Final Marketing Plan Temox

Marketing Plan For Temox Multi-Insect Killer

Submitted By: 8- Lo Chiong, Johann Adrian 9- Mateo, Sandy 12- Ng, Jazzmin Rose 13- Ng Cheong, Jamie Mariah 17- Yeung, Charleston Jhon

Submitted To: Ms. Maribel O. Chan

0|Page

CHAPTER 1: CURRENT MARKET SITUATION ANALYSIS

I. Industry Study

Composition / Size / Market Segments

Temox belongs to the chemical manufacturing industry and is one of the largest growing industries as of 2016 (The Chemical Industry, July 21, 2016). The chemical industry is one of the most influential industries worldwide because of its many categories which includes plastic industry, food industry, automobile industry, glass industry and other industry which are highly dependent on chemical components. Table 1 shows that insecticides are divided into categories such as electric insecticides, insecticide baits, insecticide coils, spray/aerosol insecticide, and other home insecticides that comprises the home insecticides.

 As seen on table 1, spray/aero spray/aerosol sol insecticides insecticides rank highest highest in sales. sales. Temox Temox multi-insect killer is classified under this category. The data provided also shows how the sales of spray/aerosol insecticides are increasing annually by 474.6 million in average.

1|Page

Sales of Home Insecticides by Category 2010-2015 2015 2014 2013 2012

Sales of Home Insecticides by Category 2010-2015

2011 2010 0

2000

4000

6000

8000

10000

12000

Usership Patterns / Significant Buying Habits People buy insecticides when their home, headquarters or residence are being infiltrated by pesky household insects such as cockroaches and mosquitoes that may affect their daily life. Insecticides, is a type of pesticide that are used to exterminate, damage, fend off, or lessen some group of bugs (“Insecticides”, 2015). People also buy it because it safeguards their health which leads to countless lives saved by warding off a number of diseases. (“Insecticides Benefits Of Insecticide Use”,n.d.)

People can search for information about a product in numerous ways such as through online peer reviews or product reviews. (Laja, n.d.) People could also inquire product experiences from their friends, family, and neighbours, however, they could also refer to non neutral sources of data such as ads, brochures, company sites, and salesperson.(Tanner & Raymond, 2012)

2|Page

There are numerous health concerns because of some of the popular insecticides contain glyphosate and atrazine that maybe cause harm to people, causing people to choose a safer alternative instead such as homemade sprays and solutions, and natural chemical solutions. (Graham, 2009) People will buy the product if they really need it. Some factors like economic factor, which is affordability of the product, functional factor, which is how much you need the product and psychological factor, which are advertisements that may hit your emotions can affect people to purchase the product or not (Herald, 2008).

 After purchasing the product, people decide if what they’ve purchase is up to their expectation, if not they will suffer from buyer’s remorse which will lead people not to buy the product again or tell others their bad product experience.(Tanner & Raymond, 2012)

Other Market Characteristics

 According to Allied Marketing Research, mosquito repellents are being used to keep mosquitoes away and prevent mosquito diseases such as dengue fever, Zika virus, chikungunya and etc. Mosquito repellents such as DEET can cause skin allergies, and breathing problems. Consumers switch to herbal based repellents. Such as citronella oil, birch tree bark and other plant based ingredients . The table below shows the top factors impacting world mosquito repellent market.

3|Page

Source: https://www.alliedmarketresearch.com/mosquito-repellent-market

II. Current Product/Brand Situation

Brief history of the product/brand

Mr. Artemis Go Cheng started Temox when the known leading brand in insecticide cut their ties with Monsi Chemical Manufacturing Industry. Monsi was the leading brand ’s supplier of chemicals and other parts of the product like cans, sprays, and plastics when a misunderstanding happened between the two companies, making the leading brand leave the partnership. It was then when Monsi decided to create its very own product that is proudly produced in the Philippines and very affordable for all classes of markets to purchase. They first ventured in making chemical products three years ago. Although they are new in the market, Temox is the only product that has the same effectiveness as the leading brand with a much more affordable price. Monsi supplies Temox in Metro Manila and hopes to expand their market to the provinces where it is more needed. Past and current marketing strategies 4|Page

Temox is new in the insecticide industry for it only started three years ago. It is aiming to have tri-media advertising to further introduce the product to all Filipino households for it to be able to boost their current sales and to become the leading brand of insecticide in the Philippines and the world by exporting their products locally and internationally. (T. Anton, personal communication, August 17, 2016).

