_a Baby's Touch.pdf

Baby’s Touch Facial Milk Cleanser and Moisturizer A Usage, Attitude and Image (UAI) survey conducted by Metrolab revealed that there was a need for a mild cleanser or astringent which will cater to females with sensitive skin. Based on survey results, 40% of the female population had sensitive skin. A Focus Group Discussion (FGD) held later confirmed that this was a good segment to enter. Being a market leader in astringents, Metrolab, through its Eskinol business unit, thought of coming up with a new product line under the astringent category which will cater to this new market segment. Eskinol was a very popular facial cleanser brand among the C-to-D market that was looking for a value-priced cleanser for removing facial dirt and makeup. To veer away from Eskinol’s image, which was known to be “strong” on the skin (even “harsh”), the company thought of naming the new product “Baby’s Touch.” Baby’s Touch was thus launched, but it never took off. Its market penetration barely reached 10% of its target, and whatever growth was there soon declined. During the first year of its existence, consumers had been described as “indifferent.” In view of the very optimistic results of the market research, the Eskinol unit was puzzled with this performance. The Product Baby’s Touch was the only facial cleansing lotion that was locally produced in the market which both cleansed and moisturized. The moisturizing benefit was made possible by the product’s milk ingredient, which also prevented the skin from drying. The mild formulation removed dirt from the skin without the harshness usually attributed to astringent and soap. The same direction for usage applied both to astringents and Baby’s Touch. It was packaged in a clear plastic container very unlike the sleek bottles of Eskinol products and was available only in 150 ml. bottles. Since the container was transparent, the content - which has the appearance of watered-down milk (dirty white milk highly diluted in water) -- was visible. The label “Baby’s Touch Facial Milk Cleanser” was printed in pink. To emphasize its gentleness, the statement “For baby-soft, baby-smooth skin” was highlighted. Nothing in the label suggested that the product was being manufactured by Eskinol. Instead, a line at the back indicated that Baby’s Touch was made by “Metrolab Industries, Inc.” Baby’s Touch was clinically tested for sensitivity by dermatologists to assure users of its mildness. The words “sensitivity-tested by dermatologists” was printed on the container and promotional materials. Based on a survey conducted by Metrolab, 8 out of 10 users rated the product highly after sampling, proving that the product was actually effective and not irritating. Some consumers described the effect on the skin as “velvety” or “oily” because of the milk ingredients. Promotions The marketing department had admitted that initial promotional activities for Baby’s Touch were few and gave no impact. During the first year, promotions were limited to press releases. In an attempt to revitalize sales on its second

year, Eskinol management came up with contests that offered small prizes. Guestings were also done in morning TV shows. But even with the added promotional activities, sales declined even further. Pricing Baby’s Touch sold in the market at P23.50 per 150 ml. bottle. Since there were no local competitors, the price was made comparable with other Eskinol products and substitutes (which targeted the mass market). Eskinol Classic, the flagship astringent (facial cleanser), sold at P20.50 per 150 ml. while the price of Eskinol Naturals (i.e. astringent with cucumber, papaya extract, etc.) was pegged at P22.00 per 150 ml. Eskinol Advance Essentia B, an astringent which claimed to retard skin aging, was priced at P23.60. Meanwhile, Eskinol Dermaclear C, a clarifying lotion, sold at P26.50. The production cost of Baby’s Touch was slightly higher than Eskinol Naturals and Classics. Therefore, the profit margin for all Eskinol products was more or less the same. Place Eskinol generally used a push strategy in distributing its products. Baby’s Touch followed the same distribution strategy. In fact, the same dealers of Eskinol were also asked to distribute Baby’s Touch as they did other Eskinol products. The same commissions were given. Stores and supermarkets were requested to allocate shelf space to Baby’s Touch, preferably beside Eskinol products. Initially, they agreed to this arrangement because of the existing brand equity/goodwill of Eskinol products. However, the shelf space for Baby’s Touch gradually lessened as sales generation weakened. Target Segment and Positioning Baby’s Touch targeted urban females aged 16 to 30, with dry sensitive and normal sensitive skin, upbeat, belonging to the C-to-D income classes, who sought value for money, mildness, and cleansing power in their facial cleansers. It was positioned as a mild alternative to existing astringents, priced a few pesos higher than other Eskinol products, with the exception of Eskinol Dermaclear, while functioning more as a clarifying lotion than as an astringent.

A Press Release for Baby’s Touch