Thursday, March 25, 2010

Implementation Evaluation Control

Implementation
• Begin collecting raw materials for full scale launch
• Create a small stockpile of finished product to prevent shortfalls
• Launch to test markets in New York and Los Angeles
• Upon success in test markets, launch to the remainder of the United States
• Collect as much data as possible from our clients to make informed decisions in the future about changes needing to be made.

Evaluation
• Continuously evaluate client satisfaction levels to maintain stated objectives.
• Increase training of sales associates in areas that are lacking in market saturation.

Control
• Routinely conduct a marketing audit to ensure we are on goal for our objectives.

Marketing Mix

Product
Our product is an all-natural mix of essential oils, which not only subconsciously draw men to the wearer but also gives the wearer a sense of confidence and power.

Distribution
Our product will be in every upscale mall and retail store in the United States. The majority of our raw materials are made in the U.S. but shipping those that are not will most likely require flying them to us. The oils could easily be sent by boat but the glass bottles will require special care in their shipment. Once the finished product is ready for shipment to our U.S. locations, they will need to be shipped in an upright position in a temperature-controlled environment. Initial demands from stores should be low while we build our clientele and as such storage of product on site should be minimal.

Promotion
Promotion of our product will not include any type of visual or audio advertisement outside of the respective areas it is sold. Our product is not for everyone and as such we do not want to attract the wrong crowd with our advertising. “The salesperson should know more about customers than they know about themselves.” (Lamb, Hair, McDaniel, MKTG pg 255) The majority of our advertising will be spent on personal selling within the stores we are sold in. In store trials and word of mouth from happy customers will be our greatest tools at keeping our high-end product from becoming a generic product.

Price
“Consumers tend to rely on a high price as a predictor of good quality.” (Lamb, Hair, McDaniel, MKTG, pg 275) While our prices are no where near the very top of the scale, compared to other products that promise to do what our product can do, we are a high priced item. This high price compared to the actual value of the product however is relatively low and our customers should be able to discern the value quickly.

Target Market Strategy

Our Target Market Strategy will be a concentrated targeting strategy. “With a concentrated targeting strategy a firm selects a market niche for targeting its marketing efforts.” (Lamb, Hair, McDaniel MKTG, pg107)

This strategy will allow us to put all of our effort into making our objectives without being distracted by other markets that we may not be ready for yet. We should also find “…meeting the needs of narrowly defined market segment is more profitable than spreading resources over several different segments” (Lamb, Hair, McDaniel MKTG, pg107)

Situation Analysis

Strengths:
Being created in an up to date factory gives us the competitive edge of having fewer factory workers, which lowers overhead costs. Limiting the number of people who have total knowledge of the process to those who monitor they full system also cuts overhead by needing non-specialized employees to do the simple daily operation tasks in their respective areas.

Weaknesses:
Bulk supplies of essential oils are hard to come by and delays in acquisition could slow production and sales.
Handmade bottles from Egypt give us our distinctive look but are also an area for bottlenecks with only so many bottles being able to be produced in a given day.
Being an unknown in the industry will mean we have to rely solely on quality of our product without any reputation to hold us up while we gear up sales. “People in the United States today are piecing together component lifestyles.” (Lamb, hair, McDaniel, MKTG pg 33)

Opportunities:
Being of a similar make-up to higher end fragrances, but yet at a price that resembles lower price fragrances, we should be able to infiltrate the market efficiently during this low economic time.

Threats:
People are putting off buying luxuries and wary of scams with the current state of things and as such may feel our product is too good to be true. “A recession is a period of economic activity characterized by negative growth, which reduces demand for goods and services.” (Lamb, Hair, McDaniel, MKTG pg 40)

Marketing Plan Objectives

Our Objective is to launch our flagship product with 80% market saturation by the end of the 4th year and maintain a satisfaction level of 90 percent through each year.

Monday, March 15, 2010

Week 9 EOC

The idea of McDonalds selling a $10.00 hamburger is one that is unreasonable to anyone that has ever eaten there but it is not impossible. During our current economic times, most restaurants would be hard pressed to sell a burger for that amount. However, in terms of value, would a $10.00 hamburger be much different in the eyes of someone willing to pay $6.00 for a Carls Jr. hamburger.

