3.0 BUSINESS VISION, MISSION
Mission
Noode has a mission to create high quality skin care products satisfying needs and wants of generation me with lower prices. Noode of tomorrow will become synonymous to “Beauty is all yours”
Vision
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Noode has a vision to be one of the leading skin care product distributor and manufacturer in cosmetic industry for “Generation Me” to help them conquer early signs of aging and experience excellent skin.
Corporate values
- Noode is determined to continue being creative and innovative, to aim for product excellence to meet the demanding standards of quality products and safety at all the times.
- Customer focus is to understand, listening and giving people what they need and serve the beauty and well-being of our consumers in all cultures throughout the world
- Leading innovation by research in business marketing, to identify sensitivity to consumer needs in terms of scientific rigor and expertise essential that drives creativity and contributes to developing the cosmetic of tomorrow
4.0 EXTERNAL MARKET AUDIT
4.1. Macro Environment
Every organization should understand their operating environment as it allows them to take advantage of the opportunities and minimize threats. The following pest analysis illustrates the environment of UAE in which Noode will be operating.
Political and Legal
UAE is a low crime and politically stable economy; as a result foreign investors are attracted to UAE as diversification strategies. The UAE government is on a regular effort improving business relations with trade and investment partners in US and Asia.
Economical
Increase in Oil prices and non oil based revenue witnessed a high growth rate of the UAE’s The UAE is strategically located in the midst of one of the richest regions and is served by over 120 shipping lines and linked via 85 airlines linked to over 130 destinations making it an attractive industrial hub coupled with No corporate and income tax, low custom duty of 4% and no foreign
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exchange controls makes it more attractive for foreign investors.
High inflation rates and fear of possibilities of exchanges rates de-pegging against the US$ keeps the investors away from making huge investments in the UAE economy.
Pest Analysis
Table 1 – Pest Analysis
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Social
Arabic traditions and cultures are respected by affluent nationals. A notable concern is on the nation’s preference of Islamic value based products like Sharia complaint Islamic Banking products, Islamic Sukuks, etc.
The economy has a multinational workforce and cosmopolitan lifestyle which encourages foreigners in investing in the economy as compared to other countries in the region. People can follow any religion and culture.
Technology
There is huge investment from the government to develop the infrastructure, good telecom system, internet facilities, etc. The implementations of the latest technologies to support the banking system have made UAE as advanced as any other developed economy in the world. The findings of the external marketing audit are summarized in the Exhibits below.
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4.2. Micro Environment
The analysis of the competitiveness that is prevailing for Noode in the UAE market is made within the context of ‘Porter’s five forces’ and is expected to highlight the strength and weaknesses of each force in order to understand their impact
Diagram 1 – Porters Five forces
Threat of New Entrants – Moderate
UAE has strict regulations when it comes to imports of toiletries and cosmetics. The exclusive and profitable trade environment persists to open more opportunities for foreign companies to step in especially during Dubai Shopping festival and Gulf Beauty Expo. However consumers in this part of the world are more selective in their choice of personal care items. Hence opt for international brands which are trusted and famous
Bargaining power of Suppliers – Low
Since Noode is a supplier with the aim of due rapid expansion in the country infrastructure to accelerate in available retail space in the coming five years, the opportunity to trade via the Jebel Ali Free Zone is favored and with out VAT the risk is low.
Competitor rivalry within Industry - High
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Cosmetic and toiletries manufacturers are moving to UAE to target the high consumption of cosmetics and toiletries “According to a recent survey, consumption of cosmetics and fragrances in the Gulf States is among one of the highest per capita in the world with the average purchase estimated in the region of AED 1,229 per head,“ said, Mr. Eckhard Pruy, CEO of Epoc Messe Frankfurt toi (N.A.2008).Since Noode will be newly launched and the competition is high, Noode has develop a good name for itself to make it exclusive and successful
Bargaining Power of Buyers – High
The Bargaining power of Buyers can be considered as a high threat as they are constantly looking for better pricings. There are many skin care products company who are offering high-quality products at attractive prices and customers can receive benefits at finer rates. Therefore quality and price is important to attract customers and avoid losing them to competition.
Threat of Substitutes - High
According to recent study the space in shopping malls of UAE has been growing by approx 50% yearly out of which the retail space dedicated to beauty products from around the world has grown by over 30% in the past three years. This demonstrates that there are several international brands in the market offering high quality products at affordable prices.
I
5.0 INTERNAL MARKETING AUDIT
The internal marketing audit provides us an insight into the various activities and overall performance of Noode. The section includes the following:
5.1 Operating results
Noode is a New York based company started in 2001 after working for Japan’s largest cosmetic company Shiseido Co. Ltd., Noode has products designed for women between age of 15 to 30 to slow and possibly prevent the appearance of skin aging, with their products ranging from $15- 20, Noode estimated sales for 2003 was 2.5 million and has showed no signs of slowing.
