Anti Aging Cream-Vichy
The following report is based on LifeActiv which is VICHY Laboratories anti aging cream The main focus of the report is to gain a better understanding on the different aspects to be taken into consideration in the process of Marketing and selling of a product in an assigned territory. The chosen territory is the city of Mumbai.
The product is targeted at women within the age group 30-60 in the middle or high income level.The marketing strategy adopted is mainly to develop a strong chain of chemists and dermatologists to market and sell Vichy products. A sales force of 5 representatives is proposed to undertake selling and promotional activities. A detailed training and development schedule is discussed for the salespersons clearly defining their roles and territories. The benefit statements of the customer are prepared under different response modes to help us understand the value that the product can offer to its end user.Preparation of the project time line is done evaluating the time which will be taken by the territory manager at each and every step of the process. To evaluate the performance of each sales person a Monthly Information report is prepared.
The closing materials give the information about the terms and conditions of the purchase order; it provides us with the proforma invoice and regulations followed by the organization. 2 Table of Contents. Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21Topic Introduction Industry Analysis Company overview Product Description Product Segmentation Customer profile Product Sales Channels Product Market Grid Job Profile of Salesman Job Description Training Document Benefit Statement Comparative Analysis Market Development Plan Territory Allocation Sales Call Sheet Sales Force Calculation Financials Monthly Information System Project Time Line Closing Material PageNo. 4 4 4 5 6 7 8 9 10 10-11 12-13 14 15 16-18 19 20-21 22 22-30 31 32-33 34-43 3 Introduction Cosmetics are conventionally bundled into three categories — skin lightning, moisturizing and anti-aging.Anti-aging products are used in modern times to reduce the physical appearance of aging such as wrinkles, sun spots and skin damage.
Some anti-aging products are geared toward middle-aged people to reverse the effects of aging. Other products are marketed as preventatives to slow or stop aging before it begins. These products address the problem of preventing, reversing or slowing the effects of aging among people. Some well-known treatments have been in use for centuries, while others have only just been introduced. People’s desire to look younger has boosted the anti-aging products market into a multibillion dollar industry.Industry Analysis Market research firm ACNielsen puts the anti-aging cosmetic market in India at over Rs 100crore. Though just over 3% of the country’s Rs 3,000-crore skin care market, the anti-aging segment is the fastest growing at 93% year-on-year.
Although the modern Indian consumers are opening up to the western products, it is important to take notice that the larger consumer is still of a traditional mindset. There has been strong influence of ayurvedic and home remedies for the ordinary Indian consumer when it comes to skin care and beauty.The Indian anti aging segment is flooded with many products from domestic and international markets. This Industry is facing a major threat from the substitute treatments like Botox, Anti Aging pills, Ayurvedic products of brands like Himalaya and Shenaz Hussain, Skin Therapy Clinics like KAYA, specialized health foods and beverages, etc. Some of the major players of the industry are P&G, HLL, L‘Oreal, Revelon, Lakme, Clinique, Lancome, Neutragena, Oriflame, Avon, Nivea, Vichy Laboritories, Johnson & Johnson, Garnier, and Amway. Company OverviewSince it was founded in 1931, Vichy Laboratories’ mission has always been to help every individual to optimize their skin’s health. In doing so,they are dedicated to giving you a comprehensive knowledge and understanding of your skin’s physiological mechanisms with the ultimate goal of promoting good skin health and beauty.
Their expertise ranges from skin aging to skin dryness, acne prone skin, and sun protection. Vichy Laboratoires is the No. 1 skincare brand in European pharmacies. They offer a diverse range of allergy-tested products. 4Product Description LiftActiv Anti-wrinkle and firming cream This product is created and developed to make your skin look younger, brighter and rejuvenate. While many other creams boast of reducing fine lines and wrinkles, this serum penetrates the skin and works at the DNA level to reduce wrinkles as well as reduce redness, sun spots and reduces the size of pores. Ongoing use of these products is a must and must be continued all your life in order to maintain the look and appearance of beautiful smooth skin.
