SCRUB SOAP LLC: Marketing Plan

SCRUB SOAP LLC

Executive Summary

The marketing plan will outline all the marketing efforts to promote sales for the product. Since the product is new in the market, its strategic planning will only cover one year after which there will be evaluations and the necessary changes will be made (McKeever, 2011). The market plan will assist in focusing on the resources that are available and making a good plan that will promote product growth after since the marketing plan implemented will factor in current internal and external factors. The marketing plan will give control over the product and some of the objectives include; identifying the target market and how the product will reach them, competitor analysis, SWOT analysis, PESTEL analysis, and unique branding. The marketing plan will be flexible and will grow as the product grows in the market. Thereafter, it is anticipated that the marketing plan will bring forth productive impacts including shareholder returns, profitability, as well as return on investment (McKeever, 2011).

Investing in an effective marketing plan is vital and will increase returns on investment and profitability in that the sales will be boosted and the profit margins will increase. It will be possible to convince customers that SCRUB Soap is the best product for them and its price is reasonable (Lancaster & Massingham, 2011). The marketing plan will be essential in determining demand, wants and needs of the consumers, selecting strategies that optimize on desired results, and assessing competitor strengths. These measures ensure that the product’s design and marketing is effective, which will subsequently lead to increased shareholder returns, profitability, and return on investment. It is expected that the volume of sales will be very high, which will bring in a lot of profits.

Environmental analysis

Competitive factors

There are many prominent companies that deal with beauty products such as Soap in the intended marketplace. in this regard, it is expected that there will be stiff competition. However, the product will be placed strategically so as to curb all the competition (Lancaster & Massingham, 2011).

Economic factors

The economy is unstable and we are currently the country is recovering from an economic recession. As a result, people have great concerns about the future. This reduces and resists their purchasing intention. Their purchase decisions may be suspended (McKeever, 2011).

Political and Legal factors

Being a consumer good, the product will be required to meet the overall safety requirements. This requirement implies that the product should be reasonably safe. Breaching the safety requirements can lead to fines of up to 100,000 dollars and one year imprisonment.
Technological forces

People are presently able to use the internet anytime and anywhere through wireless and wire broadband connections including 3G, WiMAX, and WiFi. In addition, the use of emails, text messaging, and social media is very vital in reaching customers. Customers will be able to find adequate information about the product online. The Soap’s ingredients are safe and natural due to advanced technology (Luther, 2011).

 Sociocultural forces

Soap are very important to people in the United States since there is a keen concern on appearances. People have a higher likelihood of comparing themselves to their friends. Young females are increasingly concerned about their appearances and this has increased use of Soap. The young generation of consumers who are college and high school students mostly use Soap before going to hang out with their friends.

Primary and secondary target markets

The primary target market comprises of young consumers who are learning to use Soap while the secondary target market is made up of the already existing customers who have been using other products.

Branding strategy

SCRUB Beauty Products is the existing brand name that will create SCRUB Soap. Such a brand extension will assist in leveraging the existing brand loyalty and customer base so as to increase profits on the novel product offering. This is a strong association and it is expected it will promote the parent brand (Luther, 2011).

Performance analysis

Customer value

            This will be determined by seeking the consumers’ attitudes on the non-operational activities associated with the product and company. Customers will be surveyed on the product’s position and place in the community, if it embraces competition fairly, and its environmental protection’s stances. The company will make tax-deductible donations to all local charities regularly and attend community events so as to achieve a stronger customer value of the product (Wood, 2011).

New product adoption rates

            This will depend on opinions connected to value, preference, quality, and price, and will depend on customers’ image about the product. A positive customer image will lead to good exposure and increase the chances for shareholder investment (Wood, 2011). The marketing objectives will include increasing the product’s perceived value, establishing SCRUB Soap as the quality standard in the market, and persuading the customers so that they choose the product as a ‘preferred choice.’ The product’s price will be lowered slightly while maintaining its quality so as to increase the value image.

Rate of growth compared to the market and competition

The product will be positioned in a manner that the customers will always rank the product high compared to other similar offerings from the competitors. The position will be created actively so that competitors are not allowed to influence the opinions of customers. The price and product will be established as an equivalent to major competitors’ products. The product will be marked as the leader in the niche market and the vanguard in all new markets. If resources reduce, specializing will be used (Lancaster & Massingham, 2011).

Customer engagement

Trailblazer and a positive image status can only be valuable if the customers are well informed about the product. It will be gauged of customers are informed about the product’s activities in the marketplace. Customers will be asked to rank top 5 products in the industry in surveys. If the survey does not the register the product in the rankings, more effective advertising will be implanted (Linton, 2011).

SWOT and needs analysis

One of the strengths is that the marketing plan is very flexible and this will enable making necessary and impromptu changes depending on the market. Second, having current knowledge on the competitors’ weaknesses and strengths will be beneficial and will promote competitiveness in the marketplace (Wood, 2011). There will be a special marketing and sales personnel who will assist in marketing the product to customers (Wong, Radel & Ramsaran-Fowdar, 2011).  Information will be gathered regularly regarding any changing customer needs and on sales. The product’s images vary differently from the competitors, natural products will be purchased from poor countries at low costs, and there will be a diversified geographic presence. Some of the weaknesses that may be faced include reducing profitability due to the operating cost structure’s inefficiencies, weak performance in the beginning, and intense competition related companies.

