CASE STUDY

Bronze Adora
The Bronze Adora company had a new Marketing Director Helen Dawn. It was mid-year
2015 and the company was starting its annual planning and budgeting process. The
Managing Director (MD), Nathan James, asked Helen to do her bit and prepare a forecast
of expected UK sales for the companys sun protection products for the coming year, 2016.
Based on 2015 sales to date, by the end of the year the company was forecast to enjoy 28%
share of all UK sun protection sales. This would equate to approximately 43 million sales
revenue and 13 million gross contribution, and reflected an increase on the companys
previous three years sales and profit performance. This was in spite of considerably less
focus in recent years on new product development and investment in brand support. The MD
commented to Helen Dawn that the company was clearly in good shape and working in the
right direction. He joked that with a winning strategy in place, Helen would have little to do in
her new job! However, the MDs parting shot, was that in a bid to increase operating profit
the company would be expecting higher levels of marketing contribution over the next few
years.
Bronze Adora was a manufacturer of high quality, branded sun protection products. The
Bronze Adora company had been producing suncare products for 75 years. During that time
it had developed the most highly recognised and trusted brand in the market and a portfolio
of products that spanned sun protection, after-sun and self-tan categories. The company
manufactured in a range of product formats although lotions and milk format pre-dominated
in their portfolio. The brand represented the ultimate in protection from the suns harmful
rays.
THE SUN PROTECTION MARKET
Market characteristics
Sun protection was a seasonal market in the UK with sales concentrated between May and
September. This was the time in the year when the suns rays are at their most dangerous
and when the majority of people take their holidays. Retail intermediaries typically gave
products in this category extra shelf space during these key months. However, retailers also
made efforts to build sales outside this period, seeking to take advantage of the trend for
more frequent foreign holidays, winter skiing and cheap city breaks.
The market was strongly based on brands that the consumer could trust. In spite of this,
price discounting was fierce at times, particularly from the multiple retail grocers. In recent
years, the number of units sold had increased at a slightly faster rate than value, reflecting
this promotional activity. This signalled the danger for sun protection products being seen as
commodity products [- for a long time consumers had felt that sun care products were overpriced]. This presented a significant challenge to brand positioning.
Market size
The total UK market for sun protection had grown in the last five years and was forecast to
keep on growing for the next five years (- see Table 1).

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Table 1: The UK market for sun protection products actual and forecast 2010-2020
m
2010
2011
2012
2013
2014
2015 est
2016
2017
2018
2019
2020

Index
161
176
199
180
183
207
212
222
233
243
254

78
85
96
87
88
100
103
107
113
118
123

The value of full year retail sales in 2015 (the outturn) was estimated at 207 million

Use of sun protection products

Avoiding sunburn and protection against skin cancer were the two key reasons why all
people used sun protection. The growing desire for eternal youth was also acknowledged as
a key reason for the increasing use of sun protection products. The full list of consumer
motivations for purchase is shown in Figure 1.
Helen Dawns first decisive action was to commission some market research to uncover any
segmentation in the UK market for sun protection products.
Based on this research it was found that nearly two-thirds of sun protection products were
bought by people whose key reason for purchase was protection against the suns harmful
rays. Labelled the PROTECT segment, these consumers were traditionalists who bought into
the associated inconvenience that came with having to apply sun protection products. These
consumers were also more likely to adopt a planned approach to any purchase of suncare
products. This was in sharp contrast to the identified segment of customers the NOHASSLE segment - who sought to minimise the inconvenience and aggravation in both sun
product purchase and application. A significant proportion of this segment were active
individuals who enjoyed the outdoors and who were more likely to engage in sporting and
fitness activities. A third segment of customers was identified as adults purchasing products
for use on children. This CHILDREN segment had seen an increase in sales as
manufacturers had offered more and more dedicated childrens products. Research showed
that all customers, particularly in the Protect and Childrens segments, valued highly the
advice provided in-store and by manufacturer customer service departments. That said, no
player in the market was considered any better than any other in this regard. Sales in both
the No-Hassle and Children segments were forecast to increase over the coming years.
In addition to the three segments identified as well-established segments, the research
identified a potential fourth segment, MEN. This was based on the untapped potential for
selling sun protection products to men. Importantly, it was also based on the finding from the
research that identified a latent need for male-specific sun protection products. This reflected
the growing metrosexual trend responsible for driving sales in all mens grooming products.
Any current sales to men were captured in sales data for the other three segments. Helen
was aware, however, that tapping into the latent needs of any customer group was a way to
grow business incrementally. In terms of the MEN segment, specifically, Helen forecast a
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10% growth in total market sales from responding to the untapped need in the MEN
segment. This meant that unless any company targeted this segment specifically, there
would be no sales in the MEN segment. Sales to men would continue to be subsumed within
the other segments. This would mean that the percentages for MEN would similarly have to
be subsumed within the other 3 segments (Table 2).

