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Prompt Finalize your marketing plan by adjusting based on comments provided by instructor. Prior to submitting, proofread one more time. MARKETING PLAN 1 Marketing Plan Danielle Mazanti Southeastern university 08/16/2021 I. Executive Summary This marketing plan seeks to outline and discuss the introduction/launch of skin lotion as a new product that will help the company gain a competitive advantage over competing firms. The idea of a skin lotion came about due to a lack of sufficient supply, and most of the available lotions lack dermatological benefits. Market research revealed that most of the skin products are mainly moisturizers and lack medical ingredients (Chin et al., 2018). The research further revealed that there is a significant increase in skin-related problems, and the introduction of medical-based skin lotion will help address this gap. Strategically located in a place where there are few lotion companies, the firm will help meet the needs of customers around. The business acknowledges that there is competition. However, the commitment from employees and the quality of the product will help the product line to stand out from the rest. While it may be challenging at first, the product line will gain momentum over time and stabilize. On pricing, the product will be offered at a friendly price so that customers from different socio-economic classes can afford it. With time, the company will be recognized nationwide for offering high-quality skin lotion. The greatest strength of the company is its motivated staff that will offer the best services to clients, enhancing customer loyalty. II. Business Challenge The most significant challenge in this product line is a lack of medicinal skin lotion supply. If there is, then it is inadequate. A recent study revealed that most of the skin lotions that are claimed to have medical ingredients actually lack them. A company was recently sued for misleading advertisement after mentioning that the lotion has medicinal ingredients yet it does not have. The incident shows that there is a gap that should be addressed as soon as possible in the industry (Hayder, 2017). Today, it is important to acknowledge that customers look for something that stands out from the rest. The offering of a high-quality dermatological skin lotion coupled up with good customer care services is a real deal. It is also important to note that the company already has a strong distribution channel. We are planning to partner with other companies that are founded on health to offer the best skincare to our clients. We believe that the journey will be amazing and challenging in equal measure, but the fruits will be worth celebrating. III. The Market Customers The new product targets all women around the world. The good thing about these products is that it targets any person who is interested with skincare. While men may also use the products, they do not constitute a significant percentage. In terms of age, most consumers are between 13 to 60 years. Very young and very old women may be less concerned about skincare, and therefore 13 to 60 years is the ideal target market. Company analysis Strengths The first strength of the company is its strong social media presence that will help it to reach as many people as possible, informing them about the introduction of a new product. Another strength is a team of dedicated and flexible employees who will help the company attain its strategic goals through the introduction of a new product. Another strength is access to information about the latest trends on skincare that enhances flexibility and makes the company adjust to customer needs within a short time. Weaknesses The first experience is limited experience in skincare marketing since it is the first time to venture into this line of products. The company is also limited by a limited definition of target customers. Collaborators The company will have to collaborate with other service providers to deliver high-quality products and services to ensure they meet the needs of customers. The first partner will be media companies that will help us market and publicize the new line of products to the target audience. One national and one local media house will be used for marketing and publicity. We will also partner with dermatologists who will offer professional advice on skincare routines and help customers make good decisions on the best lotions that meet their needs. A staff of about ten dermatologists will offer professional advice and education physically and online. There will be a platform for engaging with the professionals online and get the required services. Competitors Cetaphil The main competitor, in this case, is Cetaphil that has managed to reach a wider market and built trust with its customers. The mission of the company is to offer skincare products that are non-irritating to clients. The main threat from Cetaphil is that it is already established and may affect our new line of products that is new and less known to the customers (Rashidi, 2021)). However, as mentioned before, it may be challenging at first, but the commitment and dedication of employees coupled up with high-quality products and professional advice will make our company stand out. Business Climate Opportunities The first opportunity the company should utilize is the services from dermatologists that will supplement the high-quality products available. Another opportunity is to tap new markets that Cetaphil has not tapped yet. The company can also offer flexible and friendly programs, especially dermatological advice so that they do not have to pay all the service charges once. Threats The first threat is the main competing firm. There are also other businesses around that offer skin lotion. Also, there is a threat from the perceived image about dermatological skin lotion because, from experience, customers believe that the skin products are not medicinal, but companies advertise to mislead them. IV. The Strategy The strategy The strategy here is New Product Introduction (NPI) that involves the launch or commercialization of a new product after the product development project will be successful. The introduction of a new product will help target new markets, increase the market share, and increase revenue. The company will become more profitable because of the introduction of a new source of revenue. It is also beneficial because the product will generate more attention to the company, especially during the product launching event and the first-time advertisements. Potential customers will become more interested in the company and may start purchasing other products apart from the lotion. The new product is not only valuable to the company but to customers too. Customers will be able to get value for their money by accessing high-quality skincare lotion at friendly prices. Customers will access unique products that will help them rejuvenate their skin while maintaining a youthful look. According to research, skincare is a great concern to women all over the world. One way of addressing this concern is to offer high-quality, non-reactive products that boost women’s confidence and gets them less worried about how their skin looks. The offering The first offering is the different types of lotions for different skin types. This is based on the acknowledgment that people have different skin types, such as dry and oily, and the best way to meet the varying needs is to offer different lotions that meet those needs. The different products will be specifically tailored to meet each customers unique needs based on customer segmentation. Also, skincare products serve different purposes. On that note, there should be lotions for moisturization, prevention of stretch marks, minimizing