The product is sold in a 50 ml jar for Rs. 1490/-Positives of the Wrinkle Cream ? ? ? ? ? ? ? ? ? Medical grade ingredients backed by clinical studies Reduces the size of pores, giving skin a smoother, brighter appearance Leaves skin stronger and healthier A REAL Alternative to Botox Skin is visibly re-tightened and wrinkles are smoothed from within. Breakthrough Technology continuously releases pure Vitamin C into the skin for 24 hours. Contains Keratolytic ingredient to boost cellular multiplication during the day. Reduces redness, sunspots, discoloration Works at the DNA level to eliminate wrinkles and prevent them in the future Product Segmentation The anti aging product is targeted at women in the age group of 30 to 60. It is meant for the Upper middle and higher class of society. The primary buyers of this product will be professionals who are in the service industry and who are required to maintain their physical appearance to remain in their profession.
Professional Necessity: Actors, Models Primary Segment Work Requirements: Air Hostesses, Receptionists, Journalists Secondary Segment Tertiary Segment Social Standing: Corporate Executives, House wives. 6Customer ProfileName: Neetu Singh Age: 38 Profession: Assistant Vice President; DBS- India (Development Bank Of Singapore) Office Location: Lower Parel Residence: Andheri West, 7 Bungalows. Work Time: 9-5. Being a workaholic, she normally returns home at around 9 pm. Nature of work: Stressful, Consistent Delivery demanded, High Responsibility. Daily Diet: Breakfast-Canned Fruit Juice or milk with Cereals and Bread. Lunch- Office Canteen (Including fresh fruits and salad) Dinner- Home Cooked Food Family: Husband Mr.
Deepak Singh ( HSBC Senior GM) and a 10 year old son Gaurav.Traits: Confident, Straight forward, Practical. Likes: Travelling, Reading, Movies. Other Grooming Products use: MAC-Make up, Kerastase-Hair care, Vichy- Night Cream. Introduction To Vichy: A free sample at a shopping mall. Usage: Applies daily and consumes a 50 ml bottle every 60 days. Product result: Very happy with the visible change.
Has become a brand ambassador and has convinced others (2 colleagues and 4 friends) to use the product. 7 Product sale Channels: I. Dermatologists: There are around 650 dermatologists in Mumbai. For the promotion of our product these dermatologists will have to be categorized as under:Category A: 50 Doctors These are the top most practitioners of dermatology and specialize is cosmetology. The average daily patients that these doctors see are 60-70. The location of these doctors is in prime areas like Churchgate, Mumbai Central, Dadar, Bandra, Juhu, Andheri, Cuffe Parade, Colaba, Etc. These doctors have relatively high knowledge about the products like Vichy and are aware of its advantages hence they need less convincing and high persuasion.
There is heavy importance given to cater to this category of doctors as they cater to the same market segment as our prospective customers.The Category A doctors will be approached 3 times a month by Vichy representatives. Category B: 100 Doctors These are doctors who have a decent patient inflow of about 30-40 per day. They are less aware of medicated cosmetology so they need a higher deal of convincing. Once they are influenced to prescribing the product, a significant amount of revenue can be generated from them. The category B doctors will be approached 2 times a month Category C: 500 Doctors The doctors in this category are catering to a mass audience and are not in line with our target audience.Still we cannot completely ignore this segment as they have the potential for some business.
After carefully evaluating certain doctors who can add value to our sales, we should keep these doctors informed about our product. The Category C doctors will be approached once every month. II. Chemists: Since our product is placed under medical cosmetics, we need to target setting special Vichy counters at some selected Chemists. The chemists have to be selected according to the location, size of the store, foot fall of customers and sales. A total of 50 chemists are selected for setting 8 up of Vichy counters.These counters are manned by a representative from the company who attracts potential buyers and explains them about the product.
There are free samples and brochures given to create awareness about the product. The 50 chemists are further classified under three categories (A,B,C) so that there can be higher focus on key performing units. Product Market Grid Prospect Customers To Stock Vichy Products Dermatologist Cosmologists Chemists Shopping Malls Gymnasiums General Stores Beauty salons Spas Prospect End Consumers Actors Models Air Hostesses Female Corporate Executives Housewives Receptionists ? ? ? ? ? ? Vichy LiftActiv ? ? ? ? ? ? ? 9 Job profile of the sales man A great salesman needs to possess a pleasing personality and excellent communication skills. He should radiate high energy levels and enthusiasm. A sense of empathy to identify with the customers as well as ability to identify customer needs would be a great asset. A never give up attitude helps in facing challenges head on. Ability to plan well and execute are critical.
