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Ateneo de Manila University

John Gokongwei School of Management
Project Information Cataloging System (PICS)

Class Project Information and Cover Sheet

Name of Student/s: (Surname, First name, MI) School Year: 2013-2014 Sem: 2nd
Go, John Richmond, L Subject Code: Marketing 102
Lee, Ivan, G Course Name: Opportunity Seeking and
Lim, Genica, T Marketing Analysis
Nacpil, Yves, O Teacher: ENRICO C. OSI, CST, MBA, PGD
Te, Paolo Biondi, Q
(Information below this line and in this column
for use by Faculty &/or PICS staff only.)
Grade: C Call Number:
Project Title: Functional Area:
Marketing 102 Pass 1

Client: Comments: Pls see comments below.

Kids 5-14 years old
Parents 30-44 years old
Class: Broad C
Industry Category: Consumer Health

Abstract

This paper will talk about the Pharmaceutical industry and more specifically, our product which is the
Talahib Cream with Soursop extracts. It will be discussed throughout the whole paper the background of
the industry and how we plan on entering the market with specific characteristics that the market demands.
This paper will be presenting surveys that would support our positioning in entering the market. This paper
will be pointing out the different marketing strategies, including the opportunities and threats present in the
industry. This will also give an analysis of the company and its probable competitors as it enters into the
market as well as give the company different options and strategies in what to do and what to decide based
on its competitors. The totality of the paper will discuss the basics of entering an industy and all the
essential information regarding the industry and market will be presented.

Author(s)’ Recommended Key Words

Talahib , Soursop, Anti-bacterial, Antiseptic, Pharmaceutical, Consumer health, Dermatologist, Topical
Cream, Anti-fungal, Fucidin, Bactroban, Betadine
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Contents
Class Project Information and Cover Sheet.........................................................................1
I. Industry Background.....................................................................................................................3

A. Overview of the Industry.......................................................................................................3

1. Market Size............................................................................................................................3

2. Market Value..........................................................................................................................4

3. Market Growth Rate..............................................................................................................4

4. Relevant Market Trends.........................................................................................................5

B. Environmental Scanning - STEP analysis.............................................................................7

1. Socio-cultural demographics.................................................................................................7

2. Technological Information.....................................................................................................9

3. Economic.............................................................................................................................11

4. Political-legal.......................................................................................................................12

II. Competitor’s Analysis...............................................................................................................13

A. Identification of Key Competitors.......................................................................................13

B. SWOT ANALYSIS..............................................................................................................15

C. Attack and Avoid Matrix............................................................................................................17

III. Opportunity Analysis...............................................................................................................19

A. Idea Generation....................................................................................................................19

B. Identification of Opportunity...............................................................................................21

C. Rationale..............................................................................................................................27

D. Key Success Factors............................................................................................................28

IV. Target Market Selection............................................................................................................30

A. Identification of Target Market............................................................................................30

B. Analysis and Rationale for Choice......................................................................................38

Bibiliography..................................................................................................................................41
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I. Industry Background

A. Overview of the Industry

Show flow chart

1. Market Size

The 2009 data show that there 285 drug manufacturers scattered all over the
country with the bulk of manufacturers located in the National Capital Region.

Source: Philippine Institute for Development Studies, Philippine Pharmaceutical Report

p. 22
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2. Market Value

Consumer Health Industry Value in Billion Pesos (too broad, focus on cream)

The Philippine consumer health industry covers both medicinal which includes
the pharmaceuticals and non-medicinal products. Non-medicinal items cover nutritional
products and other non-drug formulations such as milk and baby care products.

3. Market Growth Rate

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Year on year market growth

5
4.5
4
3.5
3
Growth Rate
2.5
2
1.5
1
0.5
0
2008-09 2009-10 2010-11 2011-12 2012-13

The industry is continuously expanding despite the fluctuation in the yearly

growth rates. The level of growth is not consistent but the industry is actually able to
outgrow its previous year’s market value. (explain dip)

4. Relevant Market Trends

1. Heavy Importation

Source: Philippine Institute for Development Studies, Philippine Pharmaceutical Report

p. 52
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Foreign pharmaceutical industries hold patent rights over drug formulation which
prohibits other countries’ pharmaceutical companies to compete with these multinational
pharmaceuticals. Furthermore, the Philippines is lagging behind in terms of Research and
Development together with technological innovations which are vital factors in
competing against bigger pharmaceutical companies.

