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Proposal for reshaping the shampoo brand “Venus”ContentsExecutive Summary1Introduction1Findings and Analysis21.Strengths22. Weaknesses23.Opportunities24.Threats35. Product Strategy36. Advertising plan37. Sales Strategy48. Cost Breakdown (Unit of Measurement: RMB yuan)49. Benefits510. Risks and Management Plans5Conclusion66 / 8Executive SummaryDue to the reputation of the product has declined,the market share of brand “Venus” is continuing to decline. As a result, Venus Shampoo Company is facing a serious crisis. The company has a choice of two marketing programsprice cuts or reshape the brand. After the analysis of the market situation and the SWOT analysis of “Venus” Shampoo Company, we decide to adopt the marketing plan of reshaping the brand.“Venus” Shampoo Company will implement the plan through a series of ads and product update strategy so as to reshape the brand. The marketing plan will cost 2,000,000 yuan. Through the implementation of this plan, Venus will once again become one of the most well-known shampoo brands. Besides, the sales volume of “Venus” shampoo is expected to rise by 25%, and the companys profit will rise by 15%.Introduction The brand of Venus is born in 1990, which aimed at those female consumers aged between 15 and 30-year-old. It gave people the impression of fashion, romantic. Shortly after the company was founded, it experienced a rapid expansion of market share. As a result, Venus”, which was a strong regional brand of Guangdong Province at first, became into one of the nationwide major brands. It had a market share of 4% soon. And more than a decade, Venus kept on maintained the 4% Market share. Over the years, the basis product of Venus and the packaging have made several changes, but the appearance of the product have never been changed. Furthermore, the advertisement of “Venus”Venus: a romantic product comes from Europe also has never been changed. In 2006, the market share of “Venus started to decline slowly. Until 2008, two years after the decline happened, the “Venus” Shampoo Company began to pay attention to this problem seriously. It is clear that Venus Shampoo Company is facing the problem of brand aging. Due to internal and external reasons, the brand meets a series of problem in market competition such as the decline in reputation, sales, as well as market share, is called brand aging. Brand aging causes enormous harm to brand owner, making the brand owners lost part of its regular customers. And this trend, once formed, it would be difficult to reverse, as if it enters a situation as grave”, said David Aaker, which is characterized as: everyone knows this brand, namely it is a famous brand, but people do not remember it when make purchase decision. The best solution to such a problem is to reshape the brand. Through a series of advertising and product update, we can reshape the Venus as a high-end, fashion, tasteful shampoo brand.Findings and Analysis1. Strengths We think that the strengths are crucial in reshaping the brand. Therefore we should take advantages of the existing strengths thoroughly so as to save the brand and rescue the “Venus” Shampoo Company. These strengths can be illustrated in such factors as: The products of this brand are sold all over the country, and it is still a nationwide brand which has a market share of nearly 4%. The brand has a mysterious and romantic European style, which gives people the impression of fashion, romantic and tasteful. The brand has a long history; as a result, it has a great number of loyal customers. The company has stable channels of advertising and an experienced advertising team. The company has an experienced R & D team. Furthermore, it is developing a kind of new shampoo now.2. WeaknessesHowever, we think that the weaknesses are vital too in reshaping the brand. Therefore we should make a clear understanding of the existing weaknesses so as to make up for these deficiencies. These weaknesses can be illustrated in such factors as: The kinds of products which the “Venus” Shampoo Company provide for consumers are very few. The brand image of “Venus” is outdated, and its attractiveness has gone down. Due to the poor internal communication of the “Venus” Shampoo Company , it is exceedingly difficult to reach consensus between different departments. The company has only one sales model, which can not suit to the changes in consumer buying patterns. The companys staffs are lack of awareness of the trend of consumption and are not sensitive to changes in the market.3. OpportunitiesOpportunities are external factors which are beneficial to the implement of our plan. It is felt that there are good opportunities for us to reshape the “Venus” shampoo brand. These can be illustrated in the following factors: Throughout the shampoo market, customer buying patterns are very different, and we can make use of this chaotic situation to reshape the brand. All other products on the market are lack of winning strategy, namely there is not any brand which has formed the monopoly position on the market yet. Due to the decline in brand loyalty of customers, one single brand can not occupy the whole market.4. ThreatsThreats are external factors which are harmful to the implement of our plan. It is felt that there are some threats for us to reshape the “Venus” shampoo brand. These can be illustrated in the following factors: The retailers do not support the Venus brand as before. Compared with the past, many merchants have lowered the Venus” shampoos share of shelf space. The barriers of market entrance have reduced. As a result, many new products have emerged, and they all trying to grab market share.5. Product StrategyFirst of all, let us analyze and position the products of “Venus” Shampoo Company according to the BCG matrix. It is clear that the