Below is a list of Temox’s insecticide products and its prices:

100ml

300ml

600ml

P68.00

P165.00

N/A

P63.00

P155.00

N/A

Temox Multi Insect Killer Water-Based Temox Multi Insect Killer Kerosine Source: Metro Supermarket

5|Page

Temox is widely distributed to Metro Manila and can be found in retail establishments. To increase their sales, Temox has been engaging in market penetration hence they have been promoting their product by bus ads, mass display, billboard advertising (T. Anton, personal communication, August 17, 2016).

Source: www.facebook.com/temox.ph

To further promote their product, Temox’s promotional activities includes the following : Participating in the Super 8 Funfest in World Trade Center.  Anti-Dengue Activity in Barangay  Apolonio Samson where Temox shared tips for a cleaner environment and awareness in Dengue and Chikugunya. They also shared about prevention in Zika virus in Barangay San  Andres Bukid Zone 8. They are also doing supermarket promos which includes product discounts and bundling. They also did “Ruleta ng Temox” wherein if a customer bought P200 worth of Temox products, they can have a chance to spin in the roulette and win prizes. Temox also created a 3-minute video advertisement of their product posted in their facebook page. Several blogs have also featured and reviewed Temox. (T. Anton, personal communication,

6|Page

 August 17, 2016).

Source: www.facebook.com/temox.ph

Relevant Market/ Definition of the Market or Market Segment Targeted

Temox has reached most of their primary target which are households that are based in Luzon, especially in Metro Manila. Temox is currently available at almost all retail establishments throughout Luzon. According to T. Anton, Temox also serves the people of all classes (Class A to D) because of its affordability. The primary market segment targeted by Temox are

mothers with ages 25- 45 who doesn’t want to stress themselves by using the

traditional way of killing insects. People nowadays want things to be done more efficient. Insecticides are far more effective than slippers because it provides maximum killing power against all insects in just one spray. The secondary market segment targeted by Temox are commercial establishments that uses insecticides to prevent insects from getting in their offices and for sanitary purposes.

III. Competitive Situation

7|Page

Baygon, a product of SC Johnson & Son Inc. remained the dominant leader in insecticides for the year 2015 with an 82% value share as seen on the table below. Greencoil Industries Incorporated holds the second to the highest value share in the Philippines. These two companies have the highest company shares from 2011 to 2015.

The major competitors of Temox are: SC Johnson & Son Inc. and Neumann & Mueller Philippines Inc. These two companies are in the home insecticide industry far longer than Temox. They are considered as top competitors by Temox. (T. Anton, personal communication,  August 17, 2016)

1.) Baygon

SC Johnson started its company in 1886 as a parquet flooring. It is now one of the world’s leading manufacturer of household products. Its leading brand are Pledge, OFF, Kiwi, Mr. Muscle, Glade, and Baygon. PRODUCT

8|Page

SC Johnson manufactures household products for cleaning, air fresheners, pest controls, storage for foods, and Shoe Cares. Their well- known product is Baygon which is a pest control product. Baygon consist of different product forms like aerosol cans, coil, mat, liquid, sprays, bait, chalk, and paper. PRICE Baygon Protector MultiInsect Killer 300ml

Baygon Multi- Baygon MultiInsect Killer Insect Killer Odorless 300ml  Aerosol 300ml

P176.00

Baygon Crawling 500ml P282.75

Protector Insect Killer

P182.00

P171.00

Baygon Cockroach Killer  Aerosol 300ml

Baygon AntiDengue Mosquito Killer

P182.90 z P260.50

PLACE

9|Page

Baygon is a leading brand and has a large market share in the industry. It can be found and sold at every store such as SM supermarkets, Metro Supermarkets, Puregold, Unimart, Ever Supermarket, Ace Hardware and other supermarkets nationwide.

PROMOTION

SC Johnson advertise Baygon through, TV Commercials, Newspapers, and Bus advertisements. They also do promotions like bundle promotions, and in house marketing like placing the product at the center of the isle, positioning their product at eye level.