2. Shift to generic products

Recently developed legal matters have affected the consumer health industry
heavily. The cheaper medicines act have made it easier for companies to sell generic
drugs and has also facilitated the shift of consumers from branded medicinal products to
generic products.

What else?
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B. Environmental Scanning - STEP analysis (provide matrix w/ bullets)

1. Socio-cultural demographics

Source: Department of Health

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Source: National Statistics Office, 2011, http://www.census.gov.ph/content/three-

babies-born-every-minute-2009
(irrelevant data)

The number of live births in the country is increasing. More importantly, age
groups 5-9 and 10-14 hold the biggest part in the country’s population. These two age
groups require certain consumer health products because of their lifestyle and their day-
to-day activities. Minor accidents and injuries are very common for children in these age
groups which is why there is a need for first aid materials such as wound care products
and different types of topical materials. Based on the statistics for live birth, the aged 5-
14 dominated population will continue and hence, continued demand for first aid
products will be of importance.
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2. Technological Information
1. Patents

Source: Philippine Patent Analytics in the Pharmaceutical Field, p. 19,

http://itso.ph/files/1613/5209/8442/Pharmaceuticals.pdf
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Source: Philippine Patent Analytics in the Pharmaceutical Field, p. 25,

http://itso.ph/files/1613/5209/8442/Pharmaceuticals.pdf

2. Heavy advertising on social media and Television (irrelevant) (what modern

equipment used in production?)

According to Euromonitor’s (2011) Philippine Consumer Health study, the

growing number of social media profiles in the Philippines has been used by
pharmaceuticals, both local and foreign, to reach out to their consumers better and
facilitate a much closes interaction with them. Both Facebook and Twitter have
been used to try to communicate to approximately 40 million Filipino users.
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3. Economic

A. Philippine Household Income and Consumer Health Expenditure (irrelevant)

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4. Political-legal

1. Parallel drug implementation (irrelevant)

Source: Philippine Institute for Development Studies, Review of the Cheaper

Medicines Program of the Philippines, p. 16

Parallel drug implementation, as initiated by the Department of Health,

allows access to drugs from third-part countries which could provide cheaper
priced items compared to patent-holder countries like the United States. These
parallel imported drugs’ distribution is handled by the Department of Health and
reaches both retail and government establishments.

2. Cheaper Medicines Law

Republic act 9502, otherwise known as Universally Accessible Cheaper and

Quality Medicines Act, has been signed by the former President Gloria Macapagal
Arroyo in 2008. The law allowed companies to produce a generic counterpart for
branded products which hold patents and prevented patent holders to extend their
rights more than what was originally granted to them. This law has also
strengthened the existing parallel drug importation scheme and gave the president
the power to implement a price ceiling for drugs [1]. 1

What else?

1 Perez, C. 2010. Cheaper Medicine Act: The Challenge to Pharmaceutical Industry in

Exercising Economic Freedom.
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II. Competitor’s Analysis

A. Identification of Key Competitors

The antiseptic skin cream industry is dominated by 3 major competitors, namely:

Betadine, Bactroban, and Fucidin. The follwing tables illustrate the competitive

positioning, Market Shares/Volumes, and Marketing Strategies of the brands mentioned

above.

1. Competitive Positioning
COMPETITIVE POSITIONING
BRAND COMPETITIVE POSITION
Betadine (cream?) Market Leader
Bactroban Market Challenger
Fucidin Market Follower

2. Market Shares
MARKET SHARES
BRAND MARKET SHARE
Betadine .7
Bactroban .2 (estimated)
Fucidin .1(estimated)
Source for Market Shares and Sales: Euromonitor , Consumer Health in the Philippines
Only 3?

