1. Ivy Mattingly Marketing Principles 310/6382/Fall semester 1
Michael Kors Holdings
Ivy Mattingly
Marketing Principles 310/6382/Fall semester 1

2. Table of Contents Part A: Current Market Situation Market Description
A.1.a. Segmentation Slide 5
A.1.b. Marketing Targeting Strategy Slide 6
A.1.c. Value Proposition Slide 7
A.1.d. Factors influencing Customer Behavior Slide 8
A.1.e. Buyer Decision Process Slide 9
2. Product Review
A.2.a. Levels of Product Slide 10-12
A.2.b. Type of Product Slide 13
A.2.c. Product Lifecycle Slide 14
A.2.d. Benefits/Feature Analysis Slide 15
A.2.e. Differentiation Slide 16
A.2.f. Branding Strategy Slide 17

3. Table of Contents Continued
3. Competitive Review
A.3.a. Competitive Analysis Slide 18-20
A.3.b. Market Share Slide 21
A.3.c. Competitive Position and Roles Slide 22-23
A.3.d. Strategic Sweet Spot Slide 24
A.3.e. Positioning Slide 25
4. Distribution Review
A.4.a. Current Supply Chain Members and Roles Slide 26
A.4.b. Value-Delivery Network Analysis Slide 27
A.4.c. Current Type of Distribution Strategy Slide 28
Part B: Strengths, Weaknesses, Opportunities, and Threats Analysis (SWOT) 1. Microenvironments Slide 30
2. Macroenvironments Slide 31

4. Current marketing situation
Section A
Current marketing situation

5. A. 1.a. Market Description Description of Market Segments
The product of Michael Kors Handbags is mass marketed therefore in this presentation we will not provide a description of market segments. Due to the fact that Handbags are used by a strong majority of the consumer population the product is mass marketed to consumers.

6. A.1.b. Market Description Current Marketing Targeting Strategy
Undifferentiated
Since Michael Kors handbags are not a common need among a wide variety of individuals of a variety of different backgrounds, gender, age, etc. it would be difficult to establish a target market strategy since toilet paper is so streamlined it would be difficult to offer variations of the product for market opportunities.

7. A.1.c. Market Description Value Proposition
More for the Same
Comparable quality at a lower price
Softness and strength
Their value proposition is “so good you can less”
Price is important but price is not the only factor

8. A.1.d. Market Description Factors on influencing consumer behavior
Social (Family)
The “more for less” saves families with multiple family members the ability to save money
The “Charmin Bears” represent the middle class American family
Age and Life Cycle
Charmin is targeting families especially with young children
The Charmin Bears represent a variety of ages and different needs of toilet paper
Economic Situation
The ability to afford more than bottom line product
Charmin now offers “Basic” at an more affordable price

9. A.1.e. Market Description Buyer Decision Process
Habitual Buying Behavior
Consumer has very low involvement in in the buying process of toilet paper
Consumer is not making a risky buy, toilet paper is a low cost buy
Consumer has no major differences in brand to compare in the product of toilet paper thus causing very little product research to the consumer
The buying of toilet paper becomes a “habit” for the consumer (Always reaching for the same brand of toilet paper); “I have always bought that brand” mentality
Charmin has to use price and product promotions to promote buying: price point (the addition of the “basic” low line toilet paper, a variety of brands not offered by other competitors

10. A.2.a. Product Review Levels of Product
Core Customer Level
Comfort
Quality of Life
Cleanliness
Security

11. A. 2.a Product Review Levels of Product
Actual Product
Quality Level (Charmin emphasizes soft and strong)
Brand Name (majority of consumers know the Charmin brand)
Variations or product (Charmin offers a variety of types of toilet paper including Ultra Strong, Ultra Soft, Sensitive)
Design (Charmin focuses on toilet paper that is safe on septic tanks and plumbing)

12. A.2.a. Product Review Levels of Product
Augmented Product
Customer Service (Charmin offers a website and a mobile app giving customers answers to questions, also the mobile app offers consumers the ability to located the nearest clean public restrooms)
Travel Assurances (Charmin offers a mobile app that has clean bathroom locator that allows consumer to find the closet clean public restroom while out in the community or on travels)

