of the individuals and households who buy the goods and services for personal consumption directly impacts how products and services are presented to the different consumer markets. Moreover, there are many components which influence consumer behavior namely: cultural, social, personal and psychological (2001).
Consumers may choose particular products/brands not only because these products provide the functional or performance benefits expected, but also because products can be used to express consumers’ personality, social status or affiliation (symbolic purposes) or to fulfill their internal psychological needs, such as the need for change or newness (emotional purposes) ( 2002). Furthermore, consumers can either be subjective or objective, testing the persuasiveness of brand names. Retail stores selling the products also play an important role in swaying the decisions of consumers. The whole package or visual appeal of the retail outlet can determine sales, or the service of the sales ladies or the clerks. As such, Adidas Shower Gel was packaged creatively to appeal to the curiosity and taste of the consumers. Its icy tinted and corrugated texture of the bottle poses class that make the product stand out beside other brands of shower gel.
Segment, Target and Positioning of the Product
Of all the components of a marketing plan, perhaps the most overlooked but most critical element is the definition of the target market. According to (2000), it is a homogenous group of people or organizations that a company wishes to appeal to. There are two basic targets for a product or service: the user and the non-user segments. Thus, there are also two business and marketing decisions that the company must decide upon in light of the basic targets. The first is to cultivate the present market alone while the second is to go after non-users. The former can inspire consumer loyalty which is an important factor in the survival of any business. In introducing Adidas Shower Gel, Procter & Gamble Hong Kong Ltd will categorize its target market into two market segments: (1) the Adidas Shower Gel users or those who have already tried the product, and (2) the Adidas Shower Gel non-users.
The Adidas Shower Gel users are further classified into (a) males and (b) females in order to differentiate the market appeal and competitiveness of the offered products in terms of sex as well as the specific users of the four specified variants in order to determine the competitiveness of each product per se. the Adidas Shower Gel non-users, on the other hand, are further grouped into (a) those who do not use shower gels in general, and (b) those who use other shower gel brands. These market segmentation schemes according to product use will provide important information regarding the overall competitiveness of the Adidas Shower Gel products as well as viability and opportunities for encouraging shower gel non-users to not just try any other average shower gel but to choose Adidas Shower Gel products among others.
Moreover, companies now face the challenge of making its target consumers respond accordingly to their marketing efforts and those who understand its consumers’ responses will have a great competitive advantage (2001). In this light, the P&G management as well as the advertisers will keep in mind the differences that are distinct between and among the Adidas Shower Gel target market based on different cultural backgrounds which significantly affect the effectiveness of the campaign. The fact is, there may be ideas that will not be applicable across the diverse target market population. Studies on the relationship of consumer behavior and their personal values and cultural orientation as well as their beliefs on certain principles, the dispositions they hold and side they take on political, gender and social problems and issues will be likewise duly accounted.
Integrated Marketing Communications (IMC) Strategy Statement
Channel communications works in a two-way system wherein information transfers to the user and bounces all the way back to the producer (1992). In other words, marketing communications works like a feedback system, which allows company producers to relay information to the customers. In response to the provided information, consumers give certain reactions or behaviors. According to(1990), if consumers somehow become better customers — that is, more knowledgeable, participative, or productive — the quality of the service experience will likely be enhanced for the customer and the organization.
Rather than going after every potential source of revenue, companies eliminate useless assets that do not add value for customers’ satisfaction. Business organizations implement bureaucratic policies and procedures for the benefit of the staff, customers and the company in general. In the case of introducing Adidas Shower Gel in the Chinese market, the integrated communication plan strategy that will be utilized and which will serve as the guiding principle of the execution of the project follows the corporate values of the Adidas company in order to effectively promote the products through the undeniable success of the Adidas as a globally competitive and successful company.
