Integrated Marketing Communication for Neutrogena in Australia

This report provides a comprehensive analysis of Neutrogena's integrated marketing communication (IMC) strategy in the Australian market. It begins with a situational analysis, evaluating the current market, consumer behavior, and competitive landscape, highlighting Neutrogena's strong brand loyalty but also the growing trend towards organic skincare products. A SWOT analysis identifies the company's strengths (strong dealer community, good capital return) and weaknesses (poor challenge management, limited product range), alongside opportunities (innovation, organic product introduction) and threats (intense competition, changing consumer behaviors). The report then outlines strategic marketing decisions, including targeting the male demographic aged 35-45, and a detailed communication strategy leveraging television commercials, social media, and event sponsorships. The report also includes a positioning map, media buying tactics, and a timeline of activities, concluding that Neutrogena should emphasize the male skincare market and effective media campaigns, particularly social media and digital advertising, to sustain its market presence. The report emphasizes the importance of adapting to changing consumer preferences and the competitive environment.

Running head: INTEGRATED MARKETING COMMUNICATION
INTEGRATED MARKETING COMMUNICATION
Name of the Student
Name of the University
Author Note

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Situational Analysis:
The situational analysis of Australian skincare companies will help the firm to underrated
its current market. The situational analysis is one of the major and vital part of marketing which
makes any company to perceive the present market along with the analysis of existing
competitors. The following section of the report presents the detail situational analysis of
Neutrogena in the Australian market.
Current Market Analysis:
The current market analysis of the company is based on the existing market share and
current skincare trends within Australian context. Among all the skincare products in the
Australia market, Neutrogena has strong brand loyalty within the customers. The company has
established strong public image with the providence of highest quality of products to the
customers. The company holds a great percentage of market share after Nivea in Australian
market (McDonald and Wilson 2016). However, according to the different products of skincare,
the market shares of the company in the Australia market varies.

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Figure 1: Market share of Neutrogena
Source: (Roy Morgan 2017)
Consumer Analysis:
The market of any products is based on the consumers of the company. Similarly, the
market of Neutrogena is based on the consumers of young age. It is found that the younger
people, especially the women creates grounds for Neutrogena. However, the number of men
consumers are increasing. It is found that the men of Australia are leaning towards usage of
skincare (NPD Group 2015). On the other hand, consumers are recently tending to use the
organic products for the skincare, which seems to be a challenge to the company for holding the
consumers (Philpott 2017).

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Competitors Analysis:
Considering the fact of competitor analysis of the company, there are number of
competitors of Neutrogena in Australia. The competitor analysis of the company presents the
position of the company in the market of Australia in terms of gaining competitive advantages
from the same. It is found from the market research that the company Nivea is the major and
primary competitors of the company. Neiva dominates the skincare industry in Australia.
Another major competitors of the company are L’Oreal, Olay, Dove and others (Braun and
Latham 2014). The company in Australia is belonging to the strong and intense competitive
market within which it is difficult to target the men customers (Elsner 2012). On the other hand,
it must be mentioned that the present tendency of the consumers is referred to the accusation of
the organic and natural products. There are many companies in the international as well as in the
Australian market which are fulfilling the demands and needs of the consumers with the
providence of the natural skincare products. Furthermore, there are limited verities of products
that are offered by the company to the consumers, whereas other competitor companies are
providing the consumers with diverse options of products to choose from. Therefore, the
competitor analysis makes it clear that the firm has intense competitive market in Australia
which can be a threat to the sustainability of the firm in near future.
SWOT Analysis:
The SWOT analysis being an important marketing tool will help the company to
understand and evaluate the internal strengths and weakness for approaching he external
opportunities and threats.
Strengths Weakness

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 Stronger dealer community
 Strong free cash flow
 Good capital return
 High level of customer satisfaction
 Poor challenge management
 Less innovation
 Limited range of products
 Inorganic products
Opportunities Threats
 Innovation
 Introduction to organic products
 Increasing product range
 Introduction of men’s skincare
products
 Strong and intense competition
 Increasing trends
 Continuous changing in consumer
behaviors
 New organic brand entry in market
According to the above table of SWOT analysis there are equal amount of opportunities
and threats for the chosen company. The internal strengths of the company are the indication of
the resources and capabilities of the company for grabbing the opportunities in the Australian
market. Stronger dealer community is referred to the strong relationship between the distributor
and the company which further leads to the strong and free cash flow out of the products. On the
other hand, the company has received relatively successful capital return out of their business
which is an indication of the profitability of Neutrogena. The strengths present some market
opportunities which are innovation, introduction to organic products, increasing product
range, introduction of men’s skincare products which will further ensure the sustainability of
the firm in the Australian market.