A good commercial sense enables right investments. Ability to organize and plan helps manage territory and above all a zeal to succeed keeps the sales person highly motivated despite all the challenges.Sales people should be able to identify the needs of potential customers and create a solution to persuade them to buy products or services. A well as finding new business, sales representatives are responsible for maintaining existing accounts and ensuring existing customers are getting the service they want. The sales man will usually work within a specific area, calling in person or by telephone to make appointments to show products or services, negotiating sales and after-sales services. Other duties may include dealing with records, accounts and paperwork.In addition to generate sales, the sales man will also be assigned with developmental activities for this product.
These activities will have to be co ordinate with the sales manager of the allocated territory. The salesman is assigned to attend to 6-7 sales calls per day, generate database of prospect customers throughout the week, on all Saturdays he is assigned to handle only developmental activities. The core skills a sales executive needs are excellent communication skills, commercial awareness and self-motivation.A detailed knowledge of company products and those of competitors through training, but the ability to persuade and negotiate to win customers or sales is something he has to develop. Job Description of Salesman In any setting, the process of selling involves contacting potential customers, identifying their needs, persuading them that your products or services (rather than those of competitors) can best satisfy those needs, closing the sale by agreeing the terms and conditions, and providing an aftersales service. Medical sales representatives do all of this and more.In particular, typical work activities include: ? Arranging appointments with dermatologists, pharmacists, which may include pre-arranged appointments or regular ‘cold’ calling; targeting all the dermatologists and cosmologists in Mumbai.
10 ? ? ? ? ? ? ? ? ? ? ? ? ? ? Making presentations to doctors, practice staff, hospital doctors, and pharmacists in the retail sector. Presentations may take place in medical settings during the day or may be conducted in the evenings at a local hotel or conference venue. Organizing conferences for doctors on weekends.Building and maintaining positive working relationships with medical staff and supporting administration staff e. g. receptionists, distributors, etc Managing budgets (for catering, outside speakers, conferences, hospitality, etc); Keeping detailed records of all contacts and reaching (and if possible exceeding) annual sales targets. Planning work schedules and weekly and monthly timetables.
This may involve working with the area sales team or discussing future targets with the area sales manager. Regularly attending company meetings, technical data presentations and briefings.Keeping up with the latest clinical data supplied by the company and interpreting, presenting and discussing this data with health professionals during presentations. Monitoring competitor activity and competitors’ products; Developing strategies for increasing opportunities to meet and talk to contacts in the medical and skincare sector; Staying informed about the activities of health services in a particular area; Working with team manager to plan how to approach contacts and creating effective business plans for making sales in a particular area.Analyzing Data or Information — Identifying the underlying principles, reasons, or facts of information by breaking down information or data into separate parts. Resolving Conflicts and Negotiating with Others — Handling complaints, settling disputes, and resolving grievances and conflicts, or otherwise negotiating with others. 11 Training Document The objective‘s of the training are to : ? Build the sales teams competency on the scientific aspects of the product and its mode of action and effects on skin ? Impart selling skills , soft skills and territory management Training Modules Technical ?Skin and skin structure ? Different type of skin textures ? Impact of environment and sun ray‘s on skin ? Process of skin ageing ? different types of treatments and procedures Product Knowledge ? Role of each ingredient ? Method of application ? Duration of treatment ? Effect of the product ? Trials done with product and findings ? Comparison with other treatments ? Cost comparison‘s Skills ? Sales Call Model ? Gathering Intelligence ? Objection handling ? Influencing ? Retailing ? Project management ? Presentation 12 Territory Management ? Customer Targeting and Segmentation ? Customer list ?Business Planning ? Work Planning ? Cycle planning Role Plays ? Handling different types of customers ? Negotiating with Chemists ? Group presentations 13 Preparation of benefit statement for each of the buying influences.