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5.2 Strategic issues Analysis
Noode has a vision to be one of the leading skin care product distributor and manufacturer in cosmetic industry for “Generation ME”. It continues to provide the best skin care products to its customers and effective cost effectiveness service standards. Noode has also conducted various workshops and skin care programs to help their customers overcome the skin problems in order to make them realize that company is keeping a close eye to make them look better
5.3 Competitive Advantage
The company has a competitive advantage on other products since they are in Market with motto of Generation me. Noode has also low product rated than other companies in the market. It has a very positive image in generation me in skin care industry
5.4 Core competencies
- Wide range of quality products designed to meet the needs of young consumers
- Experienced and loyal stuff.
- Country wide reputation
- Conservatively priced
- Innovative style of packaging
5.5 Product Mix Effectiveness
Noode provides wide range of skin care products manufactured to meet the need of young people ages fifteen to twenty-nine in the market, a group he named “Generation Me”. Noode offer products to overcome serious skin care problems with the focus on prevention, with the products names tied in generation me market; Clean ME face wash, scrub me gently facial scrub, make me soft facial moisturizer, help me acne cream, renew me face peel, make me moist body lotion, rub me massage oil, wash me everywhere body wash, scrub me harder body scrub, and the newest product shield me sunscreen gel. All these products do not contain sun protection except Me sunscreen gel(launche in 2002 spring), since the founders believes Generation Me prefers to look
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tan. The Price points of Noode range from $15 for the Rub ME and scrub Me products to $20 for the help Me acne product. These products are famous in market due to their innovative style of packing referred to as “tottle”, this helps prevents accidental discharge of the products
5.6 Product Life Cycle
Diagram 2 – Product Life cycle
As per the BCG,
Noode has
achieved a
reputation in the market where most of its products can be positioned as “cash cows”. The
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new launch of its products in UAE is expected to have a fair growth rate but need to capture the market share in order to become a “star” and eventually be a “cash cow”.
6.0 SWOT ANALYSIS
Our main strategic focus will be to penetrate in to the UAE market by advertising aggressively to make a mark in market. Our target would be to capture clients between age group between15 - 29 and above in future.
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Table 3 – SWOT Analysis
7.0 MARKETING OBJECTIVE
Our strategy is to penetrate into existing & new markets by developing quality skin care products to ensure that all the products provided by competitors are offered to affluent customers. To help penetrate into new markets we need to develop new value added products to attract the customers.
7.1 Strategic thrust
We give below the strategic thrust (Ansoff Matrix) of Noode
PRODUCTS
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Table 4 Ansoff Matrix
7.2 Strategic objective
Noode is employing different strategies as detailed under:
Execution: No company can deliver on its commitments or adapt well to change unless it practices the discipline of execution at all levels. Execution is to be part of a company’s strategy and its goals. Better exception will no doubt help company make a mark in the targeted market.
People: An organization’s human beings are its most valuable recourse for generating excellent results year after year. Their judgment, experiences and capabilities make the difference between success and failure. Noode’s key objective is to attract Generation me by their quality products at lower prices and their packing and experience being fun and cool and not being a novelty.
Processes: Processes are where the things that matter about execution need to be decided. Processes are tightly linked with one another to ensure synchronization
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Feedback: Customers feedback plays an important role; Mr Seth Ratner founder of Noode helps students of the university where he is currently working to recognize their dreams by getting feedback on Noode skin care products and has produced 2 products after received the input and continues to improve and produce new products via feedback acknowledged
Global Benchmarking: It must deliver quality products to targeted market with the focus to overcome problematic skin combination rather than age defiance with their lower price ranges.
Noode focus is to produce quality products to meet the needs and wants of Generation me packed in innovative and fun approach.
7.3. Core Strategies: Segmentation, Targeting and Positioning
Target market
Psychographics
- The target market prefers products made from halal ingredients.
- Women requires products with basic properties of purification, nourishment, protection, treatment and ageing prevention
Demographics
- Age: The potential customers of Noode would be of age group of 15 – 29 years.
- Income: As for the income levels, Noode targets the middle class to the upper class.
Competitive Target .
The main competitors to Noode are AVON, Nevea, Body shop etc. In order to successfully compete with these market rivals Noode is mainly concentrating on providing products at lower prices and advertising aggressively which will play a vital role in attracting the targeted customers.
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Competitive or Differential Advantage
The major competitive advantage is that it comes with an idea of “Generation me” since younger generation is more concern about their skin and young generation is moving to Dubai in large as this is one of the biggest business bay on world’s map.
Other allied distinctive advantages are as below:
- It is financial sound organization
- Coming up with diversified range of products
- The company is fully equipped with latest technology
- Providing quality products at affordable price
- Funky packaging
- It enjoys public trust and confidence in US market
- Strong and successful multi national workforce providing global outlook.
