The marketing proposal is designed for the Australian market. It has been found that Australians are very much prone to skin cancer and almost two out of three Australians are diagnosed with skin cancer by the age of 70 (Victoria, 2012). It has also been found that the trend now is to do prevention before the disease to occur. The product designed to be launched is a nutricosmetics product, which are the combination of cosmetics and pharmaceuticals (Kline & Company, 2008). The nutricosmetic products are anti oxidants, beauty products with nutritional value for the skin. Since, skin is being the largest organ of the body and exposed directly to the environment and thus needs the most care (Simpson, 2011). It is advised to Australians to avoid sun exposure and must use sunscreens which is again a nutricosmetic product. The product which is going to be marketed is ‘Laracare^TM A200’ of Lonza Group Ltd. Company (Group, 2012).

2. Environmental Scan

The environmental scan involves the internal analysis of the organization and also the analysis of competitors and nutricosmetics industry. It also includes PESTL analysis.

The Lonza Group Ltd strives to be leading supplier by application of science and technology for improving quality of life of people. The company was founded in 1897 but started it biotechnological business in 1980. The company is headquartered in Basel, Switzerland, and is catering with seven different markets, of which Laracare A200 is a nutricosmetics product which comes under its Personal care market. The company is present almost all over the world.

SWOT Analysis of Lonza Group, AG.

1)      Strengths:

a) The company is the leading suppliers of pharmaceuticals, healthcare and life-sciences products.

b) The company is listed on the Six Swiss Exchange.

c) Present in the market since 1897

d) The company is the leading company in corporate governance.

e) It has also been awarded with best ingredient award in 2011 (Group, 2012).

2) Weaknesses:

a) The nutricosmetics sector involves skepticism and a degree of nervous excitement (Unknown, Nutricosmetics: Key European Food Legislation, 2011).

b) Huge competition

c) Variety of substitute products available in the market

d) Nutricosmetic market is tiny as compared to other personal care market.

Refer Appendices for figures

3) Opportunities:

a) The demand for prevention drugs are increasing. People are willing to take prevention than taking care after getting the problem

b) The total skin care market has grown by 6.2% CAGR

c) Europe is one of the largest nutricosmetics market (Company, 2008).

d) Nutricosmetic is new and growing market

4) Threats:

a) Too much competition in the market

b) New and tiny as compared to other personal care market

c) Legislative issues, whether the product is in food market or in pharmaceutical market. But EU council considered it to be a medicine (Unknown, Nutricosmetics: Key European Food Legislation, 2011).

The Lonza Group AG’s top competitors involve:

• BASF SE, located at Ludwigshafen, Germany
• Bio-Rad Laboratories, Inc, located at Hercules, CA
• Cambrex Corporation, located at East Rutherford, NJ
• Borba, Inc etc

Venn diagram for competitors:

This will be a venn diagram for competitors in the nutricosmetic market. There are several other companies in the market dealing with similar products, but these are few top competitors of Lonza Group (Inc, 2012).

The PESTEL analysis of Laracare A200 is as follows:

Political: The political issues are not much in the marketing of the product in the Australian market. It will depend on Australian government policies on the distribution of the product. The level of subsidies provided in the manufacturing of the product. It will also involve global issues related to world trade agreements  (Gillespie, 2007)

Economic: Economic factors will involve changes in tax rates, inflation, economic growth rates, spending capacity of the customers.

Social: It will include demographic changes in the segmented customer group, changes in population growth, and mitigation flows can also increase or decrease the sales of the product (Gillespie, 2007).

Technological: It could be changes in technologies, such as promoting of product through various high technology sources as promoting online, 3d, digital tv, etc.

Environmental; This product is extracted from the Larch tree, so environmental issues could arise in terms of cutting of trees, and climate changes affecting on skin, Sun exposure etc.

Legal: Legal issues in nutricosmetic product are that it’s confusion whether they should come under food products or medicines, but EU council has considered seeing the usage it as medicine and not a food product (Unknown, Nutricosmetics: Key European Food Legislation, 2011)

The following Questionnaire is prepared for the primary research of the nutricosmetic product:

1. Name:
2. Age:
3. Gender:  Male or Female
4. Income group:

Q1: Are you taking any supplements?

A-    Yes      No

Q2. Are you aware of nutricosmetic products in the market and their usage?

A-    Yes      No

Q2: Have you ever tried any of the nutricosmetic products available in the market?

A-    Yes      No

Q3. Are you taking the supplements or the product on daily basis?

A-    Yes      No

Q4. Which are the places you prefer to buy your health care products/ nutricosmetics/ and supplements? Can select more than one

€ Supermarket

€ Pharmacy

€ Online shopping, please specify the site…………………………….

€ Superdrug stores

€ Boots

€ Others, Please specify………………………….

Q5. What do you prefer more for health and beauty care, external treatments like creams and lotions or internal treatments like pills and supplement?

A-    € Internal products

€ External treatments

€ Anything is preferred

Q6. Do you prefer applying new range of beauty care products?

A-    Yes      No

Q7. What are your beauty concerns?

A-    € Sun Protection         € hair loss

€ Wrinkles                  € Dryness

€ Blemishes                € Dry hairs

€ Acne                                    € Tanning

€ Fairness                    € Others, Please specify……………..

€ Nails                                    € No concerns

Q8. What is ratio of using internal products and  external treatments on regular basis?

A-    External Treatment…………………………..

Internal Suplements…………………………

Q.9 Do you agree, that prevention of health is more important than cure?

A- Yes             No

Q.10 Is it important for you to look youthful?

A-  Yes                        No

Q.11 How much would you be willing to spend on external care treatments for your skin?

