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International Marketing Mysore Sandal in Singapore Final ppt

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saurabh natu

on 22 February 2012

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Transcript of International Marketing Mysore Sandal in Singapore Final ppt

Conclusion Thank you for your attention! Cultural Analysis Influence of Cultural & Economic Factors in Marketing Mix
Mysore Sandal Soap Singapore
A island country: 63 islands.
It is one of the four Asian tigers,
World's fourth-leading financial centre,
World's second-biggest casino gambling market,
World's third-largest oil refining centre.
The World Bank notes Singapore as the easiest place in the world to do business
Historical setting:

Centre for the India-China trade in Southeast Asia
Busiest port the world over with more than 600 shipping lines
Geographical Setting:

Control on elements of brand communication & distribution
Tropical Climatic condition – Similar to South India
Social Institutions:

Ranks high on Hofstede’s Collectivism index
Stable Govt. – minimize risk (strict policies against bribery)
Religion and Aesthetics:

Elements of similarity with India
Low effort to education consumers about sandal wood
Style of Living:

Affluent style of living, with segments loosely divided on lines of origin/ religion

4 Official Languages: English, Chinese, Malay, and Tamil
Communication in Tamil can also be used to target the “Indian-origin” segment of the population
(cc) photo by theaucitron on Flickr Economic Analysis
Population The urbanization ratio of Singapore is 100%
Majority of the population (77%) is within the age group 15-64 years (Working age group) and Male to female sex ratio is 0.95
Majority of the Singapore are familiar with sandal wood (low reluctance)
Economic Activity
Stable prices, low risk, low tax rates (14.2% of GDP)
Developed market-flexibility to potentially charge a premium for Mysore Sandal Soap
Science &
Developmental support for semiconductors, communications, displays, and data storage industries

2.3% of Singapore GDP is spent in R&D
Channels of Distribution
Singapore is a highly developed market both from a customer perspective and a channel perspective (organized retail sector and 100% urbanization)
Organized retail is the primary contact points for the consumer
Freight companies, wholesalers and retailers perform most of the functionality in the channel
E-commerce sector is currently growing (2% of the overall retail market
Communication mediums:TV, radio, mobile phones, newspapers & internet
Mass media are owned by government in 95% of the cases.
High Internet (99% connectivity) and mobile media penetration (132.6%)
(cc) image by anemoneprojectors on Flickr Promotion Advertising and promotional objectives
Media Mix strategy
Message (Creative for the mediums that you choose)
Advertising Objectives and Strategy Creative Strategy

Landscape Audit
Brand Personality
Consumer and Product Analysis
Competitor Analysis

Media strategy Brand Personality:
Personality: ollectivistic
Identity: Family soap
Core Value: Ethnic, Cultural value based
TG SEC A, B Families

Hence Housewives who are the Purchase Decision makers Media Habits Internet Savvyness is more

Top of the Line Communication is effective Consumption Habits Generally buy soap on 1st of month
Bigger packs preferred due to family cohesiveness
TG upgraded to Shower Gels Touchpoints Morning newspapers
Phone messages
Family outing spots
Internet - Youtube
Social Networking Category need: Differentiated (because Mysore sandal does not provide Germicidal properties standard for a soap category)

User: User is the Hero (because the Soap does not have any achieving traits. It is the User who has to be projected with values like ‘connected with heritage’, ‘responsible family man’, ‘niche class person who uses ethnic products’)

Purchase Motivation: Positive (transformational)-sensory gratification (nice smell),
Intellectual stimulation (medicinal benefits of natural sandalwood) ,
Social approval (ethnic, niche brand)
XYZ Macromodel Rossiter Percy Grid Analysis Category:
Low Involvement,
Informational (low risk, germs, odour relief purchases)

Mysore sandal:
Low Involvement,
Transformational Product (low risk, reward purchase – smell, ethnic class)
Thus we need to make an ad that can form an emotional connect between the brand and the experience The Creative The Existing Ads The new Creative A boy asks his mother, where their family has come from Grandmother says, her ancestors came from the ancient land of India India, where our great Lord Buddha was born
Where he gave us his great teachings Our Family Worships Him with Sandalwood insence sticks Grandson: what is sandalwood?

