Analysis of Superdrug | Product Kick off Strategy

Superdrug is planning to kick off new product "Reek body oil" for customers with delicate skin. The business's brand gets a national recognition in the UK and the firm's financial performance has been outstanding. As the head of marketing I have already been tasked by the panel to plan and execute strategies that will efficiently unveiling the new product in to the market.

The company also wishes to increase in its geographical area by adding the new product and increase it.

Introduction of the product will boost the market show of Superdrug and also affect the company's financial performance.

This report will look at Superdrug's framework and also suggest the suitable strategy to present the new product in addition to a suited dissemination process to get commitment of the stakeholders.


Superdrug became an integral part of AS Watson Family in October 2002. Superdrug was founded in 1964 by Goldstein family who, after creating the business enterprise from just one store to many stores then sold the Superdrug business in 1987 to Kingfisher. In 1988 the Tip Top string was purchased by Kingfisher to be able to expand the company further. Next yr in 1989, the companies' quantity of stores risen to 650 by the acquisition of Medicare chain.

Superdrug was then bought by Kruidvat Baheer BV in 2001 who then sold their retail resources to ASW in October 2002.

Superdrug is the second largest health insurance and beauty shop which currently operate over 900 stores in UK and Republic of Ireland. Superdrug currently has 226 waiting for you pharmacies as well.

http://www. superdrug. com/about-us/superdrug-today/page/superdrugtoday/


According to T. M Burns and G. M Stalker (1961) there are two kinds of structures that a company can choose from, namely Organic and Mechanistic. Companies conform constructions to help them react to different changes and uncertainties in the environment.

In a vibrant and uncertain environment companies need to adapt or maintain an organic and natural style framework and companies who operate in a certain and secure environment may benefit from a mechanistic style structure.

A few characteristics of every of the above mentioned structures are talked about in Appendix 1.

According to the characteristics explained in appendix 1, Superdrug operates in a certain and stable environment and benefits from the mechanistic style structure. This type of structure is preferred for Superdrug in order to successfully launch its new product on the market.

Adapting this kind of structure will permit Superdrug to respond to changes in the environment.

http://www. businessmate. org/Article. php?ArtikelId=44


Every company that wishes to attain its goals or to successfully complete a specific project must create a strategy. We are able to use a strategy to increase the profitability of any tasks success.

In order to successfully launch the new product in to the market Superdrug must adapt a technique that will allow it to get an advantage over its rivals.

Below is a description of different strategies that Superdrug can choose from. The choices of strategies are from Porters common strategies of cost control, differentiation or give attention to the market.


According to Michael Porter a company positions itself by leveraging its strengths. He argues that a companies strength falls into one of two categories: cost advantages and differentiation.

By making use of the advantages of the company in a small or broad scope, 3 strategies end result which are described Porters General Strategies, particularly cost leadership, differentiation and focus.

The reason these strategies are called generic is basically because these strategies are not dependant on the industry or the firm.

Appendix 2 illustrates these strategies.

COST Management STRATEGY: calls for the company to be the lowest cost developer f a product or service within its respected industry irrespective of any level of quality. In this plan the business will sell its product/service at a cost which is at the average industry level to gain earnings or below the industry average to get a higher earnings than its competitors to get market share. This plan is mostly successful in a broad market.

In the function of competition in price the company can maintain some success as the competition suffers.

In instances where in fact the industry matures and prices decline, the company can produce its products more cheaply and remains profitable for a longer time.

DIFFERENTIATION STRATEGY: calls for a company to build up a product/service that will catch the attention of customers by its unique properties and customer value it by convinced that it differs or better that its rivals. The company offering this product/service may increase the price because of the value and uniqueness added to the product/service.

A major disadvantage of the strategy is the fact if the price tag on the product/service increases, the cost is then exceeded onto customers who can simply find the same product/service at a cheaper price.

FOCUS/NICHE : strategy is the kind of strategy adapted by companies which operate in a slim segment and direct their efforts to achieve an expense or differentiation benefits within that segment.

The company believes that the targets of the business are better met by fully concentrating on the product/service they provide.

Companies working with this plan like a higher customer commitment and for this reason customer commitment it discourages other competitors to compete immediately.

A disadvantage of the strategy is the fact companies have less volume of products and therefore have a lower bargaining power using its suppliers.

Another downside include companies functioning in a broader market can also adopt the product/service and can compete directly with the company. Competitors that contain the same strategy can also conform the service/product and by eliminating the sub sections to serve better.

