Strategic Marketing Plan; Beauty and Cosmetics Industry
The ABC Company which was established during the 1960s in America has announced the launch of its new product in the market. The company came into existence by launching its first ever organic foundation for different skin tones and also matching the undertones. Now the company came up with a moisturizing skin care cream which would not only moisturize the face but also reduce the fine lines wrinkles and the cream would be divided between different age groups (Chernev 2018). The categorization would be done according to the people of different age groups. The launched product would be named as Amairoessence. The cream would be a fusion of herbal ingredients and the infusion technique would be adopted from the Korea. As Korean beauty products contains some a few unique qualities in them which makes them different from the other products.
2.1 Mission statement for less than a year
Figure 1: Mission Statement Model
(Source: Created by Author)
The ABC Company has developed the framework of mission statement for the new product Amairoessence. The points to be included in the statement are
- Statement related to the problem: it was related to the problems the new product was going to solve and also meet the needs unmet before.
- Advantages: unique ways that were implemented to meet the needs that had not been met before.
- Targeted consumers: it depicts the consumers the company was targeting.
- Partnership related to business: choosing the collaboration partners for meeting the needs.
- Guidelines related to finance: the guideline includes budget needed for investment, collecting the number of targeted consumers and many more.
- Strategies introduced: it points out the ways the product fits well to the strategy of the company.
- Diverse risks: it describes the risk value of the new product, and the clash of the new partnerships with the old ones and the process of accumulation and adjustment had to be described in this part.
Objectives of marketing
The objective includes an increase in the sale for example attempting to increase the sale of the product Amairoessence by approximately 25.9% by 18 months (Reed 2018). The increase in the rate of profit could be done by targeting the consumers through building the awareness of the brand. Targeting the customers would also help in acquiring the share available in the market. The company targets to acquire at least 20% of the market share within a few months after the launch of the product.
Figure 2: Model of SMART
(Source: Created by Author)
The objectives could be quantified using SMART (simple, measurable, achievable, relevant and time-specific) :
- Specific: The ABC Company has to be specific about the goal of advertising the product Amairoessence. They could set their target to a 9.99% increase in the revenue of advertising after the launch of the product (Al Fahad et al. 2015). After completing their first goal, they have to opt for another 9.99% increase in the revenue of advertising.
- Measurable: the goals of the company regarding the development of the product have to be measurable by keeping the target on increasing the sale by 10% at least by the next year with 0.800% increase of sales in each month.
- Achievable: the company has to have transferable and simple goals so that the developers seem to be more realistic and achievable to them (Calcaterra et al. 2016). The company has to update with the economy, along with the structure of the profit of the old products and relate it to the new one which is Amairoessence that would be launched.
- Relevant: The ABC Company have to make sure that its goals are realistic and correlating with the new product Amairoessence. The company should set smaller goals than moving to the bigger ones. Like for example, the company should hold a campaign related to advertising the new product Amairoessence by specifying the features of the product and reason for buying the product.
- Time-specific: the company needs to set time for completing its goal. The ABC Company have to maintain the time of completion of its goal along with starting to prepare for its new goal in advance to be always a step ahead in marketing its products in the market.
Apart from setting guidelines, outlining the objectives through the mentioned acronym, the ABC Company still holds some risks related to the development of the market Calder, Malthouse & Maslowska 2016). The probabilistic risks include the performance of the product in the after its launch, the uncertainty of whether the product Amairoessence would be able to fulfil the needs of the targeted consumers or not. An uncertainty would linger regarding the probability of whether the product would be able to deal with the task it is supposed to perform and many more.
The ABC Company has targeted the marketing area of New York which was the biggest hub stretches through some parts of Canada and many more. New York also harbours some cities under it like Manhattan and many more. The market area of New York was big enough to provide enough space for the launch of the new product (David & David 2017). As there are many cities under the state, the company would have the opportunity to launch its product Amairoessence. The state along with the cities under it would be able to give the product a chance to be tried out by the citizens. The reason for choosing this state was the presence of the cities inside the state. The more the cities, the more opportunity it would provide for the product Amairoessence to be tried and bought by the consumers. Due to the presence of the cities was also the reason for the launch of the product as it contains the maximum amount of power related to purchasing. The power related to purchasing comes from the numerous street markets along with supermarkets available in the state and the cities.
Amairoessence would face competition from the competitors like L’Oreal, Coty, Revlon and Chanel. The companies which were and still dominating the market was L’Oreal and Chanel. As it is already mentioned above that the market area of New York was vast and most active. Therefore the mentioned companies who are dominating the market would be the most significant competitors would be launched the product (Kerr & Patti 2015). News regulating through focus and trend of the beauty industry of the state was that the companies L’Oreal and Chanel holds maximum revenue related to sale and advertisement and market share. The mentioned competitor companies hold approximately 30-55% of the market share of the state (Kirova 2017). Though during a survey it was stated that the products of the companies still harbour some faults due to which there would be a probability of the slightest decrease in the market sale. Therefore they would be launched product have to develop in a way which would amend the defects of the products of the other companies.
The ABC Company came up with this product Amairoessence after doing a lot of research on the process through which the quality of the product would be defined. The company has to do a lot of research on the process of infusion as well. The company adopted the process of infusion from Korea who is famous for producing best moisturizers. They thoroughly concentrate on the infusion of herbal ingredients to produce such products. The Koreans basically infuses different types of fruits in their creams and moisturizers in the form of essence, toners, lotion, eye cream, serum and moisturizers. The company opts for categorizing the set of moisturizers into groups like toners, essence, serums, sheet masks, lotions and moisturizers (Ratten 2016). Therefore the consumers would get a set of other skin care products along with the moisturizer to complete the whole skincare routine. Besides the moisturizer by introducing the additional products the company wishes to launch a complete set of skin care routine inspired from the Korean products. The infusion would help the customers in getting the perfect moisture for the skin to make it look good and youthful.