Grandmother: Unique rare wood with divine smell and medicinal properties which nourishes skin Hence our Family uses Mysore Sandal Soap which is the only soap in world made from pure Sandalwood oil Creative Brief Roots of Family
Culture and Heritage
Worship and Religion
Growth and Values
Medicinal properties of Sandalwood
Mysore Sandal soap - a unique in the World
Family happiness and prosperity The TG as selected Start with net-savvy people Prime-time soap operas, family time
Typically 8-10 pm dinner slots and 12-2 pm lunch slots High Frequency initially for ensuring Top of mind recall
Reduce frequency after 3 weeks and focus on promotions TV: 40%, Internet: 30%, Print: 20%, Below the line promotion: 10% of the total Media budget Costs of Promotion Triadic Analysis Marketing Objectives Targeting & Positioning Segmentation parameters

Income, Men / Women / Kids / Family
Core Target segment:

Upper middle class families
Annual household income above 70,000 Singapore dollars
Modern in outlook but believes in traditional values
A premium (not luxury) bathing product that cleanses and nourishes the skin naturally
Natural extracts makes the product extremely safe even for children
Sandalwood rejuvenates the skin without any of the harmful side effects of chemical ingredients
Secondary Target:
Aspirational product for the lower middle class families
Competitive Space Not in direct competition with luxury personal care brands
Priced slightly higher than Dove, Lux, Olay but would be in direct competition with them for market share
Other competitors – Herbal/Natural bathing soaps & gels (a significant portion of which are Indian brands!)
Coverage & Penetration Goals Singapore is geographically a small country
Area ~ 710 sq. km
Bangalore area ~ 740 sq km!
Country wide coverage targeted even as early as the Launch phase
Standardization vs. Adaptation Core product attributes and brand positioning to be kept standard across markets
A “natural” bathing product with Sandalwood and other herbal extracts
Deluxe/Premium positioning compared to the mass market

Reasons for Standardization: Mysore Sandal’s unique product attributes are a key element of its value proposition
Altering the core elements would change the fundamental value offered to customers

Adaptation in non-core product elements
Product Form: Bathing soap/Gel
Pack sizes to vary across different markets
Packaging – Pack Design, Texture of material used etc
Additional elements – Moisturizing/ Oil Control
Product Product Platform:
Shower Gel/ Body Wash (Bar Soap’s have a negative growth rate)
Translucent (They are preferred over the opaque body wash)
Gold (with moisturizer)and Classic (with Glycerine)
Functional Features:
Ingredients: 100% pure sandalwood oil
Properties: Relieves inflammation and itching; Anti-aging properties; A soothing and a moisturizing effect; Refreshes dehydrated skin Packaging Component:Weight: 200 ml and 750ml Bottles

Availability: Combo pack of two or three

Design Features: Bottle (ease of use)

Styling: Using the same styling as the soap variant

Brand Name: Same “Mysore Sandal” brand with same font

Quality: The quality will be same as the soap variant

Trademark: The logo, colours and the brand

Labelling: Language Translation

Support Services Component:Legal and Warranty: All the claims made by the product will be addressed and there wont be any exaggeration of the benefits.
Distribution Current scenario 100% urban population in Singapore
Both grocery and non grocery retailers experienced healthy growth in 2011, which is expected to continue
Consumers spent more on luxury items that they cut back on during recession
Internet retailing is increasing in popularity as consumers become more technologically savvy
Customers tend to shop online for non- grocery products.
Modern grocery retailers have extensive reach due to their large number of outlets, and hence consumers see no need to purchase it online
Exporting from India Manufacture in India and export to Singapore
Import-oriented or traditional distribution structure- selling goods at a higher prices to a affluent customers, seeking supply from a limited number of middlemen
Singapore is majorly skewed towards huge organized retail stores(Departmental stores and supermarkets) in shopping malls and complexes
No cash and carry outlets in Singapore
Mixed retailers is an important channel attracting a wide range of consumers reflecting the broad range of products on offer
Channels of Distribution Channels of Distribution Export merchants:
operate like the domestic wholesaler in foreign markets. Purchase goods from KB, ship them to Singapore and take full responsibility for their marketing, may carry competing lines and reaches out to more customers

