Redwin Strategic Marketing Plan

Redwin

Strategic Marketing Plan

Table of Contents

Title Page 1

Introduction 3

Situation Analysis 4

Market Analysis 5

Customer Analysis 8

Competitor Analysis 15

Internal Analysis 22

S.W.O.T Analysis 28

Strategic Position 31

Vision and Mission 32

Marketing Mix Strategies 33

References 35

Introduction

Redwin is a small Australian based company with a relatively broad product range of body and skincare brands. Redwin also seeks to expand their product range overseas and within other product categories. Their products are Australian made and owned, are relatively priced, environmentally friendly and are also created from natural ingredients. Their current products include a range of sorbolene lotions, body washes, hand washes, moisturising bars, deodorants, shampoos, facial cleansers and creams, and other assorted creams. Redwin are currently positioned within the hand and body and cleanser and moisturiser market.

The purpose of this report is to conduct a series of analyses in order to work out the strengths, weaknesses, opportunities and threats that directly affect Redwin and its overall business operations. This was done by looking at the environments, markets, customers, competitors and internal workings.

Situation Analysis

Market Analysis

Skin Care Market Overall Analysis

Skin care’s constant value sales are expected to grow at a CAGR (Compound annual growth rate) of 3% over the forecast period of 2006 to 2011 to reach A$ 1.41 billion (Refer to table 1).

Table 1

% constant value growth 2006-11 CAGR 2006/11 TOTAL

Facial care 3.2 16.9

Body care 2.2 11.4

Hand care 0.8 4.1

Skin care 3 16

(http://www.euromonitor.com/Cosmetics_And_Toiletries_in_Australia).

Firstly we examined the value sales of cosmetics and toiletries by sector or type for the years 2001 to 2006. Below is a table that represents this data.

A$ million 2001 2002 2003 2004 2005 2006

Baby care 36.6 37.8 39.1 40.2 41.4 44

Bath and shower products 287.8 310.1 320.6 327 333.5 339.7

Deodorants 236.7 248.5 257.8 266.2 273.5 280.9

Hair care 651.7 686.9 710.5 734.8 758.1 765.3

Colour cosmetics 661 682.7 703 722.5 741.3 765.8

Men's grooming products 302.9 322.6 343.5 362.2 380.1 400.8

Oral hygiene 418.5 447.7 479 496.2 511.2 525.5

Fragrances 498.7 508.4 522.7 538.1 554.7 575.4

Skin care 931.3 971.8 1,029.40 1,077.60 1,138.10 1,214.00

Depilatories 38.5 42.8 48.2 52.6 56.7 60.4

Sun care 84.1 90.7 95.5 101 112.9 123

Premium cosmetics 1,092.00 1,138.30 1,192.30 1,246.10 1,314.90 1,385.90

Cosmetics and toiletries 4,026.90 4,218.10 4,403.70 4,560.00 4,731.00 4,912.10

(Euromonitor 2007)

The biggest contributor to sales measured in value, are premium cosmetics. However, Redwin does not fall into the category of premium brands. The second biggest contributor would be skin care. The trend shows that the average sales by value is increasing exponentially, i.e. increasing from years 2001 to 2006. This clearly shows that the most profitable scope is skin