New Product Technology

Part A 1. 0 Company Background Softlan is a product under Colgate-Palmolive Company. The small soap and candle business that William Colgate began in New York City early in the 19th century is now, more than 200 years later. It is a truly global company serving hundreds of millions of consumers worldwide. Colgate is a global brands sold in over 200 countries; Colgate, Mennen, Palmolive, Ajax, Softsoap, and Hill’s Pet Nutrition are among the world’s most recognizable household names, trusted and relied upon by consumers everywhere (Colgate Word of Care, 2008). Based on the research, the company’s business strategy focuses on five core businesses: oral care, personal care, household surface care, fabric care, and pet nutrition. In the household and fabric care, Colgate-Palmolive has offered the entire household cleanser product such as Toothpaste, Softlan, and body shampoo and so on. [pic] [pic] 2. 0 Product Attribute Softlan is good quality household products that provide to the family. Softlan is to help make their families clothes feel and smell their best. According to Judy Strauss book, with quality most customers know â€Å"you get what you pay for†. That is higher and consistent quality generally means higher prices, thus maintaining the value proposition (Judy Strauss, Adel, Raymond, 2005). Softlan is adapting a premium price position to comparing with other brand Softener such as Good maid, Downy, Petals and so on but the customer still will purchase it because of the Softlan quality. The offer benefits of Colgate-Palmolive Softlan are as below: ? Static free ? More comfortable to wear Makes ironing easier ? Gives your family’s clothes an irresistible softness ? Leaves a pleasant fragrance on clothes ? Long lasting fragrance for up to 16 days (Colgate World of Care, 2008) These all the benefit of Colgate-Palmolive Softlan is offer based from customer need and wants which is be able to satisfy the users. [pic][pic] [pic] [pic] 3. 0 Branding Branding is very important to the Colgate-Palmolive Softlan to gain the compet itive advantage from the competitors. A brand is a promise to customers. Delivering on this promise builds trust, lower risk, and help customers by reducing the stress of making product switching decisions. Example like when the customer want to purchase Softlan in the hypermarket but there are many brands so the customer will choosing the brand that they will trust. The selling price of the Softlan Ultra is higher than another Softlan price but the customer still will choosing Softlan Ultra product which is because under the brand name of Colgate-Palmolive and it is also an old brand in the fabric softener product, therefore customer will more trust to the quality of the Softlan Ultra. Based on the research, Colgate-Palmolive Softlan is successful to build the brand name in the customer mind in Malaysia and Hong Kong but there are a lot of new brand was market in the product so Colgate-Palmolive still need to improve and maintain the sales of Softlan in the market with another way. Based on the research information has show that in fabric softeners product, where Colgate is No. 1 in Hong Kong and Malaysia, new sizes and fragrances are adding incremental Market share (Colgate Strategy, 2006). 4. 0 Competitor Analysis Softlan being one of the top fabric softener in Malaysia would need to compete with another competitor in Malaysia market. There are few competitor brands in the market which are Downy, Petals, good maid and so on. All of this fabric softener will offer the similar benefit of softener to customer. Softlan would be competing with this entire brand by using different media, offer differentiation product and produce what the consumer wants in the market. Softlan Company is very smart; it is entered into the hot weather country market which no other softener has entered. Having the Softlan is being able to help the user solve their clothing smelly problem. The Softlan is 4x concentrated with a rich formula that deeply penetrates fabrics and with long lasting fragrance for up to 16 days. |Category |Brands |Chief Competitors | |Fabric Softener |Suavitel, Soupline |Procter & Gamble | [pic][pic][pic] 5. 0 Target Market Softlan target market is large. It is targeting to have family people, single working people and student. Nowadays, every people were busy to work especially in Town so every people also want fast and smell best. Especially working people and student, Softlan can help them to ironing their formal with easies and fast. Furthermore, it also can help them to leaves a pleasant fragrance on clothes. Besides, some big families will not enough space to dry their clothes so all the clothes will hang it together and Softlan will help them to leaves a pleasant fragrance on the clothes. . 