Positioning

After research in the area of positioning of Neutrogena Wave on other markets, we can to the conclusion that it will be mass market product in Russia as well.

If we consider positioning in the context of Emotional vs. Functional, taking into account that slogan of campaign is “even my friends noticed” in our advertising we will consider that Wave is more emotional product that functional one, because the customer should get an emotional satisfaction after using it.  

The company will give the following promise to the customer:

«The Neutrogena Wave® original vibrating power-cleanser is still shaking up the cleansing world with its gentle vibrations. It's guaranteed to leave skin feeling softer and smoother after just 1 use, and cleans 10x deeper to remove more oil, dirt, and makeup than traditional cleansing...»

Communication strategy

      According to emotional positioning of the product we will address the following message to the customer: “Even my friends noticed."

Further we would like to consider the demographic of the target customer. Our target customer are women from 16 to you years old living in urban area. According to the latest data available on the web-site of Rosstat, the quantity of target consumers is equal to 17 653 717. (Rosstat 2013). But quantity of potential customer is much higher, if we consider the category of women from 16 to 55 years old living in the urban area, and it is equal to 38 010 989. (Rosstat 2013)

Packaging

Regarding packaging we can say that we plan to remain the design which is used on other market. The only thing we would like to adjust is to translate the information of the pack into Russian. The internal content will remain the same as well and will consist of device, battery and pack of trial cleanser pads.

Pricing

We would like to provide you with the calculation on cost of the product.

COGs cleanser pads (4,5 USD)

Custom code: 3401209000

Import tax: 15%; VAT: 18%; CoO: USA

Duty= 4,5*0,15=0.675

VAT= (4,5+0,675)*0,18=0,93

CCP&D= 4,5*0,05=0,225

Total Net: 6,325 USD or 196 RUB

So we get 196 RUB as net price of the product, as we are targeting mass with the average price of the cleanser around 177 RUB, and highest price around 250 RUB  we came up we the sale price around 245 RUB for cleanser pads pack.

COGs device (8 USD)

Custom code: 8509800000

Import tax: 5%; VAT: 18%; CoO: China

Duty= 8*0,05=0.04

VAT= (8+0,04)*0,18=1,45

CCP&D= 8*0,05=0,4

Total Net: 9.89 USD or 300 RUB

*All calculation were made according to the custom legislation of Custom Union (Russia, Kazakhstan, Belarus)

I would like to say a few words about the business model of Neutrogena with regard to Wave. As we can see company sells devices very cheap and plans to earn money on cleanser pads. We model is very similar to Nespresso model, when the company sells machine almost at the net price and earns money on coffee capsules for machine.

Launch of the product

We plan to start the campaign for promotion in the end of summer, with launch of active sales in the November, so the consumers already will be familiar with our product closer to New Year holidays. We plan to launch the special New Year campaign, because Wave is a perfect present for young women. In February we will start another campaign devoted to the Women's Day. Moreover it is perfect due to the fact that the skin requires special care after winter time. So Wave device will be perfect present. After the product will be enough promoted we hope the consumers will consider Wave as a solution for skin care, it will let us to maintain the sales during Summer time, when a special care is required due to the hot weather.

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