13. A.2.b. Product Review Type of Product
Convenience Product
Toilet paper is a frequent purchase for the consumer
Toilet paper has little planning on purchasing with the consumer; usually on the consumers “grocery list” when needed
Charmin is a low cost product
Charmin is widespread distributed in the United States
Charmin is found in multiple locations, e.g. Walmart, Kmart, groceries stores, pharmacies, gas stations
Charmin uses mass promotion of the television commercials, online ads and website, and a mobile app

14. A.2.c. Product Review Product Lifecycle
Maturity
Sales: Charmin sales are at a peak, in 2013 Charmin was the best selling toilet paper with billion dollars in sales
Cost: Charmin is a low cost to the consumer, Charmin added the “Basic” toilet paper a lower cost option to their line
Profit: Charmin has a high profit of toilet paper sales (2.3 billion in sales in 2013)
Competitors: Charmin has a variety of competitors offering toilet paper brands however the market sees very little new brands
Advertising: Charmin stresses the brand differences (variety of options) along with the benefits of using Charmin “so good you can use less”; they stress saving money to the consumer; market to families using the “Charmin Bears”

15. A.2.d. Product Review Benefits/Features Analysis
Feature Benefit
Soft toilet paper Comfort to consumer
Cleans so well you can use Saves money for consumer
up to 4 times less
Affordably priced Save consumer money
Only toilet paper with Comfort and less rash/breakout to consumer
soothing lotion and a touch
of Aloe and Vitamin E
3 times stronger Consumer uses less and saves money

16. A. 3.e. Product Review Differentiation
Product Differentiation
Charmin uses product differentiation to market their toilet paper to consumers by showing differences in their products. They implement this through the types of toilet paper they offer for example UltraStrong, UtlraSoft, Sensitive, etc. They utilize the thought of soft yet strong to emphasize comfort and saving consumers money while still getting a quality product. Lastly, implementing their mobile app gives them another option not provided by similar product brands.

17. A.2.f. Product Review Branding Strategy
Charmin is a national brand starting in 1928 and was originally manufactured by Hoberg Paper Company. In 1957, Procter & Gamble acquired Charmin Paper Company.
Charmin toilet paper and Procter & Gamble have a variety of products such as diapers, wipes, personal care items, etc.
The Charmin toilet paper packaging clearly has the Pocter & Gamble label presented on all packages. Along with the Charmin bears that represent the average middle class family in which to target too.

18. A.3.a. Competitive Review Competitive Analysis
Angel Soft
Price: their prices are lower than Charmin
Features: Pretty toilet paper, softness, lasting strength, “price that won’t break the bank”, 2 layer, safe on sewer and septic tank
Variations in product offered: 2- Classic White and Angel Soft with Pretty Prints
Mobile App offered: No mobile app

19. A.3.a. Competitive Review Competitive Analysis
Cottonelle
Price: lower cost than Charmin
Features: Strong, absorbent ripples, comfort, safe on plumbing
Variations of product offered: 3-Clean Care, Ultra Care Comfort, Gentle Care
Mobile App offered: no

20. A.3.a. Competitive Review Competitive Analysis
Quilted Northern
Price: same as Charmin
Features: Softness, strength, 3 layers, silky feel
Variations of product offered: 2-Ultra Strong and Soft, Ultra Plush
Mobile App offered: no

21. A.3.b. Competitive Review Market Share
Private Label %
Angel Soft %
Charmin Ultrasoft %
Scott %
Charmin UltraStrong %
Quilted Northern Soft & Strong 8.1%
Cottonelle Clean Care 5.1%
Charmin Basic %
Cottonelle Ultra %
Quilted Northern Ultra Plush 3%

22. A.3.c. Competitive Review Competitive Positions and Roles
The toilet paper market’s leader is currently Charmin with 25.5% shares of the market giving Charmin a 3 point lead in the market. Quilted Northern is a close second in the market with % of the market shares and then Cottonelle comes in at third with 12.7% of the market sales.
To promote the Charmin brand the company has been showing up at local state fairs to use “Charminzed” bathrooms that emphasize a clean public restroom stocked with Charmin toilet paper products. The introduction of the “Charmin Bear” and the Cha-Cha-Cha Charmin dance gives Charmin a playful and family oriented. Quilted Northern uses a more caring approach with the slogan, “It’s Quilted because We Care.” Cottonelle is using a puppy to promote their product emphasizing, “We look out for your family,” that like a puppy your family needs to be taken care of.