0 Positioning Positioning is an important tool those use to reach the user effectively. Softlan has positioning their product with the word â€Å"Soft as a mother’s love† in the website through their target customers (Colgate Word of Care, 2008). Which mean that Softlan communicate with the customer after using the Softlan fabric softener to wash the clothes, when wearing will feel soft and comfortable like our mother love. Sof tlan fabric softener is using benefits positioning to support a distinct perception in the consumer mind. In additional, Colgate-Palmolive is providing different type and flavor of fabric softener to the customers. It is to satisfy different customer with different taste such as Softlan ultra is using four times (4x) more softening and long lasting fragrance in 16 days; Softlan relaxing is the softener that the smell can release the stress of the consumer and so on. Softlan has positioning it product in the customer mind by using special flavor which is Relaxing variant with Lavender & Ylang- Ylang essentials oils or the Energizing variant with Bergatnot and Jasmine essentials oil. After using the Softlan, it will help the customer feel relax and wear the clothes more comfortable. Softlan has using marketing strategy of advertise in website, in television in 2007, magazines and so on. Those are few marketing strategy that has been using by Softlan to strengthen their positioning in Malaysia in the hypermarket. In the long run, Softlan has succeeded to build Softlan branding by using the strategies above. The positioning strategies will help Softlan to gain the largest market share in the market. 7. 0 Pricing Strategy Softlan position itself as a premium price of product as mention above. Although it’s pricing is always higher than another brand such as downy. The product is almost same with Softlan but in pricing downy is always cheaper than Softlan. Besides, downy sometime also will sell in offer price within add 20 liter. According to the market research, Softlan price is selling in higher price than another brand it is because it doesn’t want to play price war in the market with the competitor it will lose control in product pricing. Softlan is selling like normal price to their customer nevertheless the customer still will purchase it; it is because the customer trusts to the Softlan quality and brand name. 8. 0 Consumer Behavior Colgate-Palmolive Company was considered about the consumer situation and start to understanding the consumer behavior. Based from the vision of Colgate-Palmolive Company is want to become the best among the consumer product by understanding the consumers and consumer expectation better and by continually innovating and improving their products, services and processes (Colgate-Palmolive Company, 2006). Therefore, Colgate-Palmolive company has successfully created several flavor of Softlan to attract more customer and student when start to market it. Until today, Softlan still strong on its position by providing different flavor, easy to use and bring a lot of benefit to the users. This reason will bring Softlan continually having a big market in fabric softener market. In the other hand, Colgate-Palmolive company also has consider that nowadays people are facing stress problem with the work or family therefore there was come out the new Softlan that the smell can be relax to the people and feel comfortable. Besides that, using Softlan also can help the users ironing their clothes with easy and fast so can save time of the consumers. Softlan also know that nowadays the consumer was also because of the outlook, design of the bottle to buy it. Softlan understand that especially most of the younger people look for the bottle design. Besides, nowadays the consumer also likes to purchase small bottle Softlan it is because it is more portable and easy to keep. Thus, Softlan was produce the design of small bottle in the market to satisfied the consumers. Besides, the company also has using a slogan to promote the Softlan which is â€Å"Soft as a mother love†, it is easy and effectiveness way to remember by all the Malaysia customers. 9. 0 Communication tools Softlan always having advertising and promoting in hypermarket or media. This is a useful strategy that applied by Softlan. Based on research, it has shown that 44% of supermarket shopper notice messages delivered and 34% are influenced by in sore media in making brand purchase decisions (Super Guru Home, 2005). That is why that Softlan always has promoting their brand by using different in-store media to the customer. Besides, Cleaning Agent-Laundry ranked the third fastest growing category in the first half of 2006 due to an increase in ad spend by Softlan on Television or another media (Appendix 2). It is the effective way to help the Softlan brand name know-well in all hypermarket of Malaysia. Part B 10. 