Porter also argues that these strategies are not compatible with each other and companies adapting two of the strategies might not exactly profit in any way. This sort of situation is referred to as "stuck in the centre" by Porter.

For example when a company differentiates itself by providing a superior quality product, it cannot keep up with the same quality of the product if it would like to adapt a cost leadership strategy.

If a firm wishes to reach your goals by adapting different strategies it needs to develop different business units for every single strategy they use.

http://www. quickmba. com/strategy/generic. shtml


In order for Superdrug to present the new product "Reek body petrol" for customers with sensitive skin, they will need to conform a strategy that may enable the company to increase its market talk about and also increase the company's financial performance.

This product is usually to be launched in a particular market segment of course, if this proves to be successful then it will be across the country.

As the top of marketing division, I would suggest Superdrug to look at the cost authority strategy as it will improve the market show of Superdrug and also supply the company a lasting competitive benefits against its competitors by supplying a good quality product at the least expensive price.

This product is specifically designed for sensitive pores and skin and in a demographic area. Although there are a great number of oils which are aimed at people who have sensitive skin, Reek body petrol will be cheaper in price and also of good quality.

Successful launch of this product will enable Superdrug to expand it in several areas of the country too.

According to articles in redorbit. com posted in August 2007, Superdrug was functioning on a differentiation strategy and reported a 2. 7% increase in sales and a 34. 8% increase in profits for the entire year to December 2006.

Although this plan has advanced Superdrug's performance its strategy still confronted challenges.

With a very young customer data bottom part and low margins, the differentiation strategy must change.

Over the years, both largest UK health insurance and beauty specialists, Boots and Superdrug have been struck by the supermarkets, which have increased their talk about of all health and beauty costs to nearly fifty percent. To be able to differentiate themselves from this Boots and Superdrug both implemented the differentiation strategy. Boots centered more on its health credentials and Superdrug advanced its reputation to call itself "Top Shop of medical and beauty sector".

This strategy meant that Superdrug would need to invest in new store formats which focus on its fashion beauty credentials. Superdrug has added fashion accessories to its give attention to health and cosmetics. Stores were restored and reorganised which made them more appealing to customers and the employees have been in an intensive training program to enhance the customer experience.

Superdrug was also underperforming on the market and burning off market show. The profit percentage was minimum in the sector at 2. 7% which is 50 % of Boots at 6. 8%.

The task that Superdrug's current strategy faces is the fact that it attracts much young women who do not have a high disposable income, as opposed to Boots customers who are much mature and are prepared to pay more for skincare products and high grade brands. Superdrug must improve the footfall in stores which will improve the conversion rates and generate high amounts. This will be achieved by more visible marketing and better customer support.

Source: Verdict Research and Datamonitor.

http://www. redorbit. com/news/health/1028314/superdrug_differentiation_strategy_showing_signs_of_success/index. html

SUPERDRUG'S SOCIAL Insurance policy

Superdrug is a challenging brand on behalf of their customers. Proof this is the campaign to lessen the VAT on condoms in 2006 when it was reduced to 5% from 17. 5%. Their latest marketing campaign is to reduce the VAT on kids sunlight maintenance systems and also get the federal government to reclassify sunshine care products from an extravagance items to a essential health item. Superdrug also launches plan to raise awareness for skin cancer tumor.

Superdrug also offers a collaboration with the Prince's Trust which helps young people with learning and producing potential and will be offering them funds by creating job opportunities.

Superdrug also helps charities and provides cash to them to improve awareness against skin area cancer. A couple of examples of these charities are the Institute of Cancers Research, the Teenage Tumors Trust and CRUK.

Superdrug has helped increase over 1 million for these charities.

Superdrug also supports the NSPCC's childline marketing campaign.

http://www. superdrug. com/about-us/superdrug-views/page/superdrugviews/

Superdrug comes with an environmental coverage which is committed to

Throughout all stores and syndication centres Superdrug uses liable energy management and also cost effective energy efficiency.

To minimise the quantity of fuel used by its HGV fleet.

To minimise the impact of materials and services found in building, shopfitting, repairing and maintenance of their premises on the surroundings.

Recycling, waste products management and making sure the safe removal of throw away.

Considering the surroundings by using good environmental techniques among their brand suppliers and purchasing decisions.

Avoid using needless packaging.

Working with suppliers of own brand pulp derived products and wood products to use material from well maintained forests.