A- € $0 – $5                € $20 – $30

     € $6- $10               € $31-$40

     €$11- $15              € More than $40

      € $16- $20

Q. 12. How much would you be willing to spend on internal supplements treatments for your skin?

A- € $0 – $5                € $20 – $30

     € $6- $10               € $31-$40

     €$11- $15              € More than $40

      € $16- $20

Q.13 Do you relate beauty with health?

A- Yes             No

Q.14  Do you agree with the statement that ‘the health supplements are related to health issues and nutricosmetics with beauty issues’?

 A- Yes                        No                   Don’t know

Q.15 Have you heard about Laracare^TM A200, a nutricosmetic product for skin care?

A- Yes                         No

The new product is named as Laracare^TM A200, which is a product of a leading company, Lonza Group Ag. This product is very effective natural enhancer for skin care and a sunscreen. It is mild, and water soluble which takes care of the skin without irritation and is natural so no side effects. This product provides long lasting moisturization for the skin and also decreases transepidermal water loses in the skin. It also reduces fines lines and wrinkles in the skin and makes the skin appear youth. It helps in uniform distribution of pigments in the skin (Group, 2012).

This product is miraculous for the skin without any side effects. Since Australians are more prone to skin diseases, this product will serve them as the best prevention measure. They need sun protection whenever exposed to Sun, and Laracare is sunscreen too. It is an external treatment for the skin (Victoria, 2012). The product is extracted from the Larch tree and so got its name Laracare (Group, 2012).

Every customer is different and so is their needs and wants. So, proper segments of customers should be diagnosed and served according to the needs of different group of customers. The potential segment of customer is to be decided for the product to be placed.  Similarly, for proper placement of products, target market is to be decided. (Perner, 2010). Segmenting, Targeting and Positioning are the three important stages of the marketing process which is as follows:

Market should be segmented according to the best matching to customer needs. Segmentation could be done on the basis of customer needs and wants, income group. The promotional message of product should be focused on the target customer group (Unknown, Market segmentation- why segment markets?, nd).

Potential segment for Laracare^TM A200:

The product holds good for both i) men and women but the age group of the segment of men is 25 years and above, and for females 28 years and above, as their skin is more gentle and anti wrinkle treatments should be applied 25, so suitable age found for women is 28 years and above. And the product is segmented in medium income group segment.

Based on our market segmentation, we need a target market, where we need to target our product. The product is required to be delivered to the right customer group. If the target market is too broad then there are chances that prime customers could be missed out, or else cost of promoting and communicating to customers will be very high (Unknown, Market segmentation- why segment markets?, nd).

From the market segment the appropriate target market for the product Laracare A200, would be:

Women above the age group of 28 years with middle and high income group would be the most appropriate target group. Considering both men and women would be a huge market to cater to, communicating with the target customer would be very difficult and expensive (Unknown, Market segmentation- why segment markets?, nd).  Women are found to be more careful about skin and it is easy to first enter in to women segment and later on targeting on Men too. As this product could be used by any gender, but issue would be promotion and communication to target customer as if target market is too big to cover, the key customers could be left untapped.

Australians suffer from skin diseases and skin cancer the most, and this product is natural and a sunscreen too so could be applied regularly. As it is also a costly to purchase such products on regular basis the target segment would be Middle and High Income group.

Since this is also used for removing wrinkles and fine lines on the skin, the target age group would be above 27 years of age.

Source: Lars Perner, 2010.

Positioning of Laracare A200, that is implementing our target market (Perner, 2010).

Product: The product Laracare A200 is not for a premium group, but will be positioned for women above age of 28, good for all skin types.

Price: price of the product is comparatively high as it a high quality and a natural product so positioned middle, higher middle and higher income group. The price is still under discussion but would approximately between $25- $27 for 250 ml.

Promotion: promotion of the product would be done on TV commercials, print media, promotions through dermatologists, hoardings, and distributing samples to target customers to communicate with the target customer group.

Distribution: of the product will be through super markets, Boots, pharmacies, dermatologists, and online distribution, primarily in Australian market.

The goal of our marketing strategy is to achieve the organization’s goal in the give period of time. The prime goal of marketing is to attract maximum target customers, and increase the sale of the product. So, the marketing strategy is developed with correct marketing mix for Laracare A200, to gain maximum market share in this sector.

6. The marketing Mix

The correct blend of marketing mix decides whether the product will be successful in the market or not.

The new product is named as Laracare^TM A200, which is a product of a leading company, Lonza Group Ag. This product is very effective natural enhancer for skin care and a sunscreen. It is mild, and water soluble which takes care of the skin without irritation and is natural so no side effects. This product provides long lasting moisturization for the skin and also decreases transepidermal water loses in the skin. It also reduces fines lines and wrinkles in the skin and makes the skin appear youth. It helps in uniform distribution of pigments in the skin (Group, 2012)

The product would be launched in Australian market, as they are more prone to skin issues and so are more concerned for skin. From the research it is found that customers prefer to buy products online to spare time, they also prefer Boot shops, pharmacies, dermatologists, supermarkets for such kind of products. So Laracare would be placed in all thse places

6.3 Promotion

Promotion of the product would be done on TV commercials, print media, through dermatologist’s prescription as customers trust them, hoardings, and distributing samples to target customers to communicate with the target customer group.

Price of the product will be in between $22-$25 for 250 ml. This product is made high quality natural raw materials and don’t have any side effects so keeping low price than the value would not be justified.

Recommendations made after the research are as follows;

1. The target market segment right now is women above the age group of 27 which could in future include men also above the age group of 25.
2. It is required to attract brand loyal customers to this brand.
3. Marketing strategy requires creating hype among the customers, so that they are ready to try once.
4. The benefits of the product are unique and should be made understood to the brand loyal customer using different products.
5. To step in to the segment of brand loyal customers of different products, the promotion strategy should be such that they are ready to apply and use the product at least once.

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