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The existing internal weaknesses of the company is the indication towards the threats to
the sustainability and profitability of the firm in the chosen context. The above table presents the
weakness of the firm which indicates the poor management of risks and challenges, less
innovation, limited range of products and inorganic products of Neutrogena which is leading
the organization to face some threats in Australian market. The Australian market is already
intensely competitive and the present trends of organic products are producing threats to the
company such as strong competition, increasing organic products trends, and entry of new
brands holding organic products and the continuous and rapid change in consumer
behaviors.
Strategic campaigning decisions:
Target market decision:
The target market for Neutrogena’s rapid wrinkle repair is the male customers in
Australia having the age group between 35 to 45 years. This market is being targeted due to the
reason that, according to various media reports being published in the recent times, it is being
stated that the growth of the consumption of cosmetics among the male population is showing
positive trend. According to the report of (Roy Morgan 2017), in March, 2016, 3.7 million
Australian men have purchased the skincare products. Thus, there are huge market opportunities
0for Neutrogena in targeting the male customers.

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Figure 2: Skincare products purchased by age groups
Source: (Roy Morgan 2017)
From the above figure, it is being seen that, the age group between 35 to 49 is not the
highest revenue generating segment, but it is one of the most potential segment. Moreover,
targeting the age group between the 35 to 45 years will also automatically attract the other age
groups also. Targeting the male customers will also have favorable impact on the business
opportunities for Neutrogena due to the fact that, the women segment is already being saturated
with the presence of various brands.
Communication strategy:
Decision stage Outcome Communication medium

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Arousal of need Communicating the value
creation to the customers.
Creation of the brand value in
the market (Brunello 2013).
Television commercials, social
media marketing, distribution
of samples and sponsoring of
events.
Evaluation of the
alternatives
Communicating the features of
the product to the customers.
Make them aware about the
competencies of the product
compared to the competitors.
Communicating the point of
difference to the customers.
Television commercials, social
media marketing and free
sampling. Promotional
activities in public places.
Purchase decision Enhancing the brand value and
market presence of the
product. Made available the
products in as retail stores and
online stores in the target
market.
Retail marketing, using of
danglers in the retail stores,
television commercials and
free sampling.
Usage Retaining the existing
customer base along with
generating positive word of
mouth. Increasing the rate of
brand loyalty and satisfaction
of the customers (Erdogmus
Television commercials, print
media, online marketing and
sponsoring of events.

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and Cicek 2012). Enhancing
the brand recalling of the
existing customers.
Determination of the communication mediums
Figure 3: Advertising share by medium
Source: (Digitalstrategyconsulting.com 2017)
The above figure is showing the trend of growth for different marketing mediums.
Accordingly, the communication strategy for Neutrogena is being determined. According to the
above figure, internet is showing the most increase in the trend of growth. The market share of
television is the highest but the growth rate is slow. Thus, Neutrogena will involve the use of
television commercials in order to reach out to more number of customers (Kuuru and Tuominen

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2016). Moreover, involvement of the social media will also help them to attract the younger
generation along with determining the change in the market requirement.
The more extensive and effective will be the social media marketing, the more will be the
communication and networking between the organization and the customers (De Vries, Gensler
and Leeflang 2012). It will in turn help in enhancing the brand recall and the value among the
target market. Cricket and tennis are the two most popular sports events in Australia and thus it
will be an effective idea to promote the television commercials during the sports events.
Moreover, free samples will also be distributed to aware the customers about the product. This
will enable them to have the real life experience about the product.

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Positioning map:
Premium products
AVEDA ESTEE LAUDER
LANCOME
CLINIQUE
Jurlique
Origins
100 % natural 0% natural
FANCL Olay Neutrogena
The Body Shop
Dove Nivea
Mass market products
Brand positioning strategy:
The product will be positioned as the mass market and affordable products in the market.
This will help them in targeting the large sections of the target market. However, the product will
be positioned as non-natural product (Hassan and Craft 2012). This is due to maintain the low
production cost of the product. The positioning will be done according to the campaign objective

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of them. The tag line of this campaign is “everyone should look after their skin”. Thus, according
to the tagline, everyone denotes the mass market, which is being targeted.
Media buying tactics:
Medium Desired outcome Effectiveness Examples
Thematic
television
commercials
It will run for 15
seconds in sports
and news channels.
This is due to the
reason that, sports
and new channels
are having the most
penetration among
the male
population. It will
help to create
overnight
awareness and
recall for the
customers.
Effectiveness will be
high due to the
repeated displays of
the commercials.
HIGH
The television commercial
done by Cadbury with
popular jingles helped
them to enhance the brand
recall of the customers.