3. Marketing Strategies
ANTISEPTION SKIN CREAM PLAYERS

SALES
MARKE COMPETITIVE TARGET RELEVANT
BRAND LEVEL(millions
T SHARE POSITION MARKET PRODUCTS
)
-cream
-ointment
Betadine - mass -oral care
market -feminine
PHP 1959.65
.7 Market Leader -average care
(estimate)
market -shampoo
-bandage
-gel
-nasal
Bactroban .2 PHP 559.9 Market - mass -cream
(estimate) Challenger market -ointment
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-average -nasal
market -bandage

-cream
Fucidin - average
PHP 27.995 Market -ointment
.1 market
(estimate) Follower -gel
-bandage
*All specifications from company websites

MARKETING MIX (4P’S)

PRIC MARKETING
BRAND PRODUCT PLACE PROMOTION
E (5g) STRATEGY
-Diversified its
products in order
to capture a
larger portion of
-Commercials, the consumer
billboard, market
newspapers,
magazines, and -Concentrated on
other forms of marketing its
advertisments product
Betadine -for treating
-Drug effectively
minor
Php stores -Internet (well
wounds and
148 nationwide made company -Standard and
infections
-Hospitals website and reasonable price
-kills bacteria
social network) to lessen the
need for
-Partnerships discounts

-limited -Established the

discounts brand name’s
credibility by
tying up with
hospitals
worldwide
Bactroban -Contains 2% Php -Drug - widespread - Established
mupirocin 294 stores discounts brand name’s
-For treating nationwide responsibility by
minor -Hospitals - Internet tying up with
wounds and hospitals
infections - very limited worldwide
-Kills advertisements
bacteria - Focused on
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giving seasonal
discounts rather
- than marketing
its product

- Caters to the
higher end of the
market

-Aggressive
campaign
-for treating
-Internet programs to
minor
-Discounts market its
wounds and -Drug
Fucidin -Sponsorships product
different Php stores
-corporate (ex.Fucidin
kinds of 347 nationwide
social Teddy Bears of
infections - Hospitals
responsibility Love campaign)
-Kills
programs
bacteria
- Established
brand name’s
responsibility by
tying up with
hospitals
worldwide
*All specifications from company websites

B. SWOT ANALYSIS

STRENTHS, WEAKNESSES, OPPORTUNITIES, AND THREATS ANALYSIS

BRAND STRENGHTS WEAKNESSES OPPORTUNITIES THREATS
Betadine -Widely -Lack Corporate - Easier to distribute -A lot of new
distributed in Social new products and brands are
more than 90 Responsibility run the company in emerging in the
countries campaigns different locations market
worldwide since the consumers
-Lack event already trust the - The “go green”
-Easy access exposures brand name fad
and
availability in
drug stores and
hospitals
worldwide

- Well funded
research and
development
 Page 16 of 44

team

-Strong
advertising
campaign
worldwide

-Highly
credited and
well
established
brand

-Effective
product
diversification
which caters to
different target
markets

-Dominant
market share in
the industry
Bactroban -Easy access -Lack -Consumers prefer -Consumers prefer
and advertisements in trusted brands so it lower prices
availability in general would easier to because of the poor
drug stores and expand its products economy
hospitals - Need more -The new
worldwide product generation recall
diversification the brands that they
-Highly see in
credited and - Need to invest advertisements
well more in research
established and development
brand

Fucidin -Easy access -Expensive price -Still has a lot of - Consumers tend
and untapped global to trust the more
availability in -Lack markets popular brands
drug stores and advertisements in
hospitals the Philippines -Consumers prefer
worldwide lower prices
- Has not yet because of the poor
-Positive become a “house economy
feedback name” in the
 Page 17 of 44

worldwide Philippines, as
because of its supposed to
various CSR Betadine and
campaigns Bactroban