Figure 1: Purchase motivation consumer reasons for using sun protection products,
2015
% agreement

To prevent tanning or tanlines

To get a longer-lasting tan

To get a better tan

To prevent peeling

16

To prevent premature wrinkles

16

To protect others (ie children,

partner, etc) from the sun

33

To protect from sun cancer

78

To prevent painful sunburn

84

10

20

30

50

40

60

70

80

Actual and forecast percentage sales figures by segment uncovered by the commissioned
independent market research are shown in Table 2.
Table 2: Percentage sales by segment - actual and forecast

2015
2016
2017
2018

Actual
Forecast
Forecast
Forecast

PROTECT
61%
46.0%
35%
28%

NO-HASSLE
22%
26.0%
29%
32%

CHILDREN
17%
23.0%
28%
30%

MEN
5.0%
8%
10%

Source: Commissioned Independent Market Research

The competitive landscape

Table 3 highlights another reason for Nathan James great pride in Bronze Adora - its ranking
in the market share league table. Bronze Adora was joint market leader, sharing the top slot
with the Solcare brand.

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90

Bootles 1 occupied a unique position in the suncare market. It was the leading retailer of
suncare products, and its own-brand Solcare range sold only by Bootles - was a leader in
the market. Until now Solcare had achieved their success by focusing only on their own retail
distribution channel. Further, Bootles had steadily increased its investment in R&D and its
advertising spend. Recent successes had been its Just Once product that gave the user
protection for up to six hours with just one application.
Table 3: Sun protection products UK market shares 2010-2015

Solcare
Bronze Adora
Sunray
Ilios

2010
m
37.0
46.7
29.0
8.1

%
23
29
18
5

2011
m
42
49
32
11

%
24
28
18
6

Own-label
Others

14.5
25.8

9
16

16
26

9
15

TOTAL

161

2012
m
50
48
34
14
20
34
54
199

176

%
25
24
17
7

2013
m
47
45
29
14

%
26
25
16
8

2014
m
49
48
33
15

%
27
26
18
8

2015
m
57.96
57.96
37.26
16.56

%
28
28
18
8

10
17

18
27

10
15

18
20

10
11

22.77
14.49

11
7

180

183

207

* Others includes: A list of small branded products

As detailed in Table 4, for each of the major players in the market the independent market
research also revealed the percentage of their business that they had in each segment,
expressed as a proportion of the companys total sales revenue. For example, 85% of
Bronze Adoras 2015 sales revenue was in the PROTECT segment. Helen Dawns working
assumption was that a competitors success in a market segment must reflect the fact that
the competitors marketing mix was, (1) generally in line with the needs of the respective
segment, and (2) with levels of investment in that marketing mix . To support this, the Bronze
Adora sales team indicated that in the market overall, its brand awareness was highest and
that in terms of product functionality, its name was synonymous with the ultimate in
protection.
Table 4:

COMPANY
Solcare
Bronze Adora
Sunray
Ilios
Own-label
Others

Percentage of company's business in each segment

as a proportion of company's total sales
OVERALL MARKET
PROTECT
NO-HASSLE
CHILDREN
SHARE
20%
28%
60%
20%
28%
85%
10%
5%
18%
25%
25%
50%
8%
70%
30%
0%
11%
70%
20%
10%
7%
50%
50%
0%

COSTS AND MARGINS

Based on estimates of the types of products sold in each segment, it is estimated that for
2015, approximate variable costs in the PROTECT, NO-HASSLE and CHILDREN segments
1

Bootles is the national drugstore/personal care chain in the UK.

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were, respectively, 67m, 17m, and 16m. Correspondingly, retail values were estimated to
be 128m, 43m and 35m. This equated to manufacturer average gross contribution
percentages of 30% (PROTECTION), 40% (NO-HASSLE), and 35% (CHILDREN). Retail
margins in the same segments were 25%, 35% and 30%.
Average unit retail prices for 200ml products in each of the three segments were: 7.50
(PROTECT), 11.50 (NO-HASSLE) and 10 (CHILDREN). The MEN segment was not
anticipated to be price-sensitive. Higher prices would be appropriate in a segment if such
prices reflected a products added value.
Bronze Adora matched its prices in each segment in line with competitor pricing in the same
segment.

PRODUCT VARIANTS
Sun protection products were manufactured in a variety of formats see Table 5. Innovation
in delivery formats (e.g., sprays) had ensured that products had been designed to fit with
consumers changing lifestyles. As a consequence, and as can be seen in Table 5, more
traditional delivery formats such as lotions and creams had experienced a decline in sales.
The newer, more convenient product delivery formats which were characteristic of many of
Solcares and Sunrays offerings warranted a price premium over more traditional formats.
Table 5: UK retail value sales of sun protection products by format, 2010-2015