2.) Advanced

 Advanced Mosquito Killer Aerosol, a product of Neumann & Mueller was appointed in 2003 as the exclusive distributor and marketing intermediary of Bayer Environmental Science in the Philippines to handle the distribution of insecticides in consumer retail accounts nationwide. Their products include Advanced Mosquito Killer Aerosol , Advanced Insect Killer Water Based  Aerosol, Banzai Pet Catch Sheet, Bayopet, Bayer Racumin and Bayer Blattatex.

PRODUCT 10 | P a g e

Neumann & Mueller manufactures household products for pet care , pest controls, cockroach killer and rat control . Their well- known product is Advanced Mosquito Killer which is a pest control product. Advanced Mosquito Killer consist of product forms like spray and chalk.

PRICE

 Advanced Mosquito Killer 500ml

 Advanced Mosquito Killer 300ml

P260.00

 Advanced Multi-Insect Killer 300ml

P185.75

P175.00

Source: Robinsons Supermarket Las Pinas

PLACE

 Advanced Aerosol cans and Advanced chalk can be found and sold at SM supermarkets, Robinsons supermarkets, convenience stores and other establishments.

PROMOTION

Neuman & Mueller advertise Advanced Insect Killer through TV Commercials, billboards, and currently in social media which can be seen a lot in YouTube. CHAPTER 2: SWOT ANALYSIS

11 | P a g e

Strengths

Weaknesses

  Affordability









New in the market



Lack of brand exposure

Eye catching packaging Product formulation 





Locally made in the Philippines

 

Convenient and effective

Opportunities

Threats



Expansion of market





Rising mosquito borne diseases









Less variety to offer  Product availability Health conditions of employees

Increasing number of supermarkets, malls and retail stores Increasing number of social network and internet users Increasing number of tropical insects in the country







Leading brand is more well known Consumer’s lack of knowledge about insecticides Other product alternatives Competitors offering the same product Increasing consumer power 

12 | P a g e

Strengths

1. Affordability Compared to the leading and well known insecticide brands in the market like Baygon, Advance, Kwik, Combat, Strike, etc. Temox is ten to fifteen percent (10-15%) more affordable than the leading brands. Though it is less expensive, it offers the same effectiveness as the leading brands provide. People will prefer to buy Temox since they can save more for it is more affordable yet can still offer the same quality effectiveness. 2. Eye Catching Packaging Temox offers better packaging design than the leading brands. Compared to the packaging of the com peting brands, Temox’s is simple yet eye-catching because of its bright packaging color and a big arrow drawn downwards in the center. Consumers will most likely first notice and take interest of Temox among the other brands from a far for it stands out because of its bright packaging. 3. Product Formulation Temox has the same effective formulation as the leading brand. It has a fast knockdown effect that kills mosquitos, cockroaches and other insects. Its formulation is also environment friendly with biodegradable ingredients compared to the leading brands. Consumers will prefer to buy Temox because it has the same effective formulation as the leading brands and it has safer ingredients.

13 | P a g e

4. Locally made in the Philippines Temox is manufactured in the Philippines. Having been locally produced, Monsi was able to cut down cost in many ways like shipping cost and packaging cost. Whenever there are problems in the product it is easier to contact the company. 5. Convenient and effective It is convenient and effective because it is ready to use in just one sp ray and it doesn’t need to exert much effort unlike other product that needs a lot of energy to use the product.

Weaknesses

1. New in the market

Temox recently started for about 3 years ago. Since it is new in the market, it is having difficulties on how to be more well known. The other brands are far more longer in this industry, that’s why Temox is still trying their best to keep up with them.

2. Lack of brand exposure

Being able to do tri-media advertising as a company already has a big impact. An effect of this is that your product is going to be more well known to the market, and being well known to your market can lead to your customers to buy more of your product. Not being able to do trimedia for Temox is a disadvantage for it can boost your sales, gain more customers and be more well known to the market.

14 | P a g e

3. Less variety to offer Temox does not offer a wide range of products. Compared to the leading brand, they offer less variety of products to choose from. Because of this, people tend to move their attention to the leading brand because they consume a larger space on the grocery shelves.