- Good credit
standing
*All specifications from company websites

C. Attack and Avoid Matrix

Pie Chart

Sales

0.1
Betadine
Bactroban
0.2
Fucidin

0.7
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ATTACK OR AVOID
COMPETITOR Year 1 Year 2 Year 3 REASONS
Betadine AVOID AVOID AVOID -Betadine is
the market
leader of the
antiseptic
cream
industry.
-Although we
fall under the
same price
range,
Betadine has
already
established
itself in the
antiseptic
industry as a
house brand. It
would be
impossible to
compete with
them.
Bactroban AVOID .0989% .1325% -Bactroban is a
market
competitor.
-Although
Bactroban has
already
established
itself as a
trusted brand
in the industry,
Bactroban’s
market share is
not as large as
Betadine. We
can start
attacking its
market share
during the
2ndyear.
Fucidin AVOID AVOID AVOID -Fucidin has a
different target
market
because of its
 Page 19 of 44

price.
Therefore,
Fucidin is an
indirect
competitor.
POSITION MARKET MARKET MARKET
LEADER COMPETITOR FOLLOWER
TOTAL In year 1? .0989% .1325%
MARKET Include other
SHARES smaller
ACQUIRED players

III. Opportunity Analysis

A. Idea Generation
As we come to an age where the range of skin products continue to widen its

scope month after month and year after year, creating an antiseptic skin cream for kids

would be a good idea. When it comes to skin creams primarily made for wounds,

bactroban and betadine would be the ones that customers would instantly look for.

However, for people with sensitive skin types, these products that people have been using

for years are known to cause irritation. Kids, or babies to be more precise are known have

much delicate and sensitive skin in their early months or years. If a parent was given the

chance to choose a antiseptic skin cream that would take out the risk of their kids being

irritated, this product would be a top option. This is also an era where people are starting

to go after products that come from nature. While other top antiseptic skin creams

continue to use chemicals as their main ingredient against wounds, the talahib skin cream

with guyabano extracts isn’t made up of strong chemicals that may hinder consumers

from buying one.

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Coming up with a skin cream made up of talahib and guyabano wasn’t just done

for the sake of creating something different. Talahib grass is known to be able to heal

wounds and soars, and it is abundant here in the Philippines. On the other hand,

Soursop’s (Guyabano) extracts are known to have tons of good effects when applied to

skin. The beauty of this product comes with its complexity in terms of its uses. The

product could be mainly categorized as an antiseptic skin cream since its primary use

would always be for healing wounds, but the talahib and soursop in this product are

actually more than just something to heal wounds. The soursop extracts have lots of skin

benefits such as it can serve as an anti-aging agent, it can fight off acne, and it is known

to treat eczema and other skin problems. We expect that these benefits would come into

play as consumers choose their antiseptic skin cream for their kids since having more

benefits and less risks for the skin would really be something nice to try.

(move this in product) The name of the group’s product would be Nature’s Healing

Cream. The name really fits the group’s product since the product is made in nature, and

no chemicals were placed to have its good effects. Consumers would be inclined to look

into this new brand since it’s not really a common thing nowadays to see anti-bacterial

creams made out of nature. Most anti-bacterial creams we have today are made of

chemical concentrations, which makes some people with sensitive skin to be irritated by

it. Our tagline woud be, “Got to believe in Talahib”. Given that this product is made of

talahib and soursop, some consumers would probably doubt the effectivity of the it is

uncommon for them to see such product. The group is aware that to penetrate the market,

there should be enough consumers who are willing enough to try the said product since

top brands such as bactroban and betadine have been trusted by many for years.
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B. Identification of Opportunity

Opportunities Threats

● More people starting to buy products ● Consumers have been loyal to their
 Page 22 of 44

for sensitive skin trusted antiseptic skin cream

● Skin products nowadays are becoming ● Competitiveness in the industry

more multi-dimensional

● Kids’ sensitive skin get irritated by

harsh ingredients/chemicals

● “Green Movement”

● “Buy Pinoy Movement”

● Globalization

a. Opportunities
I. More people starting to buy products for sensitive skin
From soap bars to facial products all the way to fabric softeners, more and more products

have extended the variations of their products to fit into their customer’s needs.

According to a study by the Centers for Disease Control and Prevention (National Public

Health Institute of the US), the prevalence of skin allergy double in between 1997-2011.

