newspapers to television advertisements. Our foremost research enables us to
believe that the Olympics in the year 2000 is the ultimate marketing entry gain.
By utilizing this direct market approach there are several promotional and
advertising methods, not the least of which, that F.H. Faulding is an Olympic
sponsor for the Sydney 2000 games. If we choose an Olympic team or spokesperson,
we can market/advertise through actual team/athlete T-shirts, hats, etc. This
would yield global advertising and public relations that could be a valuable
option as the games approach. Along with our product name and unique features,
we have contracted with Ken Done (a world renowned painter, based in Sydney) to
design our packaging and create other promotional materials as well (e.g., beach
bags, towels, etc.).
Market plan range/rollout
Sun Cosmetics anticipates completion of all contracts and legalities by mid-1997
and will then begin product distribution in late 1997, by introducing our
product line in Sydney, the highest populated area and one of the largest
tourist stops. After advertising and promotion have gained the attention and
recognition of the home market, we will get directly involved with the Olympic
sponsorship. Promotional items such as free samples, will be distributed in
advance, to gain brand recognition. In 1998 we plan to move into Melbourne,
Brisbaine, the Great Barrier Reef region and New Zealand’s South Island.
Towards the end of 1988, we will gear up for our entrance into Perth, New
Zealand’s North Island and Tasmania in 1999. The final oceanic regional move
will be in the year 2000 when we will complete our market rollout by entering
Fiji, New Caledonia and Tahiti. (This will allow us the time to conduct the
necessary primary research on these outlying countries/territories whose
secondary data was limited.) During the summer of the year 2000, we will
initiate our global presentation to expand our market to the other communities
of the world during the Olympic games being held in Sydney, New South Wales,
Australia, 2000.
Financial portrayal
Partner percentage expense (25%)* 2,000,000
Distribution expense 500,000
Expatriate compensation 100,000
Trademark fees 8,000
Patent fees 5,000
Packaging expense (Ken Done) 20,000
Give-away expense 25,000
Advertising expense 200,000
Olympic giveaways/sponsorship 250,000
Tax expense 35,000
Raw material expense 60,000 Total Operating Expenses
3,203,000
* Projections are based on $8,000,000 in 1997 sales.
(Just-in-time inventory system to be utilized for raw materials, with the
distributors warehousing the final product in the particular city of
import/distribution.)
Market share projections: 1997 5% 2,000,000
1998 15% 1,500,000
1999 5% 1,000,000
2000 5 500,000
1997 10% 5,000,000
1998 10% 4,500,000
1999 10% 3,500,000
2000 10% 2,500,000
1997 15% 8,000,000
1998 15% 7,000,000
1999 15% 6,500,000
2000 15% 5,500,000
15% is a conservative estimate of the market share attainable by 1999 for this
product, in this plan. The current market demand is growing at an accelerated
pace, with our established competition holding market shares in excess of 20%.
Due to the nature of Australia’s quality demands and the incident of skin cancer,
our product will capture a significant market share quickly. Retail selling
prices: $ 8.50 (U.S.) in urban areas, and $10.50 (U.S.) in rural areas based on
a 90 ml container.
Alternative entrance/contingency
Overall success of our plan of entrance into this region may rest solely on our
ability to implement a worthy alternate or contingency plan should we encounter
any major setbacks. Based on corporate profiles and market research, we have
determined that the best contingency plan is to form a joint venture with
Hoechst Australia Ltd., located in Melbourne, Victoria, Australia, and utilize
their established production and distribution system. An alternative supplier
of raw materials has also been coordinated, should the need arise. This plan is
designed to be a substitute source or can be used to supplement the primary
source if sales increase faster than projected or we encounter any other
problems.