Adidas, as a company, believes in the importance of striving to be a global leader in all the sporting goods industry researching and developing products based on the needs of individuals with passion for competition and a sporting lifestyle through customer value. In line with this, the company keeps on advancing its entire business operation by increasing and enhancing the quality, look, feel, and image of its products as well as the whole organizational structure to meet the expectations and demands of the market providing them with highest value. As innovation and design leaders, the members of the company continue to support the athletic lifestyles of the market through new products. In order to maintain and increase lasting competitive position and financial performance, the company conceptualizes brand and product strengthening strategies to broaden market penetration while balancing cost control and working capital improvements considerations, thereby forecasting growth ().
As such, the current approach of Adidas Shower Gel products launching strategy are long-term objectives that focus on creating product value to gain the lifetime loyalty of the Chinese consumers which include (1) maintaining a strong core business in the cities of Shenzhen and Guangzhou, (2) to gain competitiveness in healthcare products and sports-related market offers, (3) to grow internationally, and (4) to move into retailing services through on-line marketing and shopping.
Advertising and Brand Strategy
Cultivating customer loyalty is about establishing a relationship between the company and its consumers (, 1997). This is emphasized by (1997) who considers that gaining consumer loyalty is a business’s most advantageous strategic purpose because it has a constructive effect on company, culture, development and the bottom-line. Aside from being a strategic purpose, gaining consumer loyalty is also a key corporate challenge today especially in the increasingly competitive and crowded marketplace because of the eventual and inevitable profitability it will provide the company ( 1997).
The Adidas Group is particular in maintaining the strength of the brand in the goal to lead the sporting goods industry by maximizing consumer impact and enhancing brand profitability applying the five key strategic approaches. These include (1) matching the organizational structure to the customers by anticipating and meeting the demands and expectations of the market; (2) extending design and innovation leadership by being sensitive to the dictates of and trends in the consumer demand or buying behavior of the clientele adapting technological means to widen product design and innovation reach; (3) developing leading positions in all major markets by adapting competitive stance that is committed to the aim of the company to excel and best other brands accelerating revenue growth and focus on selected consumer group; (4) achieving excellence in execution through consistent on-time retail delivery, ensuring best quality and the commitment and ability to go the extra mile for the customer along with shortening and streamlining global supply chain, maintaining the best-practice social and environmental standards, continuous optimization of the own-retail activities to best showcase the brands and products and to improve customer services; and (5) focusing on financial performance through effective management of working capital and generation of significant free cash flow to reduce debt and optimize financial leverage as well as increasing returns to shareholders through share price performance and dividends ().
However, customer loyalty is not a one-sided arrangement with the company reaping all the benefits. The customers also expect to be rewarded for patronizing the company. Aside from assuring customer satisfaction, the company will also devise strategies that will make the regular customers buy more or try new products of Adidas Shower Gel. This includes (1) distribution of samples, (2) discount coupons to customers in the retail stores, (3) rebates, (4) price-off particularly a few months after the launching period, (5) bonus packs or tie-ups with the companies other products during the launching period, (6) sample packs, (7) special packs, (8) premiums, (9) free trials for new customers, (10) warranty or free health consultation on booths, (11) prizes through raffle draws, (12) issuance of patronage card/reward, and (13) product sponsorships for contests that are both directly and directly associated to the lifestyle of the target market. Discount coupons and club cards will serve as a marketing strategy to developed similar loyalty schemes in order to identify and stimulate brand awareness in the Chinese market. These database marketing and loyalty programs, the ultimate promotion strategies for the retailer are powerful, highly segmented customer-oriented forms of promotions, encouraging customer retention and purchase activation.
Moreover, (1996) emphasized the idea to take advantage of the competitive situation not just by being better in how that product gets sold, serviced, and marketed at the customer interface. It requires that companies create breakthroughs in how they interact with customers, and design a way of interacting that makes an indelible impression on customers, one that so utterly distinguishes them from others that it becomes a brand in itself (p. 14). This will be likewise considered in conceptualizing other advertising and brand strategy schemes to effectively launch Adidas Shower Gel products in the Chinese market.
PR Strategy
Business in our society plays a very important part in “shaping the structures of our society” and in “challenging traditional values” ( 1993). Corporate competitiveness will be achieved by those companies that are successful in formulating, implementing and communicating sound global strategies. For decades, corporate strategy practitioners and academic researchers have drawn widespread attention to the importance of formulating comprehensive, sound, futuristic corporate strategies ( 1996). Corporate strategic success can be figured out by strategy implementation of the companies’ core objectives in order to achieve the long-term goals and mission of the organization.