It also stated that 1 out of every 8 children have skin allergy due to this. Given this data,

it’s easy to understand why various products came up with the idea of creating a variation

of their product that was specialized for kids, or anyone with sensitive skin. We see this

ugly statistics as an opportunity for us to break into the antiseptic skin cream market. We

will use our skin cream that was made of natural products made specifically for kids,

since they’re more likely to have sensitive skin. As we enter the market, it wouldn’t really

be an option for our competitors such as bactroban and betadine to imitate what we

created since their main chemical ingredients are sort of harsh especially to kids or people

with skin prone to irritation.

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II. Skin Products nowadays are becoming more multi-dimensional

The products that we see in the market nowadays always have lots of good uses to

the skin. Some top facial cleansers also claim to be able to moisturize the skin and remove

dark spots and scars. We see soap bars that claim to be able to be able to whiten skin.

There are also deodorants that claim to whiten underarm skin after a certain amount of

time used. A study by the Journal of Personality and Social Psychology in 2012 claimed

that the people born 1982 (millennial group), can also be called the “Generation Me” since

they’re inclined to value money, image, and fame more than anything else. We could

somehow relate this study to the increase in variations of skin products coming up in this

modern world since this generation places so much value to one’s own appearance. In the

Philippines, the term “Selfie” generation has also been known to a lot of people as of late.

Having a “selfie” generation may not be a good way to look at modern society, but as a

start-up company, we could look at this as an opportunity to get into a market where

people would certainly consider buying our product. Our talahib cream with is soursop

extracts not only just heals wounds, but also has so much benefits to the skin since soursop

has a great amount of vitamin C in it which is really good for the skin. Given that our skin

product is rich in vitamin C, it could help rejuvenate the skin and promote skin cell

regeneration.

III. Kids’ sensitive skin get irritated by harsh ingredients/chemicals

While kids’ skin is known to be soft and delicate, they are also more sensitive as

compared to their adult counterparts. That’s the reason why we have baby soap, baby

lotion, baby powders and so much more skin products made for babies. According to

Sherrie Strausfogel of betternutrition.com, “Harsh chemicals are no way to treat sensitive

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skin.” The group believes that children’s skin shouldn’t in any way be exposed to

chemicals even in times when it has attained a wound of any kind. This reality with

regards to the state of every kids’ skin sort of serves as an opportunity for us to enter the

market since we could be highly recommended by parents for their kids, or even doctors

for their patients.

IV. “Buy Pinoy Movement”

“Buy Pinoy Movement” is a foundation supported by many big organizations

such as the Department of Trade and Industry (DTI), Federation of Filipino-Chinese

Chamber of Commerce and Industry, Inc. (FFCCCII), and the Philippine Exporters

Confederation, Inc. (Philexport). One of the taglines of this movement is “Buy Pinoy and

Save Jobs”. This movement aims to promote the production of world class Filipino

products for local buyers. One of the goals of this movement is to increase the level of

awareness the other countries have with regards the global competitiveness of Pinoy

products in terms of design quality and price. Having these types of sentiments in our

modern setting makes it much easier for us to break into the market, for movements such

as this one would indeed support our product since our product is Pinoy made, and its

ingredients are abundant in the Philippines. Once this product enters into the market, the

group would make it a point for people to know that this is a Filipino made product, and

its main ingredients, which are talahib and guyabano were both supplied within the

Philippines.

V. “Green Movement” (?)

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The “Green Movement’ is a political ideology that aims to create an ecologically

sustainable society rooted in environmentalism, social justice and grassroots democracy.

Countless companies in our modern world are clearly starting to align with the ideas of

“Green Movement”, as they try to decrease the environmental footprint of the products

they produce. Kelly Spors who writes under the category “green business” from

smallbiztrends.com even claimed that “Business, not government, is leading the green

movement” That statement of his just shows how much of an emphasis businesses are

putting on conserving the environment. In his article, he also pointed out that the green

movement also made great benefits for small and big businesses such as “good

publicity”, “bottom-line savings” and “happy people”. His points were as clear as it

could get, it’s easy to see that everybody wins in this “green movement” that businesses

are doing. As more and more people become aware of saving the environment, our group

could use that as an opportunity to break into the market since the talahib skin cream with

soursop extracts has a low environmental footprint. One of our main ingredients, which is

talahib is basically just a raw material, and soursop is indeed abundant in the Philippines.

