Skin Care

Introduction

For many people, vanity is as necessary as food and shelter. Vanity, when satisfied, gives some sort of self-assurance that a person would feel good about themselves in a very competitive world. In this case, vanity is measured through the physical appearance of the person. He/She has to present himself/herself as acceptable as possible based on other people's perception. In the Filipino culture, a "perfect" beauty would include a "flawlessly-white" skin.

Case Background

Mr. John Collado, the newly-hired Product Manager of Skin Care, Inc. was looking for the perfect gift for his daughter's graduation day. He and his wife were inside the SM Megamall for a possible choice of gift. He was captured by his observation of the people lining up to avail skincare services from another company that offers way cheaper prices than Skin Care, Inc. gives.

Back in his office, he concluded that Skin Care, Inc. was the number one clinic to go to for skin treatments. On the other hand, several competitors mushroomed from different places offering cheaper prices putting them on the second place for 2001. He is worried that with the aggressive entrance of the competitors, they will loose their current standing and market share.

He thought of three alternatives which might give clarity to his present problem. 1. Lower the prices compromising doctor fees and other services. 2. Focus on the higher end market and give priorities for liposuction, peeling and dermabrasion, etc. 3. Maintain current pricing and educate the public of their services through

ads.

Company Background

Skin Care, Inc. is one of the three subsidiaries of ABC Group of Companies, a holding company: SKINCARE- skin and hair clinic, XYZ Miller- marketing arm of ABC group of companies for Skintel and Regroe products; SKINPHARMA- manufacturing arm of all products sold to Skincare and XYZ Miller.

Dr. Hinson Bineda started the company on 1973 as a private skin clinic in Tondo, Manila. Three years after, he incorporated the company and become the President and one of the major stockholders. In 1979, he moved to Capitol Medical Center and later on 1984, registered the clinic under the name Skin Care. In an effort to bring the services to more people, he opened clinics in shopping malls, making him the first to bring skin clinics to the malls. Twenty-one clinics have opened since then in the different malls.

Branches Year Opened

Capitol Medical Center 1979

MGF Champaca Bldg. 1988

Greenhills 1992

SM City (North Edsa) 1992

SM Megamall 1992

SM Centerpoint 1992

Harrison Plaza 1993

Tutuban 1993

Cebu 1994

Ayala Alabang 1995

SM Southmall 1995

SM Bacoor 1998

SM Fairview 1998

Park Square 1999

SM Iloilo 2000

SM Manila 2000

SM Pampanga 2000

SM Bicutan 2001

SM Sucat 2001

SM Novaliches 2001

SM Metro East 2001

From the wide and fast expansion to Skin Care, it became the major income generator of ABC Group of Companies.

Vision and Mission

Skincare, Inc. aims to be the leading company offering the best skin and hair care services in the country. This is evident in their vision and mission statements.

"To be the top skin and hair clinic and "cosmeceutical" company in the Philippines."

"We are an organization dedicated to provide customer satisfaction through the rendering of professional dermatological services and the delivery of high quality products"

Services

The clinic offers a wide range of medical and aesthetic services. Medical Services include laser treatment, botox treatment, peeling, treatment of allergy and tumors, treatment of skin and hair diseases, acne treatment among others. Aesthetic Services include plastic surgery, weight loss program, medical facial treatment, skin rejuvenation treatment

They also sell a number of skin and hair care products. Services are medium-priced as compared to other clinics. All clinics have registered medical dermatologists administering the services.

Positioning

Most patrons of the clinic belong to the B and C socio-economic class. This is because of the higher prices they charge for their services. Professional servicing is their leverage for charging higher prices. Skincare is positioned in the middle of the high-end and low-end clinics.

Marketing

Skincare widely uses advertisements in the form of major broadsheets and glossy magazines. They also use television shows to promote the clinic. Skincare accounts for the 2nd highest spender in the industry in advertising and promotion. Media spending expenditure