23. A.3.c. Competitive Review Competitive Positions and Roles
Due to the fact that there is not a whole lot that can separates one brand of toilet paper from another and for the consumer toilet paper is a common household need (they are picking because of price and not brand loyalty) companies are going to great lengths to get their products and positions across.
The vulnerability to each of these brands is the cost of the product. If a brand comes across with a low cost and quality product the consumer would then go with that product due to the fact that there is very low consumer involvement and brand loyalty.

24. A.3.d. Competitive Review Strategic Sweet Spot
Charmin sweet spot is the offering of their mobile app in which consumers can locate the nearest clean public bathroom along with learning about Charmin products and the ability to leave comments and reviews on products offered.
Charmin saw that consumers had no reason to have an interest/relationship with the Charmin brand so by implementing the mobile app that allows consumers to find clean public restrooms they are now creating a relationship with the consumers.

25. A.3.e. Competitive Review Positioning
Due to the fact that there is not a whole lot that can separates one brand of toilet paper from another and for the consumer toilet paper is a common household need (they are picking because of price and not brand loyalty) Charmin is going to great lengths to get their products and positions across.
Charmin is using its “Basic” line to emphasize a lower price toilet paper while their Ultra Strong and Soft lines are targeting consumers to save by using less quality toilet paper. The use of the mobile app is creating a relationship of Charmin and consumers to create a brand loyalty.

26. A.4.a. Distribution Review Current Supply Chain Members and Roles
Channel 1: Direct Marketing Channel-Producer  Consumer
This is done through Charmin’s online website and mobile app which lets consumer directly buy their products through the website or app
Chanel 2: Indirect Marketing Channel-Producer  Retailer  Consumer
This is done through Charmin distributing products to retail stores such as but not limited to Walmart, Kmart, Groceries stores, pharmacies and gas stations and then the consumer buying the product from those retail stores.

27. A.4.b. Distribution Review Value Delivery Network Analysis
Vertical Marketing System (VMS)
Charmin uses a variety of systems that work in a unified manner to get the product to the consumer using the vertical marketing system. Charmin distributes directly to their consumers via online and mobile apps. They have contracts with retailers such as but not limited to Walmart, Kmart, groceries etc. that get the Charmin product to the consumer. This is the same with the idea with Wholesalers like Costco or BJs wholesale companies that provide the Charmin product to their consumers. By using the VMS system Charmin is able to provide their product to their target population (mass marketing) by using nationwide retailers and wholesale along with Charmin’s website and mobile app.

28. A.4.c. Distribution Review Current Type of Distribution Strategy
Intensive Distribution
MK stocks the as many of their products in as many outlets as possible
Due to the convenience of a needed household product Charmin uses as many retailers, wholesalers etc. to get their product to the consumer-convenient to consumer
Due to the nature that the product has very little difference from one brand to another Charmin utilizes as many outlets to offer their product so consumers can recognize their brand-maximize Charmin exposure

29. Part B
SWOT Analysis

30. B.1. SWOT Microenvironments
Strengths
Product Innovation- online website and mobile apps
Offers multiple products-variety of products offered (Crossbodies, Totes, Shoulder Bags )
Strong Brand
Weaknesses
Increased promotional spending to keep healthy sales
Customer Concentration-due to mass marketing a variety of customers to target too

31. B.2. SWOT Macroenvironments
Opportunities
Implementing a stronger presence in the media via socially and in print
Selling directly to consumers-online and mobile apps
Host promotional events, ie; fashion shows
Threats
Limited amount of distribution centers
Decrease in consumer spending
Increase cost of materials

32. Bibliography
Charmin Marketing Strategies. (April 2011). Retrieved June 20, 2014, from Strategies html
Johnson, Lauren. (March 14, 2012). Charmin Drives Sales Through Interactive Ad Campaign. Retrieved June 20, 2014, from
Proctor & Gamble. (2014) Retrieved June 20, 2014, fromhttp://
Proctor & Gamble Fiscal Report (2012). Retrieved June 20, 2014, from
Say Yes to the Toilet Paper Dress. (June 12, 2014). Retrieved June 20, 2014, from yes-to-the-toilet-paper-dress/?KEYWORDS=Charmin
Strategic Message Planner. (May 15, 2013). Retrieved June 20, 2014, from qu/2013/05/15/strategic-message-planner/
The Proctor & Gamble Company. (2014). Retrieved June 20, 2014, from
The Proctor & Gamble Company. (2014). Retrieved June 20, 2014, from profile.The_Procter__Gamble_Company.89fae93ad9ab54d7.html