Our group would make it a point for people to be aware that our product has a very low

environmental footprint, and we do support the “Green Movement”.

VI. Globalization (?)

Globalization is being used by so many companies today to broaden its market.

It may also signify how much of a force one company is when it is able to extend itself at

a global scale. Over the past 50 years, globalization has indeed accelerated due to factors

such as increase in international trade, growth of multi-national companies and the

 Page 26 of 44

feasibility of going global. With the technology we have in this age, it’s become much

easier to go global. Our group believes that going global would give us the opportunity to

have foreigners into target market, and in a way, make this brand more known in the

international scene.

b. Threats

I. Consumers have been loyal to their trusted antiseptic skin cream

For several years, people have used well-known products such as bactroban, betadine and

fucidin for their wound. When it comes to products such as these, some consumer might

not consider factors such as price, ingredient, other benefits, as they will only focus on its

effectivity and how it has worked for them in the past. This would continuously be a

cause for concern for our group since we are aware that we are new in this industry, and it

might take some time for some people to start considering in buying our product.

II. Competitiveness in the Industry

Even if there aren’t a lot of players in this industry, we still expect the

competition level to be at a very high level. We are aware of the top brands such as

betadine, bactroban and fucidin, but we should also be aware that there is also a “generic”

type of bactroban that has been being sold in drugstores such as TGP (The Generics

Pharmacy), and the bactroban that they sell is way below the branded types of antiseptic

skin creams. If we look into the prices of the branded ones at 5 grams, bactroban is at Php

294, betadine is at Php 148, and fucidin is at Php 347. We can see the big disparity in its
 Page 27 of 44

prices, and that tells us that at whatever price we set-up our product, we will be

competing with another product in terms of price.

C. Rationale

The players in the industry that we’re about to enter have consumers that have

trusted their antiseptic skin cream for several years, and probably for generations. The

world is changing, and people’s perceptions about things have changed over time, and

some of the points given in the opportunities section have shown that reality. It’s also

important to point out that that kids nowadays have been proven to be more prone to

skin allergies. Dermatologists have recently been promoting organic facial products

since these don’t contain harsh chemicals that may cause skin irritations for certain kinds

of skin. Our products are made up of natural ingredients, and promises to be gentle on

the skin.

Weighing in the opportunities and the threats of our product breaking in the

market, the opportunities definitely outweigh whatever threats we have found. As we

stated earlier, the world is changing, and people are becoming more aware of the situation

around us. They are being more aware of issues such as global warming, and how huge

environmental footprints make such as impact on it. More and more organizations such as

the DTI (Department of Trade and Industry) have been promoting Filipino products, and

they also make it a point for the people to know that in buying Filipino made products,

we are helping out our countrymen when it comes to their livelihood. Lastly, we all know

parents would do anything for their kids, and if there’s a product antiseptic skin cream out

there that promises to work without the risk of skin irritation for people with sensitive

skin, then there’s not much reason for a parent not to give our product a shot.
 Page 28 of 44

D. Key Success Factors

1. Establish brand differentiation

It’s given that our product and our competitors’ products all have a primary

purpose of healing wounds. It’s going to be imperative for us to be different, but at the

same time keep the level of effectivity at par, if not better than other top antiseptic skin

creams. When it comes to brand differentiation, we don’t use any harsh chemicals that

may irritate skin. The main difference of our product as opposed to competitors’ products

is that our skin cream is made for kids and other people with sensitive skin. We are using

raw materials such as talahib grass, as a main ingredient and this is something that we

hope people would appreciate.

2. Establish Brand Loyalty

The loyalty that several consumers have on their respective antiseptic skin

creams would be a challenge for us to break. We are confident that our product is

something that can indeed compete with the big guns, but for us to be able to get there,

they must try our product and see it for themselves. The “Got to believe in talahib”

tagline is something that sort of addresses this key success factor since we would want

consumers to at least try out our product and see how it works even without the

chemicals.

