Marketing Assignment
Marketing Assignment
Marketing Assignment
1. Executive Summary…..……………………………………………………………………………...5
2. Introdcution……………………………………………………………………….…………………..5
3. Business Vision, Mission…………………………………………………………………………….6
4. External Marketing Audit
4.1 Macro Environment…………………………………………………………………………7
4.2 Micro Environment……..…………………………………………………………….…...10
Page 1 of 30
11. Bibliography……………………………………………………………………………………..…25
12. Appendix……………………………………………………………………………………………26
List of Table
3. SWOT Analysis………………………………………………………………………………………..16
4. Ansoff Matrix……………………………………………………………………………….……….17
5. Promotional Strategies…………………………………………………………………………….22
Diagram
4. Positioning of Emaar……………………………………………………………………………20
Page 2 of 30
1.0 EXECUTIVE SUMMARY
Noode is a range of twelve skin care product line founded by “Seth Ratner who owes his success
to hard work, charm a dash of chutzpah and the incredible hulk. His early lessons of
entrepreneurship arouse Mr. Ratner appetite for business”(N.A. 2008). After his job in a male skin
Care Company named Zirh Skin Nutrition which was later taken over by Shiseido Co. Ltd, this
experience gave him a chance to understand the beauty business and launch his own company
named Noode in 2000. Initially generating revenue by selling his skin care products in leading
stores like Henri Bendel and Bloomingdale's now wishes to continue to add new locations in US as
well as expands internationally. The approach is to develop a marketing plan to launch Noode skin
care range in UAE.
In order to understand the operating environment External and Internal Audit was conducted and
SWOT analysis was performed to identify the major differential advantages Noode is holding as
compared to the weaknesses and use the same to the advantage in the marketing for the launch of
its Skin care line with its attractive brand image in US and pricing strategy.
Marketing Mix has been designed to aid the achievement of overall marketing objective for the
sale of the Noode skin care line via targeting the right people and offering them with the improved
range of products.
Noode will have to carry out the marketing research to launch their product in new market. It also
has to recognize the capabilities and expertise of its existing image and have to develop the same
to make Noode launch and presence felt and more prominent in the UAE market.
Page 3 of 30
2.0 INTRODUCTION
Noode is a skin care line for woman founded by Seth Ratner in 2001, in New York City, offering
range of twelve skin care products clinically tested and approved by dermatologist to produce
products infused to maintain and prevent aging instead of repair. These products are developed by
innovative technology, in attractive packaging to attract the target customers at affordable prices.
The product line was designed specially to meet the need of Generation Me market which is a
combination of Generation X and Generation Y. The founder of Noode Mr. Seth Ratner identified
that this generation was concerned more about “me” hence the entire product line has “me”. In
addition Noode also conducts different skin care workshops and sampling to promote their
products to targeted market and help customer get better understanding for skin protection. Noode
embodies modern beauty setting sight on the market of 15 to 29 year old women. The product has
an appealing market in US also due to their color full packing and funky writings. Currently
operating in US, Noode in expedition to boost the brand awareness internationally and sales
revenue has recently planned to expand and launch their product line in strong market of UAE.
Due to the fact of profit margins being high in this business in U.A.E’s potency in the cosmetics
business is lies on quality products at lower -prices and low import duties. In order to achieve
marketing objective several characteristics were identified to target UAE market.
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
Page 4 of 30
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
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.
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
Page 5 of 30
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
Page 6 of 30
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.
Page 7 of 30
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
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
Page 8 of 30
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
The internal marketing audit provides us an insight into the various activities and overall
performance of Noode. The section includes the following:
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.
Page 9 of 30
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
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
• 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
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
Page 10 of 30
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
Page 11 of 30
Diagram 2 – Product Life cycle
UAE
?
As per the BCG,
Noode has
achieved a
reputation in the
US market where most
of its products can
be positioned as
“cash cows”. The
Page 12 of 30
Diagram 3 – Boston Consulting Grid
Noode in UAE (UAE), Noode in US(US)
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.
