Splash is practicing the idea of lifelong creativity and innovation. It always produced a product that was easy to produce, fast moving; since their always banked on meagre resources keeping the cash cycle tight.
All of the Splash's products appealed to philipino people's imagination by offering them unlimited possibilities. Splash often introduced new product variation under their existing, trusted brands in a bid to renew consumer interest. They used above the line and below the line advertising. Their advertising campaigns in major media were supported by mall tours, school tours and distribution of free samples.Their products were distributed through a variety of retail outlets, ranging from department stores and supermarkets to pharmacies.
In addition, there were approximately 400,000 smaller outlets such as corner shops and market stalls across the country. These outlets were known as "Sari-Saris". They typically sold small volumes, but taken in sum they represented a significant share of the market. Sari-saris generally carried lower-priced products, such as bath soaps and hair gels, and avoided premium products, such as hair-coloring agents.Core Identity* Innovative: The Splash brand has always stayed in touch with current trends through continuous product development and innovative contributions to the Splash branding.* Creative: Stimulating learning through creativity and also the creative development and launch of new products.
* Safe: Splash continuously reviews their environmental and safety procedures to ensure that their minimum standard is at least equal to the most stringent in the industry. If it was thought that a particular product would satisfy a consumer need, the researchers developed a prototype, which then underwent rigorous clinical testing by dermatologists to ensure safety, quality and efficacy. The researchers later fine-tuned the product and conducted further testing to substantiate its claims.* High Quality: There is an emphasis on maintaining the highest standards of quality in three main areas: Technical (Beauty products materials must be stable, consistent and safe), Consumer (Beauty products and materials must provide unlimited opportunities and permit people to emotionally feel it in different ways) and Development (Beauty materials must stimulate and must be effective to the needs to people and should develop people's imagination, creativity and intelligence).* Value for Money: Value for money was a crucial buying criterion with Splash set of consumers. For commodity products, such as bath soap, price was the single most important factor.
When it came to more specialized products, such as skin care and hair care, consumers would pay a little more for their favorite brands; however, prices still had to be reasonable and high efficacy was expected. This criterion was maintained by Splash in realizing its new products to the market.* Downsizing product size: Splash downsized its products for its masa consumers and also particularly among the D and E segments. Sachets were usually available from sari-saris, where D and E consumers preferred to shop. Splash had launched sachet packages, but considered further sachet development to be of paramount importance for the future.
This was done to retain price sensitive consumers.* Loyalty: Consumer loyalty to favoured products and brands was very high. Consumers subscribed to the concept of "hiyang," which had a variety of meanings but could be understood as "I used it and it worked for me." Once a consumer had ascribed "hiyang" to a certain brand, she was likely to remain loyal. This was an important strategy for Splash if it had to fight with competitors, who had deep pockets.
Extended Identity* Product ScopeSplash has a wide range of products covering facial care, Exfoliants, Whitening Lotions, Natural soaps and hair care. Most of the products are under the Splash brand while there are also sub-brands like Bio-Link and Maxipeel.* Company NameThe word 'Splash' is immediately recognizable as a company trademark. The Hortalezas briefly renamed their company Hortaleza Cosmetics in 1986, before settling on Splash Cosmetics in 1987.
The Splash name was inspired by the popular movie that bore the same title. It was chosen because it was easy to recall and carried connotations of being cool and refreshing.Value Proposition* Functional BenefitsInnovative and high quality beauty products that are safe for people to use with and at the same time are effective to people who use it.* Emotional BenefitsUsing Splash products generates feelings of friendliness and excitement* Self-expressive Benefits"I used it and it worked for me."Marketing Strategy:Splash employed a multi-brand strategy, which was believed to be the most effective way of covering such a broad industry and reaching tens of millions of consumers. Different brands and their respective products might have similar or overlapping effects, and a single product might actually be sold in more than one category; however, only one brand was chosen as the "lead brand" in each product category.
The company allocated all of its marketing and branding support for a given category to the corresponding lead brand. For example, both the Extraderm and Maxi-Peel products were exfoliants, but Maxi-Peel had emerged as the lead brand in the exfoliant category while Extraderm was being repositioned as a broader beauty line. Splash resorted to "guerilla marketing." Splash developed below-the-line marketing materials and promotional activities to interact with consumers. Splash sent representatives to school fairs, prom nights and community activities, set up in-store promotions and distributed samples to households.Branding Strategies to be employed by Splash to maintain its success in the industry:1) Brand Essence: Brand essence is everything a brand stands for in the heart of the customer.
It is the abstraction that audiences take away after experiencing the sum of brand impressions-from both the marketing and personal experience with the product, transaction process and service. There is the inclination for marketers to perceive the essence of a given brand from their own perspective rather than from the customer's perspective. It derides the temptation for marketers trying to define the brand essence as what they want it to be, rather than what it actually is among customers. What causes some products like Coca-Cola, Campbell soups to be deep brands and to profit from a price premium while other colas, candies, and soups do not? The companies have high brand equity because they have a positive image, established brand, and reputable product.