0 Method of Advertising A creative message strategy is one of the important factors that could determine the success of the advertisement. Besides that, the company use advertising to create awareness to the customers which is to attract more people knows about the brand name. Presently, Softlan is adapting behavioral path to make consumers tell other people about the information of product by increase consumer purchase and continually purchasing which is almost similar like â€Å"Word of Mouth† strategies it is can expand the information to everywhere. Softlan also has using cognition path which is to send the message to users how the product can solve the consumer problem. Based on the market research, Softlan has using few different strategies: ? A premium price ? Arrange the Softlan product in the middle space of the rack ? Innovation packaging ? Product innovative Based on the proposed concept, there are needs to using three media advertisement in the hypermarket to engage the consumers interesting, help Softlan to build brand and to increase the sales of the product. There three advertising are floorstoppers in hypermarket entrance Aisle, Event at middle and trolley sticker. From this three advertising and promotion campaign will help Softlan to increase their market share and brand name among the competitor in the market. 11. 0 Floor stoppers in hypermarket Aisle [pic] [pic] Exhibit 2. 0 Direction Floor stopper Floor stoppers in oversea is very famous advertising strategies in the hypermarket or everywhere of the street. Softlan is using floor stoppers to create awareness of the consumer in the hypermarket Aisle. The error floor stoppers is placed entrance on the floor of the product aisle. When a consumer walk pass by the aisle, all the product will arrange on the shelf in one row which will very hard to attract people to saw the product and purchase it. The product would not be to attract the customer to walk close to the product and look at it. If the window shopping customer will not walk through the product aisle it because they just want to walk only but if they saw Softlan floor stoppers on the floor, it will attract them to walk close to saw the product and maybe will attract them to purchase it. At first, the direction error with some Softlan message of floor stopper will put on the entrance floor of the aisle which is to attract the customer feel curious and walk through the aisle with follow the error direction. After that, the customer will saw the product floor stopper which is directly in front of the product it would be attract the consumer to find the product easily or attract more the new customer to know the Softlan product. [pic] [pic] [pic] [pic] Exhibit 3. 0 product floor stopper Furthermore, creative messages will be used to catch consumer attention and look at the product. In the floor stopper, the promotion message and picture is being used it which is tell the customer that saving the money if purchase the latest Softlan product which is ultra Softlan and also will using product picture in the 3D floors stopper to be more appeal to attract attention of customer. In using floors stopper would be an effective advertising in the market. It is because normally when the customer decides to buy they just will walk near the product if no they will just walk through the aisle only and cannot saw the product with easily. Therefore the benefit of floors stopper is when consumer walks near to the Softlan floors stopper they will consider to purchase the product that receiving by the 3D product picture and message on the aisle floor. It is because normally on the shelf will market a lot of similar product but different brand and it will make the customer confuse and hard to find the product. Based on the book, floor advertisement at around the product shelf can help Softlan to increase products sales by much as 25% and attract more new customer to try the product (Rosenbloom, 2004). Floors stoppers advertisement can effective to build branding in customer mind. On the other hand, floor stopper in hypermarket aisle also can be as an extended shelf space of the product and dominance of the aisle for the advertisement of Softlan product. The pictures of Softlan floors stopper refer to exhibit 3. 0. 12. 0 Event at middle of hypermarket By using Softlan event is an effective media nowadays trends. The product event can be like purchase the product up to ten ringgit will get chance to win the voucher or selling the product by using promotion price which is mean selling the Softlan product in the lower price and introduce the latest Softlan products. Softlan can choose to have this event it is because the event can attract more customer attention to the product and know the product features. To having this event will be able to attract more the potentials customer, it is because the customer will think that the price will cheaper than normal day so they will go to join the event to get the free gift or purchasing the Softlan product with promotional price. With having this event Softlan Company can be face to face provide the Softlan information to customers. The benefit s of Softlan having an event is customer data can be collect for analysis and can understand more customer behavior in the hypermarket. Thus, some cross-selling will be implementing in the events. It is also can build customer relationship to increase the customer services of Softlan and also can understand the trend of market. From the event, Softlan Company brand name will always keep in customer mind and can increase the number of new customer to purchasing Softlan products. Besides that based on the event can direct communicate with the customer and know what they wants. 