To bring a finish to all trials of makeup products and toiletries products on pets or animals.

When using own brand products, being aware of the environmental issues and taking appropriate activities.

Making sure their suppliers from growing countries are employing acceptable environmental, health and safety, and occupation conditions.

http://www. superdrug. com/about-us/superdrug-views/page/superdrugviews/

MISSION Assertion

"Our purpose is to be the best in everyday accessible beauty and are committed to bringing technology and the latest styles and fads to every traditional in the UK and Southern Ireland at fantastic prices".

http://www. superdrug. com/about-us/superdrug-today/page/superdrugtoday/


  • To successfully launch Reek Body Olive oil for customers for hypersensitive skin area.
  • Increase market share and influence the business's financial performance.
  • Engaging the stakeholders, suppliers and advisors in the advantages of the product.
  • Superdrug desires to develop in its physical area and develop the new product.


Below I've outlined enough time range for the start of Reek body petrol. The task is organized for 10 weeks. An in depth timetable is illustrated below.




Decide on which geographic area to kick off product and get competition information regarding price and quality


Present intend to stakeholders, suppliers and advisors to gain commitment


Launch product in store with POS marketing leaflets


TV advertisements and leaflets in beauty publications to make awareness


Review sales and get opinions from store personnel and customers


Provide results to stakeholders


A dissemination plan is vital to all or any successful partnership tasks. It will permit sustainability of job results and ensure continuation of interactions between both lovers themselves and between associates and local stars.

As always planning is one of the success factors in a project. If you'd like the project to have a real impact you have to plan for dissemination by any means periods of the job: the starting stage, during the task, by the end of the task and following conclusion of all project activities.

In partnership jobs you give attention to the process somewhat than on the product, and on encounters somewhat than on results. This may have an impact on your dissemination activities and strategies.

You shouldn't wait until the job has been completed to share your experiences as well as your results. There is a hyperlink between information sharing and dissemination. If you think of information sharing and basic communication to the target audience (associates, local celebrities, organisational community etc) as parts of the dissemination process, you'll be available to useful suggestions from your target audience from the start of the process.

The LLP Glossary: http://ec. europa. eu/education/programmes/llp/glossary_en. html gives you this meaning: "Activities designed to ensure that the results of the LLP and its predecessors are properly recognised, shown and carried out on a wide size". Dissemination is also often referred to as a process which involves a show of results and experience with the purpose of influencing just how other people think and respond, or of making them aware of a fresh idea, product or service.

There are a lot more ways to describe the seeks of the dissemination process-motivate, motivate, suggest, call focus on, arouse interest, enlighten, encourage, make obvious, channel, sum up, concentrate, extreme caution, prevent, presentThe main thing is that you are alert to your aim and this you select a proper method.

Dissemination is important because

The projects comes to an end - but the results go on and are only meaningful if they're put to good use and lead to functional changes

Concluded - but not finished. The job plays a part in lifelong learning and personal development, both regarding those starting the project and those whom the project aims to support.

Make personnel and trainees aware of what a good job they have got done

Make all interested get-togethers and a wider general population aware of what you have accomplished

Influence decision-makers - important to them, too, as a basis for decision

http://www. programkontoret. se/Global/QaS/Dokument/Dissemination_guidance. pdf


The product unveiling is planned and executed within 10 weeks and there is a rigid monitoring and analysis process which is also overseen by stakeholders who receive regular reviews from me in the form of meetings and confirming.

Each step in the procedure is watched by me and a team which involves individuals who possess the relevant skills to launch the merchandise.

Evaluation of every process will be useful as it will provide opinions on any unforeseen challenges that may arise in starting the new product.


http://www. superdrug. com/about-us/superdrug-today/page/superdrugtoday/

Accessed on 17th February 2011

http://www. businessmate. org/Article. php?ArtikelId=44

Accessed on 17th February 2011

http://www. quickmba. com/strategy/generic. shtml

Accessed on 17th Feb 2011

http://www. redorbit. com/news/health/1028314/superdrug_differentiation_strategy_showing_signs_of_success/index. html

Accessed on 17th February 2011

http://www. superdrug. com/about-us/superdrug-views/page/superdrugviews/

Accessed on 17th Feb 2011

http://ec. europa. eu/education/programmes/llp/glossary_en. html

Accessed on 17th February 2011

http://www. programkontoret. se/Global/QaS/Dokument/Dissemination_guidance. pdf

Accessed on 17th February 2011

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