3. Additional Skin Benefits

Our skin cream has guyabano extracts in it, and these extracts are known to

have a lot of good benefits on the skin when applied. It is rich in vitamin C, so it will

promote skin cell regeneration. It is known to heal eczema and other skin problems.
 Page 29 of 44

IV. Target Market Selection (show matrix: age, gender, social classes, etc)

A. Identification of Target Market

- Economic Level (Social class): broad class C

- we chose this because class C1 and class C2 compose a big part of the

population in NCR. People from these sub-classes are also capable of buying

our product based on their general income. The upperclass is too small and their

preferences are inclined towards foreign brands.

- Psychological makeup (kids): playful, outgoing, sporty, athletic, rowdy, easily appealed

by smell and color, low pain threshold.

- in the survey results we see that the kids would want the product with a scent.

*based on group survey

with scent

26.00%

74.00%

Out of the 74% who wanted the product to have a scent, most of them ranked the

Rose scent as their top choice.

 Page 30 of 44

*based on group survey

- these factors are evident in kids who would probably need the product
 Page 31 of 44

Rose Lemongrass Sampaguita

28.38% 25.68%

14.86%
20.27%
10.81%

Psychological makeup (parents): pro-organic, green, practical, local-supporter, open (in

 Page 32 of 44

terms of trying new products), scent-conscious, color-conscious.

- Our product will be very appealing to parents with these characteristics.

Source: http://www.indexmundi.com/philippines/age_structure.html

Age:

- kids: 5 to 14 years old

- parents: 30 to 44 years old

- According to indexmundi.com, 34% of the Philippine population is composed of

children from ages 0 to 14 years old, (male 18,339,398/female 17,607,472) and 36.8%

of the population is composed of people aging from 25 to 54 years old. We chose these

age groups because our market would be bigger and these people are most applicable

for the uses and characteristics of our product. The parents from the 25-54 age group

would also be applicable since they compose most the adult population.
 Page 33 of 44

Sex: (narrative?)
 Page 34 of 44

male female
gender (based on survey)

39.00%
61.00%

kids: Both Male and Female

 Page 35 of 44

- parents: Both Male and Female

male
gender (based on survey)

21.00%

79.00%

- we chose both genders for both groups because we believe that our product is not

gender-dependent.

- Income level (parents) (monthly): 15,000 pesos to 49,000 pesos

- Habits (kids): outdoor and indoor playing, general tactile activities, sports, any kind of

physical activity or physically-related hobby.

- Habits (parents): practical-buying, buying for children, promoting environment-friendly

products, promoting local products, supporting children’s physical endeavors.

- Work (parents): employees, business owners, middle-management, health-care,

dermatologist, generally middle class employees/workers.

- Location: NCR (Metro Manila) (refer to the pie graph)

 Page 36 of 44

(narrative, not bullets)

Source: Enrico C. Osi, Knowing Your Target Market ppt.

no*based
pain during application
on group survey

39.33% 34.67%

5.33%
20.67%
 Page 37 of 44

AB upper class NCRC1 upper middle class

5.00%
6.00%
22.00%

15.00%

52.00%

- The location would be suitable since most of our target customers are in this location

and people from this location could easily access our product due to the infrastructures

and drugstores that are evident in the location. The economic background of the location

is also suitable for the general standards of buying our product.

Results in the surveys also showed that kids would want a product that would

make wounds heal faster and a product that wouldn’t be painful when applied to the

wound. The results can be seen in the chart below. (Please note that the answers for this

question in the survey can be more than one)

 Page 38 of 44

Buying Patterns:

Percentage of Household Cash Spending on Drugs to Total Household Spending for

Medical Care, in Income Deciles, 2006 (Refer to the income level chart in Industry
Backgrond, Environmental Scanning)

Source: Family Income and Expenditures Survey 2006, as cited by Banzon (2010).
 Page 39 of 44

B. Analysis and Rationale for Choice

70

60

50

40

30

20

10

0
Betadine
Agua Oxigenada
Fucidin Cream
Betadine Cream
Bactroban Cream
Others

1. Identified Consumer Segments

Type of Consumer Features Needed by the Segment

kids scented, no harsh chemicals, colorful

adults with sensitive skin no chemicals that may irritate skin, no pain upon application

green consumers organic and environment-friendly (low environmental footprint)

local product supporters product with raw materials found in the Philippines, locally-
made product