Positioning:
As Noode has been the most selling brand in US for last 5 years applauded by younger generation. Since Dubai is a new market for this product the perceptual map below illustrates the positioning of Noode in Dubai market against competitors.
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Diagram 4 – Positioning of Noode
8.0 MARKETING MIX DECISIONS
8.1. Product: Noode is planning for a launch their twelve-skin care product line for young consumers of UAE between the age of 15 to 29, to tackle the skin problems and help prevent early signs of aging.
8.2. Price: The launch price for these products will be ranging from AED 60 to AED 90 depending on the type of product.
The price demanded is 9% higher than the US market keeping in mind the import and duty charges. Noode will also tie up with various departmental stores similar to strategy adopted by the founder in United States to encourage availability of its products to buyers at convenient locations.
8.3 Place: Noode initially plans to have products displayed at various departmental stores and pharmacies like Carrefour, Spinney, Lulu hypermarket etc as well as in famous beauty saloons like VLCC, Nail bar, Cleopatra spa and beauty outlets like Paris Gallery in Dubai, U.A.E.
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Noode also plans to display the products at leading pharmacies. As these outlets and location are in ideal spots which will help target potential customers for skin care product.
8.4.Promotion :
In US Noode has promoted their products keeping the cost minimal since it has been a key tactic for the founder, and has chose to use catalogue inserts, postcard, in store support combined with a heavy sampling program, and store events like the teen appreciation day. However in UAE We would run promotions to target the following:
- The affluent customers who are visiting Dubai.
- The residents of Dubai
- The affluent customers of competitors
The following promotional activities will be followed
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Table 5 – Promotional Strategies
8.5. People: Noode will have a team of dedicated and qualified beauty experts who are ready to serve with a positive attitude and willing to help customers get the right product for their skin problem.
These experts would be young dynamic between 25-35 years, Presentable, Qualified and with Pleasing personality.
8.6. Processes: The existing delivery channels will continue because the processes are tightly linked with one another to ensure synchronization. If conditions change, synchronization realigns the multiple priorities and reallocates the resources. The management works as a controlling system over the processes.
8.7.Physical Evidence: Physical evidence is basically concerned with the image of the company and its products as perceived by the customer. We will try to create its image by a planned promotion not leaving the strategy adopted in US..
9. BUDGETING
The various promotional activities to be conducted for the launch of Noode skin care products are detailed in the promotion section of the Marketing Mix. We will break up the marketing budget in
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10. ORGANISATION, IMPLEMENTATION & CONTROL
Organisation: The implementation of this marketing plan involves huge costs and it needs complete support from the management. The management is fully aware of the marketing efforts for which it has appointed a new Head of Marketing who will be supported by three marketing managers. The head of marketing will implement plans and report directly to the MD.
The marketing managers will be responsible for the marketing activities in their own sectors and will have marketing officers reporting to them. Budgets will be allocated to the managers by the Head of Marketing and their performance will be evaluated every month.
Implementation: The areas of implementation and the timeline of this marketing plan is illustrated in the Appendix I & II.
Controls: Controls is the most important part of a successful plan. Even successful plans fail if it is not properly controlled. The main responsibility of controlling will be upon the head of marketing department. He will take the following steps to see the successful implementation
- Assignment of targets.
- Monthly break-up of Budget
- Monthly meeting with manager on the progress
- Reporting to the Managing Director on a monthly basis
11.0 CONCLUSION
Noode Skin care line products have been a success in US market and have made their mark in the US market with their quality products, low pricing and innovative packing. The above report is created after analyzing the external internal market of UAE and identifying the strengths and weaknesses of the products, this will help Noode classify the potential of launching the product in strong market of UAE. The product range will target its potent ional customers of age range between 15 to 29 via advertising aggressively to be prominent in the targeted market. Noode plans to display its products in UAE at convenient locations keeping their prices minimal.
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Bibliography
Books
- David Jobber, “Principles and Practice of Marketing”, 5th edition, McGraw –Hill Companies, London 2007.
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Tony Lindley, “Marketing Management, Bradford Study Guide”, Dubai, U.A.E. 2007 Internet Sites
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- Introduction &Executive summary
(N.A.2008) [Accessed 25/04/2008]
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1.html
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(N.A 2008) [Accessed 05/05/2008]
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Marketing Mix :
Magazines & Newspapers
New York Times
Tony & Tina cosmetics and lucky magazine
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Appendix I
Implementation Timeline for Noode Marketing Plan (Publications & Hoardings)
Publication Campaigns in UAE
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Appendix II
Implementation Timeline for Noode Marketing Plan (Event & Newspapers)
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AppendixII - Continued
Implementation Timeline for Noode Marketing Plan (Event & Newspapers)
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Appendix II - Continued
Implementation Timeline for Noode Marketing Plan (Event & Newspapers)
Diary of Noode March 2009
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