2) Brand Intrinsic Value: The intrinsic value a brand has in the market place is developed over a period through superior sustainable business strategies. For Splash new innovative products, its intrinsic value can be developed by extensive market research before the product enters the growth stage and then allowing it move slow in the growth stage so as to earn a premium and long product cycle.3) Financial - One way to measure brand equity for splash products is to determine the price premium that a brand commands over a generic product. For example, if consumers are willing to pay P100 more for a branded hair care product over the same unbranded hair care product, this premium provides important information about the value of the brand. However, expenses such as promotional costs must be taken into account when using this method to measure brand equity.4) Brand extensions - A successful brand can be used as a platform to launch related products.
The benefits of brand extensions are the leveraging of existing brand awareness thus reducing advertising expenditures, and a lower risk from the perspective of the consumer. Furthermore, appropriate brand extensions can enhance the core brand. However, the value of brand extensions is more difficult to quantify than are direct financial measures of brand equity.5) Intangible: The intangible value associated with a product that cannot be accounted for by price or features.
For e.g. Nike has created many intangible benefits for their athletic products by associating them with star athletes. Children and adults want to wear Nike's products to feel some association with these star athletes ("be like Mike" - for Michael Jordan). It is not the physical features that drive demand for their products, but the marketing image that has been created.
Buyers are willing to pay extremely high price premiums over lesser-known brands that may offer the same, or better, product quality and features.6) Relative profitability: The relative profitability of customers not only helps promote retention of the best customers but also substantially improves marketing.In all, for the Splash brand to be strong it must accomplish two things over time: retain current customers and attract new ones. To the extent Splash brand does these things well, it shall grow stronger versus competition, and delivers more profits to its owners.
2) Develop a response to each of the current and specific competitive threats: a multinational challenging Maxi-Peel, a host of domestic companies imitating Bio-Link, and various producers flooding the market with a variety of low-cost products.Response to Multinational Challenge to Maxi-PeelCoherenceThe key promise of Splash in case of Maxi-Peel is the stimulation of creativity, innovative, beautiful and safe product. This is what Splash is selling to the customer and also the brand promises when one purchases its products.ConsistencySplash should take a long term view in their brand building, from opening brand stores in Manila to worldwide.
Splash should try to recreates the "Imagination and Innovation" metaphor and sensorial experience in these locations to the experience of building and creating models from Splash's successful brands. To reinforce brand communication consistency, Splash should create a new entity in the form of a Global Brand PR Team based in Philippines.CredibilitySplash brand and its products have been around for some time now and is producing high quality products. This rich heritage lends a lot of credibility to Splash as a brand.Response to host of domestic companies imitating Bio-LinkIntegrationThe organization within Splash Corporation should be aligned to support a consistent brand image by streamlining the brand into 5 recognizable values of Creativity, Imagination, Beautification, Safety and Quality.
DifferentiationSplash should not just be a beauty product manufacturer but should also try to differentiate itself from the crowd by opening Experience body shops, organizing Splash football League or like opening of brand stores, similar to Nike Town.Risk ManagementSplash is an organization that always dares to be different and keeps in touch with current market trends. They are always willing to take risks if that it what they perceived the market wants. Example of this risk-taking is the entry into the hair care industry via green papaya product called Bio Link.
Now it should form marketing alliances with the host of domestic companies so that there is no dent with market share. By doing this, they could leverage on their existing brand equity and transfer this brand equity through the domestic base to the consumers in regards to low pricing and value proposition.Support: R&DSplash should continuously re-invest in the brand through committed R&D programs via the Splash R&D. They work with universities and research institutes to learn what is the best launching medium for philipino adults to bring out the power of emotional feel and satisfaction.Response to various producers flooding the market with a variety of low-cost products.
FocusThe CEO for Splash should provide a common vision for the brand and employees with a brand vision that states..."to become the world's strongest brand among females in age 20-40 in year 2012". This would provide a focus for all employees to strive and work towards this achievable and realistic goal. This removes the focus from the producers of low-cost products to products that are oriented to the satisfaction and performance with consumers of their product.
RelevanceSplash should evolve with changing times, as it is currently doing from a simple low cost beautification provider to premium and quality products. This could be achieved by the organization providing relevance to the brand by listening constantly to the ever-changing needs of customer and plugging-in to current market trends.LeadershipSplash should recognize that in order for the brand to succeed, an integrated brand communication plan is crucial and to achieve this, there must be a person in charge of the brand, to provide consistent and constant brand messages and communications. They should appoint a Local Brand PR to communicate effectively their product strategy to the consumers.
He should be focal point for all strategic brand planning and he should co-ordinate consistently and constantly all brand communications with regional brand PR teams in the organization. By this set up they could spend less on marketing communication, the benefit of which could be driven down to the mass customers in terms of price reduction and value proposition.