The company’s social responsibilities should be taken seriously by supporting local charities, funding educational scholarships, and contributing to the socially relevant causes and projects that get publicity. By linking with like-minded public and private sector organizations, particularly groups that pursue sports events and other athletic cause (such as local community based organizations, colleges, and chambers of commerce), makers of Adidas Shower Gel should consider visibility in economically disadvantaged areas in the host country. Moreover, sustainable development efforts of the organization through environment-friendly social drives that promotes responsible waste management along with other cause-oriented social activities in communities where availability of Adidas Shower Gel products exists are enhanced and supported.
Media Activities and Recommendation
According to (2003), there are at least four types of resources which the company can use to achieve its objectives: financial, tangible, human and technological resources. Organizations that capitalize on customers’ active participation in organizational activities can gain competitive advantage through greater sales volume, enhanced operating efficiencies, positive word-of-mouth publicity, reduced marketing expenses, and enhanced customer loyalty (1979; 1990).
The changing world has then placed much emphasis on the importance of communication for effective marketing. All types of communication are involved in marketing communications, including literature, training, advertising, mail, telephone, product promotions and other contact relevant to marketing communication. Among the channel members, even follow-up on complaints as well as customer billing may be included within the communication loop. In order to effectively serve the marketing channel, correct timing and accuracy in communications is essential. Moreover, it is important for the company to recognize that all members of the channel have an obligation or important role in maintaining the efficacy of marketing communications.
Some of the ways that companies acquired cost advantages are by improving process efficiencies, gaining unique access to a large source of lower cost materials, making optimal outsourcing and vertical integration decisions, or avoiding some costs altogether. If competing firms are unable to lower their costs by a similar amount, the firm will be able to sustain a competitive advantage based on cost leadership. In the case of Adidas Shower Gel products, P&G should review supply chain management strategies in order to implement the most efficient and effective delivery of supplies to retailers that will serve economic cuts on the company’s expenditures as well as value of time.
The management initiated product development strategies by marketing their existing products in a new market, exporting products in different areas of the region and thereby advancing opportunities of increasing market penetration and market share. To ensure the success of the product launching in the retail industry as a fast-moving consumer good, the P&G should investments in store promotions as well as multi-media advertising in low-income areas in China.
Other Marketing Communications Activities
The long history and practice of people across different countries and cultural identities could be very overwhelming in the challenge that it presents to business and advertising individuals who have ambitions to take the extra mile of gaining a share of consumers and clients from varying localities abroad. Today the array of possibilities in applying the marketing strategy of international advertising is unimaginable. Instead of taking the technological barriers as hindrance and drawbacks in the international business operations because of the technological divide that cuts across the people from different social status, looking for avenues of more strategic and effective campaigns and treating such drawbacks as opportunities nay result to favorable outcomes.
E-commerce removes the geographical separation between regions, and made dealing with foreign trade a snap. E-commerce is just on its initial phase in China, but it is expected to grow as the Ministry of Information Industry starting to structure the basic framework for e-commerce development, rules and regulations. As such, the arrival of broadband internet means that more and more people will shop online – suggesting there is plenty of room in the market for the convenience store and its competitors. Service differences are likely to smooth out, making it more likely that people will choose on the basis of price and brand loyalty. With this, the management will need to reassess its goals as well as opt to take on a differentiation strategy by promoting unique attributes that are valued by customers and that customers perceive to be better than or different from the products of the competition
Project Timeline with Work Breakdown Activities
Recommendations as to how the company will conduct its marketing communications plans is governed by the assumptions that using the right mix of advertising tools (TV, Internet, print and radio) will allow the company to get the best of online and offline advertising. Following is the six-month communications plan for the launching of the company.