Venus Shampoo Companys existing product belongs to the cash-cow business. Its growth prospect is limited, but high market share makes it the companys main source of cash income in short term. Therefore, such a business should not be given up. The new product that the “Venus” Shampoo Company is developing maybe belongs to the star business. However, through market research, we become aware of that the green product is the symbol of high-quality in todays market. As a result, we believe that, based on current consumption trends, the “Venus” Shampoo Company should develop a kind of green product immediately, and develop it into a kind of star business. Based on the above analysis, we have formulated the following product strategy. Define the existing product of the “Venus Shampoo Company as Classic Serial, so as to prevent the loss of loyal customers. Bring the new kind of product which the R & D team is developing now into the market as soon as possible, and define it as “Fashion Serial”. Immediately start to develop a kind of green product, and define it as Green Serial.6. Advertising planIn the process of reshaping the brand, advertising plays an important role. We believe that the Venus Shampoo Company needs to implement a nationwide advertising campaign so that more and more consumers will be aware of such a shampoo brand and its products. Based on the above analysis, we have formulated the following advertising plan. Choose some of the mass media as advertising media, e.g. television advertising, the magazine of life (especially popular female magazine), Fashion TV programs, outdoor billboards, bus body advertisement and so on. Convene a number of news media so as to hold a press conference of new products.7. Sales StrategyThrough market research, we know that, the marketing channels of Venus shampoo have always been the supermarkets and retail stores. However, in todays shampoo market, consumer buying patterns are extremely different. As a result, the single sales model of the “Venus” Shampoo Company obviously is unable to suit for the changes of consumers buying pattern. Moreover, according to the feedback of sales force, we are aware of that the retailers do not support the Venus brand as well as before. Compared with the past, many merchants have lowered the Venus” shampoos share of shelf space. To solve these problems, we have formulated the following sales strategy. Provide more profits for retailers to improve the relationships. So that we can win their support to the “Venus” brand and its products. Explore and develop more and more marketing channels, such as set up some special counters in high-end salons, high-end shopping centers and drug stores. Moreover, we can build an online trading platform for “Venus”. Provide customers with high quality after-sales service. High-quality after-sales service is a symbol of high-end brands, as well as the best promotion. We should make use of some means to improve our after-sales service. To name a few, we should open a 24-hours service hotline for customers and make sure that there is actually someone who will answer the consumers complaints or questions. Implement the customer relationship management (CRM). Customer relationship management (CRM) is about understanding the nature of the exchange between customer and supplier and managing it appropriately. The exchange contains monetary consideration between supplier and customer, but also communication. The challenge to all supplier organizations is to optimize communication between parties to ensure profitable long-term relationships. Use a variety of promotional means8. Cost Breakdown (Unit of Measurement: RMB yuan) According to the estimation, the plan will cost 2,000,000 yuan which include R & D costs, advertising costs, and operating expenses and so on. Expenses for specific items are listed as follows: R&D costs: The R & D of new products will cost 400,000 yuan.Advertising costs: The cost of advertising including television advertising expenses, magazine advertising expenses, outdoor billboards expenses and bus body advertising expenses would reach 1,200,000 yuan. Television advertising expenses 600,000 Magazine advertising expenses 400,000 Outdoor billboards expenses 100,000 Bus body advertising expenses 100,000Operating expenses: The cost of carrying out the plan would be 100,000 yuan which include management costs, finance costs and entertainment costs.Promotion costs: The cost of promotion would be 300,000 yuan.9. BenefitsSuch a brand-reshaping plan will effectively make use of the “Venus” Shampoo Companys existing resources, which include the high-end brand image of “Venus”, the existing product, the new product that the R&D team is developing now, the existing marketing channels, and so on. As a result, the implementation of this plan will not bring the company too much financial pressure. Furthermore, the plan takes full account of the companys problems and gives recommendations for improvements. We believe that through the implementation of the plan, the Venus brand can be saved, and it will once again become one of the most well-known shampoo brands. Besides, the sales of “Venus” shampoo are expected to rise by 25%, and the companys profit will rise by 15%.10. Risks and Management PlansHowever, we should also take account of the risks we might confront when we put the plan into practice. For example, some of the companys employees may resist the implementation of the plan; the staffs who will operate the details may not understand the practical situation so that the plan will be carried out in difficulties; due to the poor internal communication of the company, it may be exceedingly difficult to reach consensus between different departments.Although it is impossible to eradicate all the risk at once, it
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