Lotions & milks

Sprays
Creams
Oils
Others*

2010
m
103
34
13
5
6

%
64
21
8
3
4

2012
m
119
44
16
6
14

%
60
22
8
3
7

Total
161
100
199
100
* including sticks, mousses, gels, roll-ons, wipes

2014
m
102
53
11
4
13

%
56
29
6
2
7

2015
m
114
64
10
2
17

%
55
31
5
1
8

183

100

207

100

Public health campaigns had been used to raise awareness of the dangers of the suns
harmful rays. In addition, the industry had worked with cancer charities to communicate the
safe sun message and to get people to use sun protection products correctly. In regard to
the latter, this meant communication on how much product to apply and how often.
Consumers above the age of 55 were more likely to follow the product application advice on
labels on sunscreen packaging.
Much more education was still needed, particularly among young adults and men. Research
showed that one-fifth of those under 25 had been sunburnt in the last 12 months. However, it
was acknowledged that consumers were in general heeding health warnings and had
upgraded to higher UK protection formulations (- see Table 6). EU legislation was driving
standardised and simpler on-pack messages in respect of sun protection. This involved the
addition of a UVA logo where appropriate, and the addition of simple low to very high
labels to supplement SPF (sun protection factor) numbers. Positives aside, Helens research
had identified significant customer mis-understandings in sun protection labelling and,
correspondingly, clear opportunities to improve.
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Table 6: UK retail value sales of sun protection products by SPF, 2010-2015

2010

2012

2014

2015

Less than SPF 10

SPF 11-15
SPF 16-20
SPF 21-30
More than SPF 30+

m
40
29
32
35
24

%
25
18
20
22
15

m
48
34
32
48
38

%
24
17
16
24
19

m
26
31
35
53
38

%
14
17
19
29
21

m
25
33
35
66
48

%
12
16
17
32
23

Total

161

100

199

100

183

100

207

100

Modern formulations supported the manufacture of very high SPF products. The science
behind cosmetics and toiletries had been strongly at the forefront in advertising messages to
consumers and could only serve to heighten consumer expectation with regard to the
efficacy of all products in the industry, including sun protection. There had been significant
investment by some manufacturers in innovation of premium products in suncare e.g.,
products with added benefits. This might be seen to offer the potential to protect unit values
in the face of falling value sales. Bronze Adoras direct competitors could be seen to be at
the vanguard of this with their production of convenient-to-apply products.

ADVERTISING AND PROMOTION

2015 spend on all elements of promotion for sun protection was estimated at 8 million. This
reflected a dramatic decline as the recession prompted manufacturers to trim their
advertising budgets. In terms of advertising, campaigns tended to focus on sun protection
and health awareness. Helen was of the opinion that no player in the market could be
described as cutting-edge and particularly creative in their use of the promotional mix and
yet, she was pretty confident that promotions tailored to the needs of segments would be
desirable to customers.

DISTRIBUTION CHANNELS
Channel preferences by segment were expected to differ based on the profile, preferences
and purchase behaviour of consumers in those segments. Insights last gathered by Bronze
Adora showed that suncare protection products were distributed through a wide range of
channels. That said, these insights highlighted the importance of major retailers as channel
intermediaries, and the increasing importance of major grocery multiples [ - see Figure 2].
However, despite heavy discounting activity from multiple grocers, Bootles which stocked all
the key brands held on to 46% of share of distribution in the overall suncare market. These
figures on distribution did not include any latent needs for distribution channel that
consumers in each segment might have.
Overall, retailers had a preference for big brands. This tended to present a barrier for smaller
brands. As seasonal products, retailers gave extra space to sun protection products from
May to September, thus increasing visibility for products during these months. In the multiple
grocery channel, concentration of sales in the hands of a few key players had served to
increase their power in the distribution channel. In addition, retailer own-labels share of new
product launches in the industry had seen a significant rise. Amidst the economic recession,
this reflected grocery retailers response to consumers demand for cheaper own-label
products in order to save money. Research showed that these consumers considered the
quality of these products to be equivalent to branded products. Finally, successful selling to
the professional and increasingly powerful buyers in this channel required the kind of expert
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relationship management that only professional, key account managers could deliver.
Rumours in the industry suggested that Solcare were recruiting key account managers.

Figure 2: Distribution Channels for Suncare Products

Department
stores, 7%
Direct selling, 8%
Other chemists,
10%

Bootles, 46%

Department stores
Direct selling
Other chemists
Drugstores

Drugstores, 12%

Multiple grocers
Bootles

Multiple grocers,
17%

[NOTE: A Drugstore is primarily a health and beauty retailer, but it may also have a pharmacy counter.
Other chemists dispense prescriptions but may also sell a limited selection of healthy and beauty
products.]

HELENS RESPONSE
Helen Dawn knew that the preparation of a one year sales forecast would be a totally
inadequate response to the forecast market developments. To ensure Bronze Adoras
successful future she had therefore made a decision to prepare and propose a strategic
marketing plan for the companys main board of directors. Helen also knew that she might be
facing some quite challenging conversations with her new boss. She hazarded that getting
Nathan James to understand the need for a strategic marketing plan and the investment in
time that this would involve would represent a key first hurdle. And this was before she had
even got around to convincing him (and then the main board) of the significant marketing
investments required short term in order to secure the companys longer term marketing
success. As part of all of this, Helen also knew that if her plan was to succeed she would
need a clear understanding of how her strategic marketing plan would impact on other parts
of the company.

NOTE: This case study is for teaching purposes only. The companies identified herein are fictitious. Any
resemblance to real companies operating in the same sector is purely coincidental.

DR BELINDA DEWSNAP 2015