4. Product availability Not all of their products can be found in some supermarkets. They are not yet available outside Metro Manila where it is more needed because their environment are more susceptible as a mosquito breeding area. 5. Health conditions of employees Because the workers are exposed in various chemicals in making the product, they are in risk of being in poor health conditions that might affect their ability to function well.

Opportunities 1. Expansion of the market Temox is only sold in Metro Manila, and being able to sell to the provinces is a big opportunity for Temox since insect killers are more needed there and citizens from the provinces tend to have smaller budgets. Temox is the right product for them since it is affordable and as effective as the leading brand.

2. Rising cases of mosquito borne diseases 15 | P a g e

Consumers in the Philippines usually use insecticides throughout the year due to the fact that Philippines is a tropical country. Dengue outbreaks and the recent case of Zika virus in Visayas had an effect to consumers to take an intense amount of precaution to eliminate any threat coming from mosquitoes as well as other insects. 3. Increasing number of supermarkets, malls and other retail stores. Supermarkets, malls and other stores are increasing and being built in cities and provinces. This can be an opportunity for Temox to distribute their products so that more people can be aware of it.

4. Increasing number of social network and internet users Temox can use this opportunity to reach out to their target market through use of internet and social medias like Facebook, Twitter, and Instagram. Temox can make use of this to further advertise their products online so people can know more about them and what products they could offer. 5. Increasing number of tropical insects in the country The Philippines is a tropical country, therefore it is bound to have lots of insects and other pests. Consumers will always need insecticides in their household if they want to prevent diseases like malaria, dengue, filariasis, and the newly alarming zika virus that can be obtained from mosquito.

Threats

16 | P a g e

1. The leading brand is better known

The leading brand today here in the Philippines is Baygon Insecticides from the company SC Johnson & Son Inc. It has been the leading brand ever since it started here in the Philippines. Consumers would buy and strongly trust the leading brand instead of other brands in the market.

2. Consumers lack knowledge about insecticides

Consumers usually don’t care about the chemical mixtures of the insecticides. Chemical mixes for insecticides may be hazardous to the heath of consumers. For insecticides to work the insect should be able to touch the chemical for it to die. Consumers tend to think that the product is ineffective.

3. Other product alternatives

Citronella products are repellants for mosquitoes. It is also similar to insecticides but safer because it is organic, although it’s not used to kill insects. Citronella is not toxic to humans and animals. It is usually used for children to reduce the chance of being infected by dengue.

4. Competitors offering the same product

17 | P a g e

Competitors in the same industry offer common products to the market. For example, Monsi has the Temox Multi-Insect Killer while SC Johnson & Son has Baygon Multi-Insect Killer. Consumers will choose the brand that is most familiar to them if common products are produced.

5. Increasing consumer power Technology has never been so powerful. It has given consumers the power to make and break the reputation of the companies. More and more people have access to the internet especially social networking sites that contain product reviews or opinions of the customer regarding a product that can affect how other potential customers think of the company and its products.

CHAPTER 3: GOALS AND OBJECTIVES

18 | P a g e

Statement of goals of the firm for the product/ brand The goal of Temox Multi-Insect killer is to produce affordable and effective insecticides, increase brand awareness by producing a tri-media ad and to become the leading insecticide brand in the Philippines and worldwide. Short term objectives (for the next fiscal year)



Increase brand awareness by 20%



Increase annual sales by 15% Medium term objectives (for the next 2-3 years)



Increase brand awareness by 40%



Increase annual sales by 30% Long term objectives (for the next 4-5 years)



Increase brand awareness by 70%



Increase annual sales by 60%

19 | P a g e

CHAPTER 4: MARKETING MIX STRATEGIES AND PROGRAMS

I. Target Market The demographic characteristic of the target market is households with ages of 21-50. Psychographic characteristics of the said market are working and non-working households who don’t want to exert much effort in killing household insects. II. Product Development/ Innovation Program Unique Selling Proposition For middle class households who are sensitive to bad odor, Temox Multi-Insect Killer (Unscented) is not only new but is the most affordable product that is unscented and specially formulated oil-based liquid spray that effectively controls and kills mosquitos and cockroaches in your home and provides protection from disease-causing flying and crawling insects. Quality Temox Multi Insect Killer (Unscented) is formulated with Impirothrin and cypermethrin that effectively kills flying and crawling insects while keeping the environment safe and your loved ones too.