Conclusion
As an overview, statistics have shown that the Oceanic Region has the highest
amount of skin cancer and sun related damage in the world. Awareness and the
magnitude of this problem are apparent to residents and tourists, thus creating
a high demand for our sunscreen products. Our target markets are tourissts,
teenagers/young adults and parents with young children which makeup the majority
of the people directly effected by the sun. Presently, entrance into this
market is low risk. This is primarily due to the fact that language, cultural
and trade barriers do not exist. Also, the market is not saturated and our
initial expense and risk is limited due to our joint venture. We can gain a
high percentage of market share throughout this region by 1999 and begin our
global debut at the summer Olympic games at Sydney in the year 2000.
Appendix A
Here are some facts about skin cancer itself there are three basic types of this
disease. Basal cell carcinoma, squamous cell carcinoma are two types of cancer
that can cause disfiguring to the body but are not fatal. The third is
malignant melanoma which behaves like an internal cancer. It starts as a mole
and can spread to other parts of the body. The sun’s ultraviolet violet rays
are the most significant between 11 AM and 3 PM. This is the time that the
majority of children and outside labor workers are in the sun. In Australia’s
summer months’, exposure is so serious that safe sun time before damaged is
caused in Darwin is only 9 minutes. In Brisbane 11 minutes, Perth 10, Sydney
and Adelaide about 12 minutes. To demonstrate the concern for skin protection,
researchers have developed a T-shirt that has an ultraviolet sensitive paint on
the front of it which when exposed to the sun its picture will change color
revealing the radiation that the human eye cannot detect. It is said that by
the year 2050, society will not be able to go in the sun if humankind does not
recognize this issue.
Australia has developed a “slip slop slap” motto to promote skin protection.
Slip on a shirt, slop on sunscreen and slap on a hat.
Appendix B
There are several resources that we can use to discover our possible available
market for distribution. The services are located by contacting the local U.S.
Dept. of Commerce distribution. 1) Agent distributor search (AD) The US
commercial service will locate and screen potential Australian agents and
representatives for US companies. CS Australia will send information to
possible companies that might have an interest in our product. If the company
responds, the CS will make the opportunity for direct contact available. 2) CRS
Gold Key Service This idea makes it beneficial for US company representatives to
see the various services available. Such as market orientation meetings,
research, distributor searches and screening. They are an affective service
that truly widens the firm’s eyes in a particular country. 3) Customized Market
Analysis (CMA) This assessment provides information on the product’s potential
laws. This is very important to us as a joint venturer, because we need current
data and monetary trend information which oversees research. 4) CS — Catalog
Exhibitions CS Australia actively participates in trade shows, and a variety of
other trade events that provide actual catalogs or products for direct display.
5) Introduction to Australia
This new entry program is affective and inexpensive to test the Australian
market. Specific American firms in that industry contact Australian fin-ns. A
selected target industrial market is chosen through local agents and
distributors. Interested participants then actually follow up directly.
The CS also actively participates in trade missions, trade events, and the trade
opportunity program (TOPS). This service provides trade leads that manufactures
may request for representation, investment, licensing and finally joint ventures.
The last two services offered by CS are market research reporting and commercial
USA. The market research and reporting continually tracks major industrial
investments, projects, and policy developments.
Commercial news UA provides on new U.S. products available for the export market.
This distribution information goes to about 1,000 potential agents and
distributors in Australia. This service also identifies possible joint venture
participants. This distributive information goes to Australia. All of these
services are imperative to regarding possible market distribution resources.
Resources:
Austrade Australian Trade Commission 630 Fifth Avenue, Suite 420 New York, NY
10111 Nicholas Doumani (212)408-8473
Bureau of Tourism Research
Cambridge Encyclopedia of Australia Press Syndicate University of Cambridge 1994
CD ROM — U.S. DOC, International Trade Administration March, 1996
CD ROM — National Trade Data Bank February, 1996
Europa World Year Book 1995 London: Europa Publications Limited Volumes 1 & 2,
Pages 1236-1237 and 1246-1247.
Internet: HTTP://WWW.TELSTR.COM.AU/META/AUSTRALIA.HTML