Characteristic for the Product: Helps you look younger. ? User Buying Influences: What does it do for me? Makes me look younger, gives me self confidence in social groups, and enhances my personality at work. ? Economic Buying Influence: What is the return on investment? Restores beauty and provides better complexion. What is the surety that the product will show the desired results on me? Is the product really ? Value for money‘ when there are alternate products and remedies which are much cheaper? What can be the side effects of the using such a product? What is the duration in which visible results will be shown? 14 Comparative Analysis with two Competetors Particulars Price (50 ml) Volume or Value driven VichyLiftActiv 1490 High Value Low volume Olay-Total Effect 699 Moderate value Moderate volume Sushmita Sen/ Soha Ali Khan Shopping Malls/ General Stores Ponds-Age Miracle 450 Low value High Volume Brand Ambassadors DistributionDermatologist Prescribed Aishwaria Rai Bachan (under LOreal) Special VICHY stores / Medical stores / Shopping Malls YES Malika Arora Khan/Mehr Jesia Shopping Malls/ General Stores NO NO Promotional Message Promotional activity Market Share Technically advanced and quality product 7 day challenge 11% Fights 7 Signs of Aging 28 day challenge 17% Married Women are happy 7 day challenge 37% 15 Marketing development plan for the territory allocated to the manager 1. Dermatologists Since the product is not just positioned as a cosmetic product, the background of the company is that of medical cosmetics.The marketing plan has to exploit the unique dermatology expertise that VICHY boasts of using while developing their product. The Marketing manager has to successfully track the dermatologists in Mumbai and convince them to sell or prescribe Vichy products 2.
Organize Conference There have to be conferences held in Hotels or Banquet halls in which top dermatologists of an area should be invited. A lecture on the technicalities and benefits of the product can be conducted by a top foreign Vichy researcher. This will significantly influence the doctors to be associated with our product. 3.Display at Chemists The marketing manager spots top chemists which are located in residential areas that are home to the upper class of society. The core areas would be Andheri, Juhu, Bandra, Pedder Road, Cuffe Parade , Churchgate, Colaba. The top chemists are approached and a small counter of Vichy products is placed at the entrance or in the shop.
There is a dedicated Vichy consultant present at the counter who approaches potential customers and brief them about using Vichy products. Providing these potential customers with a free sample which can last for 3-4 days will help in building confidence about the product.This activity can be conducted in a phased manner for a couple of months in one locality and then moving on to other areas. 16 4. Sale Organizing a sale for a specific period in a couple of locations at the same time will improve brand visibility. 17 5. Internet Marketing Creating blogs and websites where Vichy products can get instant online help from experts and other Vichy product users will help build confidence among consumers.
The company can offer free trials on the website. A limited number of potential customers can be delivered with free samples for promotional purpose. 18 Territory allocation 9 Sales Call Sheet Name of Salesperson : Date: Prospect Information Company/Client Name: Type of Business: E-Mail Address: Telephone Number: Fax Number: Web Site Address: Address Line 1: Address Line 2: Address Line 3: Address Line 4: City: State/Province: Country/Region: Serial No: Postal Code: Main purpose of the call and expected outcome Customer Participant Name: Telephone Number: E-Mail Address: Job Title: Department: Issue Date: Issue Time: Issues Competitive Analysis Our Strengths Resources Required and Planning Connecting the previous call 20 Customer’s requirements and concernsSolutions to the customer’s requirements Next Appointment Details Closing the deal 21 FINANCIALS Sales value One Rep Will Generate in one month. Per Rep Segment Category A Category B Category C Total No of Drs 30 40 100 170 patients / week **7 3 0. 5 Patients /Month 28 12 2 60 cost / pack *1052 1052 1052 Sales value /Month 883680 504960 210400 1599040 *The sale price of one bottle to the distributor will be Rs. 1052. The Maximum Retail Price per bottle is Rs.
1460. **The figure 7 is estimated by assuming the following: The sales representative will be communicating to 30 Category A doctors in a month.These doctors see 65 patients per, and 390 patients in a week. Our product can be recommended to 20% of all the patients that are visiting the doctor. Therefore 78 patients have been recommended by an expert dermatologist to use Vichy‘s anti aging cream. The most optimistic assumption is that 10% of the customers advised will actually make the purchase. Hence it is concluded that in a week‘s time 7 patients will buy the product.
A similar assumption is made for the rest of patients. Calculation of Sales Force required. One sales representative makes 8 calls per day and 170 in a month.