Packaging The group changed the packaging of the product. The original packaging of the waterbased Temox Multi-Insect Killer is color yellow but we changed it to color blue because the color of water is blue for people to be able to recognize the label easily and we changed the packaging of kerosene into color yellow . The packaging of our new product is color white and at the back we put the ingredients of the product

20 | P a g e

ACTIVE INGREDIENTS: IMPIROTHRIN……………………….0.10% CYPERMETHRIN…………………….0.10% OTHER INGREDIENTS:……………99.80%

III. Pricing Program The price of Temox Multi-Insect Killer is very affordable. What made the cost lower is that Monsi Chemical Manufacturing Industries manufactures the product themselves unlike other products who have a different manufacturer. This is what Monsi wants because they want all consumers to be able to buy the product, even with a small budget. IV. Sales and Distribution Program

•Monsi Chemical Manufacturing Industries

Manufacturer •Wilcon

Retailers

Depot •Wilcon Home Essentials •7-Eleven •Ever Supermarket •Puregold Jr. •MC Home Depot •South Supermarket •Isetann Supermarket

Consumer

Monsi Chemical

Manufacturing Industries is the one who produces and distributes

Temox in Metro Manila. Some of Temox’s retailers are Wilcon Depot, Wilcon Home Essentials, 7-Eleven stores, Ever Supermarket, Puregold Jr., MC Home Depot South Supermarket and 21 | P a g e

Isetann Supermarket. The consumers of Temox is mostly households that cares for their family and will not allow any family members to get sick because of mosquito-borne diseases.

V. Marketing Communication Program

22 | P a g e

In scene 1, the family can be seen that they are enjoying their quality time together watching a movie. In scene 2, a mosquito can be seen planning to disturb the family. The following scenes shows the mosquito flying near the taller sibling. Scene 6 shows the other sibling hitting the taller sibling on the face. The taller one asked the reason why the shorter one hit her, and the latter reasoned the mosquito.

23 | P a g e

In scene 9, the taller sibling was very angry and the two started to fight. Then with an animation, their mother appeared hodling the new Un-Scented Temox Multi-Insect Killer. Temox can be seen spraying by the mother and the mosquito instantly died. And the family continued to spend their time together.

CHAPTER 5: EVALUATION OF RESULTS

The group plans to execute different plans of advertising and selling propositions. Within the span of 5 years, the group plans to promote Temox in various ways. One of those is placing their mascot in their retail markets like Puregold Jr. wherein if someone takes a creative picture with the mascot, they can participate in contest that can award them with a prize of Temox products. Temox can engage more in charity events like fun runs and feeding programs for barangays in provinces. Continue advertisements for bus ads, mass display, and billboard advertisements. Temox can also promote their product with Scratch card promotions and win a brand new motorcycle.  After 5 years the group plans to execute Temox in tri-media advertisements like TV commercials, Radio commercials, Sponsor in events and gaming shows like Minute to win it, Eatbulaga, and Wowowin. Temox can also distribute their product nationwide and internationally. Temox can continue product development to consumers that can benefit their products. Temox can able to give raffle promos that can award them with automobiles and studio type condominiums.

24 | P a g e

REFERENCE: The Chemical Industry. (2013, July 21). Retrieved October 9, 2016, from http://www.essentialchemicalindustry.org/the-chemical-industry/the-chemical-industry.html http://npic.orst.edu/ingred/ptype/insecticide.html http://science.jrank.org/pages/3599/Insecticides-Benefits-insecticide-use.html http://conversionxl.com/9-things-to-know-about-influencing-purchasing-decisions/ http://2012books.lardbucket.org/books/marketing-principles-v1.0/s06-consumer-behavior-howpeople-m.html http://www.networx.com/article/non-toxic-insecticide-alternatives http://www.autodealermonthly.com/channel/dps-office/article/story/2008/02/the-three-factorsthat-affect-consumers-purchase-decisions.aspx http://2012books.lardbucket.org/books/marketing-principles-v1.0/s06-consumer-behavior-howpeople-m.html http://www.facebook.com/temox.ph https://www.alliedmarketresearch.com/mosquito-repellent-market

25 | P a g e