3. 0 Trolley Sticker Trolley sticker is meant that the Softlan product promotion or information sticker can be stick on hypermarket trolley. Softlan can use the sticker advertisement to attract every walk in customer. It is an effective way and easy to advertise Softlan product through the sticker to create customer brand awareness. The advertisement can be saw by every customer in the hypermarket whe n they using the trolley. When the customer saw the promotion message or picture them will feel curious and will finding the Softlan product place to see it. The benefit of the Softlan trolley sticker is can reduce the advertising cost and also can expand the advertisement space of the products. It can be create awareness to all customers who are shopping in Carrefour. 14. 0 Conclusion As a conclusion, all of the media strategies can be effective advertising tools in the market. Softlan can be using this three media advertising to increase the number of customer, increase the sales, and create the brand awareness for the customer. It is an effective tools using by Softlan to compete among the fabric softener competitors. References Colgate-Palmolive, 2008, â€Å"Colgate world of care†, Accessed by 17/8/08, available on: http://www. colgate. com. my/app/Colgate/MY/HouseholdCare/ProductRecommender/FabricSoftener/PDPs. cvsp? product=SoftlanUltra -Supermarket Guru, 2007, â€Å"Spontaneous Supermarket Sales†, Accessed by 19/8/08, available on: http://archive. supermarketguru. com/page. cfm/15585 -Reuben Mark,2008, â€Å"Chairman of the Board† Accessed by 30/8/08, available on: http://www. colgate. com. my/app/Colgate/MY/Corp/ChairmansMessage. cvsp -Colgat-Palmolive, 2008, â€Å"The New York Times†, Accessed by 3/9/08, available n: http://topics. nytimes. com/top/news/business/companies/colgate_palmolive_company/index. html? excamp=GGBUcolgate-palmolivecompany&WT. srch=1&WT. mc_ev=click&WT. mc_id=BI-S-E-GG-NA-CT-colgate-palmolive_company -Bina Thompson, 2008, â€Å"Earning News†, Accessed by 9/9/08, available on: http://investor. colgate. com/print_release. cfm? 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Appendix 1 In-Store Media Can Spur Spontaneous Supermarket Sales August 9, 2005 A new study reveals that 44% of supermarket shoppers notice messages delivered by in-store media, and 34% are influenced by in-store media in making brand purchase decisions. One key finding of the study, conducted by Mediaedge:cia, was that a strong correlation exists between shoppers noticing an in-store ad or promo tion, and that prompting an impulse purchase. However, not all forms of in-store media are created equal, nor is the effectiveness of each to different segments of shoppers. For instance, end-aisle displays and store flyers are the most noticed form of in-store advertising overall, while shopping cart ads and in-store TV ads are largely ignored by today's â€Å"on-the-go† shoppers. And, despite the rhetoric surrounding our time-challenged society, 51% of supermarket shoppers still move through every aisle of the store. A shopper's age can hold the key as to how responsive that person may be to various forms of in-store media: †¢ Shoppers age 55-64 are most influenced by product demos †¢ Shoppers 45-54 are 66% more likely to respond to flyers †¢ Shoppers 35-44 respond favorably across many in-store media including product packaging, check-out line advertising and ads outside the store (outside the entrance and in the parking lot) †¢ Shoppers 25-44 are most driven to spontaneous, unplanned sales by shelf signs In terms of gender targeting, females remain the primary supermarket shopper, and the study reveals that in-store ads are generally effective in communication with female consumers. They often hold the key to triggering spontaneous purchases – particularly if they are tied into a deal. The exception is poster ads hanging from the ceiling, which are largely ignored by female grocery shoppers. Many of those women are heads of households who bring their kids along with them on shopping excursions. It should come as no surprise, then that among them, 61% claim their children influence their brand decisions, underscoring the need for in-store communications to this age group as well. Over the past decade, the term â€Å"in-store media† has taken on a whole new meaning. Once consisting of simple signage by retailers hoping to promote specials, today, in-store media includes various incarnations, including end-aisle displays, floor signage, kiosks, interactive flat panels, and in-store audio and video transmissions. In-store media has a huge advantage over traditional media in