Ethics in the marketing process provides the path of governing good behaviour. Evaluating ethics in case of marketing was known to be the best practice ever for the launch and development of the product. The ABC Company could face ethical issues when it offers fake promises by misrepresenting its product Amairoessence in the market. This could harm not only the reputation of the company but also destroy the company forever. Therefore the truth about the product Amairoessence has to be mentioned while marketing the product. The company while spreading awareness about the launched product has to be specific, honest and truthful about the features of the product to the consumers to gain their trust while selling the product. Implications which were referencing to the legal issues points to the company which was not following the laws, regulations and ethics related to the process of marketing. The company has to abide by the rules, regulations and laws when marketing the product through advertising in televisions, social media and many more (Riahi & Moharrampour 2016). The ABC Company could not claim any fake prospective nor promises regarding the product during the time of advertisement.
Figure 3: Core strategy
(Source: Created by Author)
The features which could help in core strategising the launch are:
- Developing a mission statement to objectify the product and connecting it with the SMART acronym to propose a detailed view of the objectives. Spreading awareness about the product Amairoessence by speaking about the quality of the product to the media would be beneficial. Though the company has to have an honest profile of the product would be launched. The company has to be honest while describing the features of the product, and in what way would it be helpful.
- Leveraging the data while performing on the ground by paying the third party for doing a paid promotion is essential to reach those customers who do not use social media all the time.
- Speaking to the core consumers of the company could be beneficial for the launch of the new product Amairoessence. The consumers who have been using the previous products of the company would be enthusiastic enough for the launch of the new products. Therefore abiding them would be beneficial while strategising.
- Taking the help of social media and including the consumers in the process of development would be beneficial for the company (van Scheers & Makhitha, 2016). Though ABC Company has to introduce the process of approaching the customers through try and buy method, the inclusion of the consumers in the process of developing the products could be done by doing a survey where they would be asked about the perfect foundation they wish to use regularly.
The core strategy of the marketing process is pointed out from the objectives of the marketing stated above. The methods of objectives of marketing would only strategise the core strategy.
Figure 4: Mixing of market
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Promoting and communicating:
- The advertisement was done by paying the newspapers, televisions, magazines and so on. The benefits of this paid promotion are outlining the limitations like what to say, what has to be said and pivoting the method of saying it which would intrigue the public in visiting the website and look into the product Amairoessence which isto be launched. The disadvantages it harbours are adding up to the cost of promotion, help in falsifying the product, creating the illusion for undermining values related to social, confuses the consumers and many more. [Referred to Appendix 1]
- Designing the outline of the promotion of sales would help spread the message which would help in launching the product. Encouraging the employees of the company for an in-door sale promotion could be beneficial even for approaching the customers while introducing to the contests related to the promotion. The disadvantages it harbours are brief orientation, increasing in the price of the product Amairoessence which would decline the sale of the product tarnishing the good image of the product. (mondaq.com, 2016)
- Public Relation/publicity creates a credible and beneficial relationship between the consumers and the company. This relation was established through social media and also through offline like distributing coupons, introducing link exchangers. The disadvantages it carries are not keeping a strong hold over the content and releasing of the message, lack of appeal in the message reciprocating the higher cost.
- Marketing directly means approaching the consumer using the try and buy method to introduce the products to the customers. The disadvantages it harbours the wrong approach of the employees could generate a loss to the company, making the customers not interested in even trying the product Amairoessence. [Referred to Appendix 2]
The ABC Company have to develop its strategy according to the merits and demerits of the IMC mentioned above. They have to look into the points and create a message which would be appealing and intriguing to the customers (Vernuccio & Ceccotti 2015). The company has to opt for investing minimum cost in the advertising to take into its good merits and reduce the disadvantages. The company took into all the positive approach of the IMC and reduced the possibility of the negative approach to the minimum. (business.gov.au, 2018)
Pricing of the product:
The pricing of the product Amairoessence should be dependent on the quality of the product. The ingredients included making the product and many more. The theories of literature related to marketing which is used to price the products would be assessing the quality of the product along with testing the product to observe the longevity of the product. The pricing would also be dependent on the pricing made by the competing companies and checking the review of the customers to products of those companies. The company has to state a price which would be reasonable enough to surpass the competitors with its quality and quantity.
CRM (Customer Relationship Management) and Distributed Channels:
The ABC Company have to choose online shopping sites like Amazon, Flip kart to launch its product Amairoessence in the online market. As these are highly popular sites that most of the consumers adhere to. The company would also include CRM which help them in connecting with the customers to approach them and introduce them to the product Amairoessence. According to the CRM, the company has to adhere to the needs of the customers for shaping their products so that the customers are comfortable with the product. The employees of the company have to be pleasant and friendly while dealing with the issues of the customer and also while promoting the product to the customers. (business.gov.au, 2019)
The assignment dealt with the development of the strategic plan for marketing they would be launched the product. The description of the product along with its objective had also been mentioned in this assignment. Objectifying was done through mission statement and SMART acronym. The company had also stated the area of target marketing for the launch of the product. The reason for choosing the mentioned area was because of its massive power of purchasing and massive marketing. Amairoessence is the chosen product which is going to launch in the market and competitive market analysis of the product is done throughout the study. The competitors along with a detailed view on the mixing market had been described. The description of IMC and marketing related to the pricing, channel distribution and CRM had also been described in this assignment.