2. Market Needs Being Addressed

 Page 40 of 44

Looking at this survey the top products used by consumers nowadays, such as

Betadine, Agua Oxigenada and Bactroban are all using chemicals as their main ingredient

for their product to be effective. There’s no question that these products are effective in

healing wounds, but it is also known that harsh chemicals such as the ones used in these

products may result to skin irritation, redness, dryness and other more for kids, or any

person with sensitive skin. The group’s product would be something beneficial for kids

who are more prone to skin irritation. Various products in this modern era are coming up

with their own set of goods for people with sensitive skin, and we believe that consumers

in the antiseptic skin cream industry would welcome something made primarily for

people with sensitive skin.

3. Usage Habits

Based on the survey we can see that the application of medicine/antiseptic is made

by the kid or the mother mostly. (Please note that the answers for this question in the

survey can be more than one)

 Page 41 of 44

12.82%
14.74%

30.13%
33.97%

8.33%

*based on Group Survey

Given that the kids and the mothers are the ones who apply the antiseptic on the

wound, our group should make it a point to make our product in accordance to the

preferences and demands of the kids and mothers. Our cream should attend to the

characteristics that would appeal to both the kids and mothers. These preferences can be

seen in the results of the group survey.

(reduce size of piue chart, include frequency table at side)

 Page 42 of 44

REFERENCES: (remove dot, indent on 2nd -4th par)

Bibiliography
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and Bark." Health and Beauty Pages. N.p., n.d. Web. 2 Jan. 2014.

<http://www.healthandbeautypages.com/health-benefits-of-soursop-guyabano/>.

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<http://www.doh.gov.ph/kp/statistics/demography1.html>
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2013. Web. 6 Jan 2013. <http://www.euromonitor.com/consumer-health-in-the-

philippines/report>

 Indexmundi.com. "Philippines Age Structure." Www.indexmundi.com. N.p., 6

Dec. 2013. Web. 5 Jan. 2013.

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 NSO. "The Age and Sex Structure of the Philippine Population: (Facts from the

2010 Census )." Http://www.census.gov.ph/. N.p., 30 Aug. 2012. Web. 5 Jan.

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population-facts-2010-census>.

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Web. 5 Jan 2013. <http://www.census.gov.ph/content/three-babies-born-every-

minute-2009>
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S2011-07_tab2C.pdf>
 Page 43 of 44

 Philippine Institute for Development Studies. “A Profile of the Philippine

Pharmaceutical Sector.” Pids.gov.ph. May 2011. Web. 5 Jan 2013.

<http://dirp4.pids.gov.ph/ris/dps/pidsdps1111.pdf>
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<http://www.dbm.gov.ph/wp-content/OPCCB/fpb/b_DOH-CheaperMedicines/i-

Cheaper%20Medicines%20Program%20Review.pdf>

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 Sentry, Susan. "Discovery Health." Discovery Fit and Health. N.p., n.d. Web. 2

Jan. 2014. <http://health.howstuffworks.com/skin-

care/information/nutrition/vitamin-c-benefit-skin.htm>.

 Spors, Kelly. "Business, Not Government, is Leading the Green Movement."

Small Business Trends. N.p., n.d. Web. 3 Jan. 2014.

<http://smallbiztrends.com/2012/07/business-not-government-leading-green-

movement.html>.

 Strausfogel, Sherrie. "Better Nutrition Magazine :: Supplements, Nutrition,

Recipes, Personal Care :: Personal Care :: Natural Beauty." Better Nutrition

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Natural Beauty. N.p., n.d. Web. 2 Jan. 2014.

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products/personalcare/naturalbeauty/1100
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 Wilson, Jacque. "Childhood food, skin allergies on the rise." The Chart RSS. N.p.,

n.d. Web. 3 Jan. 2014. <http://thechart.blogs.cnn.com/2013/05/02/childhood-food-

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