Asia has become a major player in the global economy scene. Despite an economic crisis in 1997-1998 which even culminated in the crash of the Asian stock market, Asia has managed to recover. In 2001, the Asia-Pacific region accounted for 37% in the sales for global skin care (Briney, 2002). Spending on skin products, it seems, is not something Asians would scrimp about. Furthermore, the market for skin whitening has grown tremendously. According to Euromonitor International, a leading provider in international market statistics and database on industries, Asia has experienced a rise in demand for skin whitening products.
While Japan, South Korean and Taiwan reigns as the premium players in the whitening boom, other Asian countries are starting to follow. A Nielsen consumer report published in 2007 states that 28% of Filipinos would indulge in skin whitening if “money were no object” (Poblete, 2008). Paulo Tirol, Assistant Brand Manager for Procter & Gamble Distributing (Phils. ) Inc. confirms this, adding that the market for whitening products in the country is more than 71% (2008). There is a big market demand for skin whitening products in the Philippines.
A skin whitening product in the form of glutathione soap is projected to perform well in the country. Target Market The Philippines is a country is South East Asia. It was once colonized by Spain, US and Japan (Central Intelligence Agency, 2008). This colonization resulted in Filipinos of different descents and skin tone. The product, glutathione soap, will be marketed towards Filipino women in the 25-35 age brackets in accordance with a study conducted by Research International in 2006. The study, prepared by L’Oreal Philippines, Inc.
, found that Filipino women in aforementioned age bracket are predisposed to do skin whitening (Poblete, 2008). This is followed by women in 35-44 age brackets (2008). The figures speak for themselves- Filipino women do want to lighten their skin color. The product will capitalize on this. Product Description Skin whitening process is dependent on antioxidants. These antioxidants not only lessen skin damage and darkening but are also known to alter the effect of oxygen on bodily tissues (Malabaguio, 2008, p. 68). One such antioxidant is glutathione.
Glutathione works by enhancing the body’s immune system, aids in DNA repair, and detoxifies the liver (Uy, 2008, p. 54). Its whitening benefits have been a surprise. Asian patients who have taking glutathione supplements for hepatitis C reported skin whitening (p. 55). Consequent studies show that lightens the skin by “inhibiting melanin and converting it into the lighter phaeomelanin” (p. 55). The product to be marketed is a 130g bar of glutathione herbal soap. The soap will be made from raw materials bought in the country.
A breakdown of materials follows: titanium dioxide, sodium silicate, anti-bacterial liquid, preservative, moisturizer, cocodiethanolamide (CDEA), kamias extract, lye solution, evaporated milk, coconut oil, glutathione capsules, fragrance, apple extract, and distilled water (Malabaguio, 2008, p. 68). All ingredients will be source locally. Currently, glutathione capsules are not produced in the Philippines. Most are manufactured in the US and Japan. There are, however, suppliers who sell it online.
This product will use Active White glutathione capsule which lists corn, yeast, wheat, soy, rice, barley, lactose, citrus, milk, fish and egg products as ingredients (p. 70). It is a brand registered with the Philippine Bureau of Food and Drug so the safety of it is guaranteed (p. 70). Other materials that will be needed are pail, spatula, hand mixer, scraper, small containers and mold to shape the soap (p. 68). It is also suggested that the suppliers to be sourced will be located within Metro Manila, the country’s capital.
The factory will be near the sales center so that delivery of the soap will be easier. The regional sales center will also be in Metro Manila. Quezon City, Mandaluyung, Makati and Manila are the cities considered to be the headquarters given their status as centers of business and commerce in the country. Pricing Strategy The market range for glutathione soap is Php 100-Php 200. The following is a price quote of ingredients from a soap-making lecturer. It is enough generate to 60 glutathione soaps • Titanium dioxide: PhP 400 • Sodium Silicate: PhP 55
• Anti-bacterial liquid: PhP 250 • Preservative : PhP 500 • Moisturizer: PhP 240 • CDEA: PhP 135 • Lye Solution: PhP 45 • Evaporated Milk: PhP 35 • Coconut Oil: PhP 73 • Glutathione Capsule: PhP 2000 (box of 60 capsules) • Fragrance: 250 • Apple Extracr: 27 • Distilled Water: PhP 220 • Hand mixer: PhP 2 200 (Malabaguio, 2008, pp. 68-69). To compute the production cost, add up all cost for ingredients, divide with the retail volume and multiply with quantity. For the glutathione soap, the computation is as follows: titanium dioxide (PhP 0.
72) + sodium silicate (PhP 3. 30) + anti-bacteria (PhP 0. 75) + preservative (PhP 1. 50) + moisturizer (PhP 14. 40) + CDEA (PhP 8. 10) + lye solution (PhP 41. 14) + evaporated milk (PhP 5. 68) + coconut oil (PhP 540. 20)+ glutathione powder (PhP 420) + fragrance (PhP 250) + apple extract (PhP 27) + distilled water (PhP80) = PhP 1329. 79 for 60 bars, PhP 23. 21 per bar. Adding 5 % for overhead costs and multiplying it by 2 to get a 100 percent markup, the price is roughly about PhP 48. 75 lower than the price of mainstream glutathione soaps in the market.
Advertising and Promotion The glutathione soap will initially be sold over the internet through a website. A company website will provide not only the product information but contact information but FAQ as well. Additionally, the product will be distributed in convenient stores such as 7-11 and Watson’s. The presence of convenience stores around the country will help breed in familiarity. Once the product will gain attention, distribution to major department stores and supermarkets will follow Conclusion and Recommendations
Given the rage over skin whitening products, marketing glutathione soap in the Philippines is possible. What is important is to ensure that the product is of high quality, affordable and readily available. To guarantee this, the following recommendations are to be applied: • Do product testing repeatedly to allow room for product improvement • Get feedback not only from customers but the distributors as well • Set up product website that is user-friendly • Build good relationships with suppliers Reference Briney, C. (2002). “ Asia-Pacific skin care: high margin fuels sales.
” Retrieved January 16, 2009, from Euromonitor. Website:http:www. euromonitor. com Central Intelligence Agency (2008). “Philippines. ” Retrieved January 16, 2009, from CIA The World Factbook. Website: https://www. cia. gov/library/publications/the-world-factbook/geos/rp. html Malabaguio, M. (March 2008). Glutathione herbal soap. Entrepreneur,80, 68-70. Poblete, J. (2008). “For the Fairest. ” Retrieved January 16, 2009, from Business World Weekender. Website: http:www. bworld. com. ph Uy, C. (October 2008). The truth about glutathione. Health Today, 54-55.Sample Essay of EduBirdie.com