There are certain factors that would need to come into play before a chain store like McDonalds would be able to come out with a $10.00 hamburger and sell it for profit. The first step in launching this never-seen-before burger would be developing the way its made. McDonalds has the stigma of being rather unhealthy and cheap, but most people over look the possible damaging health problems for the otherwise inexpensive meal. As it would go, there is not a hamburger made in the U.S. at a fast food restaurant that could be considered even mildly healthy. Changing this impression would be the life or death of this new burger. "...a firm that introduces a totally new product with no close substitutes will have considerable pricing freedom."(MKTG, Lamb Hair McDaniel, Pg 278)

In our current state, healthy items are expensive. A pound of fatty hamburger costs less than half as much as a pound of fat free burger. Green picked tomatoes that are chemically processed to speed up ripening and give them their brilliant red color cost a fraction of daily farming of vine fresh organic tomatoes. Making simple ingredient changes that make the burger a more healthy substitute to a greasy dollar cheeseburger will also drive up production costs and therefore drive up the price. Going a step further and incorporating healthy growing and farming procedures such as grain fed cattle in open ranges as opposed to corn fed cattle in feed lots will also do more to clean up the image that McDonalds has created over the years and bring the ever growing "green" community back to their stores. "Customers determine the value of a product (not just its price) relative to the value of alternatives." (MKTG, Lamb Hair McDaniel, Pg 283)

However, McDonalds would not be able to successfully launch just one "Healthy" burger to change its value. The whole product line would have to be substituted with the new ingredients and all of the prices would have to raise a little to cover the increased cost.

Once the image of the company changes to one more in tune with the environment and the health of its customers it has essentially become a new product. As I stated before, new products have the ability to price higher than a product with many alternatives. McDonalds has changed the way we see food in the world, the way its grown, the way its delivered, the way we live. It will take a company like McDonalds, to create a mass change to a healthier lifestyle, a healthier community, and a healthier planet.

My USP compared to 3 others, Week 8 EOC

Primal for Her
"Female Pheromones
Androstenol is the female human pheromone that helps attract men. Seducing men is easier than ever when you fill the air with your female human pheromone scent. Remember when Fred Flintstone used to smell the alluring scent of bronto-burgers cooking, and he would float toward the source of the powerful smell? That, in an exaggerated sense, is how men respond to female human pheromones.

Once men detect the female human pheromone scent, they subconsciously become more attracted, more receptive, and more willing to give you attention. This behavior has been observed in scientific studies conducted on the effects of human pheromones.

Now you can harness the sexual attraction power of the female human pheromones and start attracting the kind of men you truly desire."

http://www.humanpheromonestore.com/

Pheromone Perfume by Marilyn Miglin

"Pheromone is a balanced blend of 179 rare and expensive essences. The essential oils are derived from flowers, wild grasses, exotic bark, seeds and rare wine resins. No one ingredient predominates; it is a true blending of full bodied florals, exotic green notes, spices, and wood tones."

http://www.parfumsraffy.com/women/pheromone.html

Bare Essence Pheromone Perfume

"Bare Essence Androstenol for Women is a pheromone-based fragrance. Pheromones are
nature's sex signals. While men may not consciously notice this fragrance, they cannot help but to be affected by it. Bare Essence has a light yet provocative fragrance, and uses pheromones to make you irresistible.

Use Bare Essence pheromone-based fragrance to draw men to you like bees to a flower!"

http://www.shopinprivate.com/barespherfor.html

"Her Little Secret" has Unique Selling Propositions that are closest to the Marilyn Miglin perfume. Our most unique point is that our product is as powerful as any on the market with a price tag that allows the average consumer to purchase it. We are able to do this by simplifying the mixture. Whereas Miglin's "Pheromone" has over 179 different oils and is priced at $50.00 per 1/4 ounce, we mix together 6 essential oils to achieve the same result and sell 6fl ounces starting at $75.00 a bottle. The other two "perfumes" use synthetic human pheromones to create their attraction and are mixed with an alcohol base. The potential problem with these two is that while the synthetic pheromone may be alluring to some people, others will not respond to it at all because there is no enhancement of the individual's particular scent. These two retail at under $20.00 per 5oz bottle.