One of the opportunities is that the majority of the competitive companies are known to sell products that have dangerous metals including lead but SCRUB is made purely from natural products and without any additives. Another opportunity is the positive image, which will make the product gain a greater market share. There is also an opportunity with technology and with the increased advent of online searching, many people search for information online and spend time online for entertainment and chatting. Online promotion will be maximized, which will ensure capturing those people at relatively low cost. The product is multiple-function and has sun care function, which will increase its usage and increase sales (Wong, Radel & Ramsaran-Fowdar, 2011).

The product advocates ethics and is against all animal testing while all the competitive companies support it. This will influence the product’s image and which could become a major threat. There are also many companies that are fighting for a market share in the Soap industry. The increased competition might make companies to reduce their selling prices as well as profit margins so as to increase their market shares. The economy is also very unstable and expected consumers may reduce expenses and save for the future. This might reduce sales.

Marketing strategy- 5 year plan

The marketing strategy will be implemented for five years after which the appropriate changes will be made (Wong, Radel & Ramsaran-Fowdar, 2011).  A time frame of five years is appropriate since it is adequate time to assess and incorporate new marketing and advertising strategies that use innovative technologies. In addition, trends in the market that have an influence on the competitiveness of SCRUB Soap and have evolved within the 5 year period will be assessed and proper changes made. This includes new products that have come into the market and new competitors (Richardson & Gosnay, 2011).

Product-market specification

The users are females that prefer environment-friendly and natural products. Users will constitute of both online and offline. A majority of them will be young aged and will have little tools and skills about Soap. Social needs will prompt them to learn about them.

Market segmentation

The market will be segmented based on behavior and demographics descriptors. With demographic segmentation, the customers will be segmented by age and there will be two groups; adults and young age groups. With behavioristic segmentation, there will be advanced and beginners users. Young beginners will form the largest population group (Perreault, Cannon & McCarthy, 2011).

Targeting

The target is females aged 18-49 years who are computer literate. They should also be pursuing beauty but with limited knowledge on Soap. Potential users are first time Soap users and existing customers who use Soap.

Positioning

The differentiation strategy will be used to position the product as a responsible one through promoting its passion; rejecting animal testing, supporting community trade, activating self-esteem, defending human rights, and protecting the planet. The product’s perceived images are natural, caring, and responsible (Linton, 2011).

Services; online consumers can ask Soap advisors questions online. In addition, they can chat as well as exchange information via the online forum with other members.

Price; there will be use of fixed price but the price will be relatively low compared to the competitors’.

Place; the product will be sold in major supermarkets where customers can purchase the product conveniently (Linton, 2011). A banner with a hyperlink will be placed online on SCRUB Beauty Products’ main page. Therefore, customers will be able to see product information and the video seamlessly (Kennedy, 2011).

Promotion; Offline promotions will include public relations, counter leaflets, print advertisement, roadshows, and short text messages while online promotion will include direct marketing, internet advertising, sales promotion offers, and marketing public relations.

Positioning statement

For females aged 18- 49 years with dry damaged skin and with the belief that they can never have truly smooth and healthy skin, SCRUB is the Soap that offers healthy and softer skin since it penetrates the skin cells. The positioning statement will be in operation for five years since it is strong enough to attract many new customers. Any changes in customer needs will determine it change after the five year period.

 Marketing science of customer behavior

The purchasing behavior of consumers is influenced by varying personal, psychological, social, and cultural factors. Usually, social and cultural factors determine people’s wishes. Presently, anyone including girls, boys, women, and men always use it. On the same note, a majority of these go beyond merely selecting it for custom or functional characteristics. The market is currently flooded with products that are specifically designed for women. SCRUB Soap’s appearance rejects the notion possessed by many people that Soap is necessarily inspired and directed by women (Chernev, 2011).  There are many skin care products in the market that target all social classes. The products will cost less compared to other soap and it will still convey the idea of a highly quality product that can be used by women in all social classes. Social classes possess varying preferences of products and brands and in this regard, dialogues that match the target market will be put in posters. The number of family members and the family itself play a great role in determining buying behaviors and decisions, as well as direct consumption patterns. Parents and their family needs’ knowledge determine the indirect influence. The Soap can be used by the entire family and this creates an unmet need for the whole family, which is a very feasible and interesting market to enter (Perreault, Cannon & McCarthy, 2011).

References

Chernev, A. (2011). The marketing plan handbook. Chicago, IL: Cerebellum Press.

Kennedy, D. S. (2011). The ultimate marketing plan: Target you audience! Get out your message! build you brand!. Avon, Mass: Adams Business.

Lancaster, G., & Massingham, L. (2011). Essentials of marketing management. London: Routledge.

Linton, I. (2011). Marketing plans: What to know and do to make a successful plan. Harlow, England: Pearson Prentice Hall.

Luther, W. M. (2011). The marketing plan: How to prepare and implement it. New York: AMACOM.

McKeever, M. P. (2011). How to write a business plan. Berkeley, Calif: Nolo.

Perreault, W. D., Cannon, J. P., & McCarthy, E. J. (2011). Basic marketing: A marketing strategy planning approach. New York: McGraw-Hill/Irwin.

Richardson, N., & Gosnay, R. (2011). Develop your marketing skills. London: Kogan Page.

Wong, H. Y., Radel, K., & Ramsaran-Fowdar, R. R. (2011). Building a marketing plan: A complete guide. New York, N.Y: Business Expert Press.

Wood, M. B. (2011). The marketing plan handbook. Boston: Prentice Hall.