Export Management Companies(EMC):
works under the parent name, low cost, No commitment of company personal is required
Minimum investment required to get into international market
Essential Needs from Channels of Distribution Obtaining demand
Prospecting and Interest creation
Promoting and pre-purchase
Servicing demand
Bulk breaking
Spatial convenience
Waiting time
Other services
Post Purchase and feedback
Push (availability) and Pull strategy (by advertisements)
Non Sales-Force Options
Internet (Online stores)
Advertising (Promotional Strategy)
Direct Sales-Force – Not Applicable
Indirect Sales-Force
Retailers and Wholesalers
Retail Margin Selling a heavily advertised soap amounts to 40-45% of the sales revenue.
Margins for Stockist 2-6%, distributors 6-10%, transport/freight companies 5-7.5%
On hard soap, soap powders and soap flakes, retail margins ranged from 16-30% of retail price.
Average retail margin was approximately 20% on sales
on toilet soap, the margins earned by grocers and general retailers ranged from 21-36% with an average of 23-25% of retail price
In addition to a basic margin of 25-33% some manufacturers allowed discounts of 7.5-17.5% for bulk purchases or window display and upto 5% for cash settlement
However highest margins are earned on unbranded soaps
Pricing Positioning : Premium Product – Family soap
Target: upper middle class
Competitive based pricing
Price comparison among premium products
Positioned between luxury and mass brands
Pricing strategy : Between Skimming Strategy and pricing strategy
Mysore Sandal Soap : $ 32.00 (250ml)
Entry into the Singapore market would be Mysore Sandal’s first major international entry

A “good” market for launching its first international foray

Attractive market for soaps, especially in the premium segment

Specific competitive advantages that can be leveraged in the market

Geographically small – Easy to control distribution and brand messaging

Percentage of modern retail very high
Further reduces distribution challenges that exist in longer, multi-level channels

English as First Language – Reduced risk of mistranslation of communication
An excellent test ground and home base for entry into neighbouring SE Asian markets
Malaysia, Indonesia, Brunei
Certain degree of similarity in cultures
Significant Market Potential
Larger markets which are more difficult to “get a grip of”
Larger geographical spread
Language barriers to brand communication
Presence of sub cultures within cultures
Highly unorganized retail space

Singapore would provide an ideal launch base to feel and understand the markets
Can help minimize cost of errors

ASEAN Free Trade Agreement
Singapore is a potential manufacturing hub to serve the entire South East Asian Region
Get the balance right between Standardization & Adaptation for the local market
Important to maintain the Core Identity of the brand same across markets
Therefore, any product attributes that consumers consider as an integral element of the core identity also has to be maintained constant across markets
Elements of the Extended Identity can be/should be adapted to the consumer tastes and preferences in the new market
Packet sizes, Form of the product, Packaging design and aesthetics Own the word “Sandal” in the consumer’s mind
Low involvement product category – Peripheral Route Processing
Low MOA (Motivation – Opportunity – Ability)
Strong association with a relevant and desirable attribute/benefit simplifies the consumer decision process
An easy heuristic for consumers to make a choice
Competitors in the Singapore market have developed strong brand associations
Dove strongly associated with “Soft”. Immediate recall of connected imagery
Focus on building a similar brand association in the communication campaigns
Learnings Taking a Long Term View
Resources permitting, it is necessary to take a long term view when entering a new market
Wrong positioning in the Singapore market can impact future entry into surrounding high potential markets
Positioning Mysore Sandal as an economy product in Singapore to gain market share in the short term would severely impact future potential across S.E. Asia
Alignment between the Manufacturing, Distribution & Marketing Strategies
Alignment between the four elements of the marketing mix
Full transcript