June – July 2006. This is when initial collaboration with prospective advertising partners should be done. They should be selected by virtue of their reputation and performance in handling advertising tasks. The company will contact partners that will cater to its need to be publicized online and offline. Specifically, the company will employ extensive new media, TV, radio, and print campaign. Each would-be partner will be given the chance to present their marketing plans for the company. There will intensive negotiations between suppliers, assessment of artworks, and evaluation whether such marketing strategies are designed following the company’s objective. The activities will include the following:
· Complete a detailed situation analysis to examine the context of the environment and to determine the need for the project.
· Involve the stakeholders of the project so as to consider their needs and preferences.
· Identify alternative options of the organization so as to exhaust the available alternatives.
· Set the assumptions and objectives of the project to distinguish the direction as well as the standards for project assessment.
August – September 2006. Once the right mix and budget communications were decided, it is expected that at this time of the year, all the advertising outputs will be ready for their launching nationwide. The advertising efforts will be completed by criteria to measure its effectiveness. Intensive researches will be implemented to determine the success of each campaign tool. Advertising media could be in the form of brochure, newsletter, printed materials, the Internet, newspapers, radio, and television. The communications department of the company will be directly responsible on monitoring the content design, layout, dissemination, and communication training and development for employees and executives. Furthermore, the department is also expected to supervise all the market and attitudinal research. The activities will include the following:
· Determine project size in order to limit the concerns of the project, identify the necessary resources, and evaluate its feasibility.
· Examine the available resources whether material or human that should be acquired to meet the goals of the project.
· Analyze the risks, benefits, and costs of the project so as to ascertain the project’s financial return that will assist to the long-term goals of the organization.
· Develop a master plan that details the focus and concerns of the project’s goals.
October – December 2006. The last period of advertising campaign will focus on the maintenance and management of media relationships. Research findings must guide the company on appraising its marketing approaches. All the steps that will be taken must be geared towards the determination, development, and design of the organization image, presence, and reputation. The activities will include the following:
· Document all the development and changes of undertaking the project at all its stages.
· Coordinate planning and project efforts between all of the project participants.
· Effectively and efficiently manage information, technology and people.
Budget Allocation
Companies employ marketing communications in order to gain several benefits such as increased profits and enhanced customer relations. The application of strategies directed towards the achievement of these objectives naturally requires the allocation of financial resources. However, while the company is capable of providing a budget for marketing communications, the outcomes should be able to recover these allocations. Hence, in order to prevent capital losses, the company should employ strategies and create objectives that are compatible to the capacity of the company and what it intends to achieve.
With HK.5 million to complete the project, it is estimated that about one-fourth (HK5,000) of the budget will be spent in conducting researches to determine which partners will best serve the company’s ends. The company will spend approximately half (HK0,000) of its allotted budget for advertising materials, product placements, and training and development of marketers. Lastly, the company will allot the remaining budget (HK5,000) on the maintenance and management of media relationships
Monitoring and Control
The art of planning for the future has always been a human trait as humans are thinking individuals. In essence a project can simply be captured on paper with a few simple elements: a start date, an end date, the tasks that have to be carried out and when they should be finished, and some idea of the resources (people, machines etc) that will be needed during the course of the project. When the plan is one which involves different things happening at various times, some of which are interconnected on each other, plus resources needed at varying times and in different quantities and perhaps working at different rates; monitoring and control of the project is required for its successful and timely completion. The following activities will be initiated during the entire monitoring and control of the marketing campaign:
· Detail the activities undertaken to close the project.
· Outline outstanding issues, risks, operational matters and recommendations.
· Determine if the objectives of the projects were met.
· Deliver all the outputs generated by the project.
· Enumerate the significance and benefits to justify the cause and rationale of undertaking the project.
· Prepare a report or presentation that will detail the accomplishment of the project.
· Monitor and regularly evaluate the development to ensure the timely completion of the project.
· Ensure a logical intervention strategy to minimize the unnecessary impact of undertaking the project.
· Identify cross-cutting objectives to be able to work on the project based on the assumptions considered.
· Prepare back-up plans to supply assist for the possibility of unforeseen difficulty during the course of the project.
· Plan for capacity development and sustainability to ensure the continuous implementation, control, and evaluation of the project.
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