Strengths Weaknesses
Page 13 of 30
Threats ST Strategies WT Strategies
•Multinational workforce. • Recruit experienced national products hence would face great
competition
staff to service affluent
•Islamic values
customers by offering
High competition
attractive
salaries and other benefits
Page 14 of 30
MARKETS
Existing New
Existing
Market Penetration New Product Development
• Quality products for Teens • Design products for old age
• Customer focus customers to better serve their skin
Reputation problems.
Design products by adding value
added ingredients which are good
for skin, like vitamins and fruits
New
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
Page 15 of 30
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.
Target market
Psychographics
• The target market prefers products made from halal ingredients.
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.
Page 16 of 30
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.
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.
Page 17 of 30
Diagram 4 – Positioning of Noode
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.
Page 18 of 30
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:
Page 19 of 30
•Advertisements in local radios, channel 89.1, 101.6,
104.8
Advertising
•Advertisements in local newspapers and papers in
•Exhibitions various
•Markets
•Press / Magazines
•Advertisements in local fashion and beauty
•Internet Pop-ups magazines
•Free make over •At least one success story per month in local beauty
magazine to attract the market image and informing
Page 20 of 30
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
percentage in this section.
Advertising 45%
Page 21 of 30
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.
Page 22 of 30
Bibliography
Books
• David Jobber, “Principles and Practice of Marketing”, 5th edition, McGraw –Hill
Companies, London 2007.
• Tony Lindley, “Marketing Management, Bradford Study Guide”, Dubai, U.A.E. 2007
Internet Sites
• http://www.godubai.com/citylife/press_release_page.asp?id=14859&search=
• Introduction &Executive summary
(N.A.2008) http://findarticles.com/p/articles/mi_m0DTI/is_1_32/ai_n6019377[Accessed
25/04/2008]
• http://www.allbusiness.com/retail/retailers-health-personal-care-stores-cosmetics/8078623-
1.html
• (N.A 2008) http://www.entrepreneur.com/magazine/entrepreneur/2004/january/66104.html
[Accessed 05/05/2008]
• http://www.highbeam.com/doc/1G1-97131769.html
• http://www.zoominfo.com/Search/PersonDetail.aspx?PersonID=385041013
• Marketing Mix : http://www.marketingteacher.com/Lessons/lesson_marketing_mix.htm
Page 23 of 30
Appendix I
Implementation Timeline for Noode Marketing Plan (Publications & Hoardings)
Oct 2008 to April 2009 OCT '08 NOV'08 DEC'08 JAN'09 FEB'09 MAR'09 APR'09
Fortnighty 1 2 1 2 1 2 1 2 1 2 1 2 1 2
Description Responsibility
Budget
Prepareation of Budget for ASC Adv Heads of MKT
Present to Executive Committee for Approval Heads of MKT
Advise Concerned units on approval Heads of MKT
Advertising
Prepare advertising requirements Heads of MKT
Call for quotations from Adv companies Head of MKT
Obtain necessary approvals Heads of MKT & GM
Page 24 of 30
Page 25 of 30
Appendix II
Implementation Timeline for Noode Marketing Plan (Event & Newspapers)
Page 1 of 30
AppendixII - Continued
Implementation Timeline for Noode Marketing Plan (Event & Newspapers)
7 Days
Gulf News
Khaleej Times
Al Khaleej
Al Bayan
Al Ittihad
Emirates Today
Page 2 of 30
Appendix II - Continued
Implementation Timeline for Noode Marketing Plan (Event & Newspapers)
March
Event 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 3 3
1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1
Dubai Int Boat Show (TPO)
7 Days
Gulf News
Khaleej Times
Al Khaleej
Al Bayan
Al Ittihad
Emirates Today
Page 3 of 30
Page 4 of 30