aging, and so on. Another very generous offer will be skincare education and guidance. According to market research, many women do not know their skin types and the best skincare lotion that suit their unique needs. On that note, the offer of guidance and skin education by professional dermatologists will be quite significant in pushing the product brand (Turner, 2019). Professional dermatologists will be offering professional help as they help customers to choose the best lotion that meets their needs. Communication Plan After a careful analysis, members agreed that the new product line should have a slogan that will help tap markets nationwide. The slogan, Love your skin, was found to be the most appropriate for the product line. The slogan will be an identity and a marketing statement that will make customers get attracted to the products. The decision to have a slogan was based on the idea that it will make the product stand out from the rest. Whenever one thinks of their skin, what comes to mind is the lotion we offer. A launching event will be conducted with a big billboard, capturing the slogan, Love your skin, to attract people. Before the event, we will have done adequate publicity to ensure a lot of people and interested partners are aware of the event and turn up in large numbers. Since the business already has social media channels, it will be easier to reach as many people and partners as possible. During the launching event, there will be free samples for a few people and companies as a way of promoting the product. There will be no entry fees so that no individual or company will be limited to access the event or maybe take part in sampling. After the launch, the companys website will continue marketing the new line of products. Social media pages will advocate for medicinal skincare that will help customers see the value in this new line of products. Continuous advertising and public relations through local and national media platforms will aid in building the brand and reach as many people as possible. The advertisements will target motivating women around the world that they can have confidence in their skin by using the companys products. The communication will be characterized by inspiring and energetic quotes that build women’s self-esteem. Distribution The company will open up two major distribution stores where retail and wholesale customers will easily access the products without disrupting the other lines of the business. V. Budget a. Investment Initial Investment Space $400,000 Raw materials and transportation $500,000 Publicity and Marketing $22,000 Branding and Product design $50,000 Testing and certification $19,000 Launching event $1,000 Continuous costs Marketing $10,000 per year Distribution $8,000 per year Salaries $ 100,000 per year Administration $6,000 per year Research and Development $ 24,000 TOTAL COST $ 1,140,000 b. Return Short-term costs $1, 140,000 for the first year. Short-term sales $ 1, 400,000 for the first year Short term Net Income $ 260,000 Other Resources The company should set aside about $ 3,000 for the motivation of employees as they work hard to push the new product. VI. Conclusion Sincere gratitude for reading the marketing plan. There is a need to address the existing gap in medicinal lotions to cater to womens skin needs. We believe we will create a solution for the community as well as enhancing the companys profitability. We look forward to your support, and any questions/suggestions are welcome. References Chin, J., Jiang, B. C., Mufidah, I., Persada, S. F., & Noer, B. A. (2018). The investigation of consumers’ behavior intention in using green skincare products: a pro-environmental behavior model approach. Sustainability, 10(11), 3922. Hayder, N. B. (2017). Deceptive Advertising and Purchase Behavior of University Students: A Study on Skin-Care Products in Bangladesh. Global Journal of Management And Business Research. Rashidi, R. I. (2021). ENT 530 Social Media Portfolio: Cetaphil Skincare. Turner, D. (2019). Adaptive skincare. Professional Beauty, (JulAug 2019), 20-21. SAMPLE MARKETING PLAN I. Executive Summary This plan will summarize the launch of a new service that would cater to children 2-12 as well as their caregivers in the Newnan, GA area. Currently, there is not a sufficient supply of quality entertainment for children. We want to provide a modern space that supports independent and group play amongst children, avoiding the use of technology and encouraging the use of imagination. Caregivers would be able to remain on premises, but trust the care of their children to our staff. They could then utilize their free time as they wish, all while being able to view their children through a glass wall. We feel that our current business, a coworking space, has provided us with good knowledge of the market. Connections formed through this business as well as our background in education, will enable us to create this service better than someone just entering the market. Current competition does exist, but serves a different segment of the market. Their service is a lower cost and quality. We will be able to bring value to the market through this service, benefiting our customers in ways that other businesses aren’t. It will be a one-stop shop for children’s entertainment, providing both a play space and a learning space. With a price of $15 per visit and discounts for monthly and yearly memberships, we can meet the needs of our customers in a flexible way. To ensure that the launch of the service goes well, we want to do both a soft and hard launch. The soft launch will allow us to refine the service prior to launching to the open public. With these efforts, we expect to reach a net income of $46,700 in our first year. II. The Business Challenge The challenge we see in the market is that there is not a sufficient supply of quality entertainment for children 12 and under. Creating a space that entertains and challenges children, both physically and mentally is our goal. This new service would cater to children ages 2-12, as well as their caregivers. We want to create a modern, well- equipped, flexible space that allows children to independently explore and learn, unplugged. Children would have access to an indoor obstacle course, playground, books, music, educational toys and classes. Their caregivers would have access to a soundproof, glass-walled room from which to view their children, but to also have some “me time” to relax, catch up on work, or meet other caregivers. They would not have to commit to a set amount of days or hours spent with us. We want this to be a place that is accessible and flexible to meet the ever-changing needs of our customers. We plan to collaborate with playground and décor design companies to make the most of our space, utilizing square footage in the best way possible. III. The Market a. Customers: Children - ages 2-12, living within a 15-mile radius of zip code 30265, seeking entertainment of various types in one location Adults - any age; living within a 15-mile radius of zip code 30265; caregivers of children; disposable income to spend on entertainment; seeking high quality entertainment for their children, seeking an “unplugged” lifestyle, a flexible schedule, some “me” time while knowing their children are being taken care of. b. Company analysis: Strengths • Existing coworking business in this market • Educational background • Prior experience developing work space that will transfer to development of play/learning space Weaknesses • Leadership to focus on two businesses • No prior experience developing children’s programming c. Collaborators: Space Design - We will partner with Landscape Structures to design a one-of-a-kind indoor play space that encourages age appropriate development for 2-5 year olds and 6-12 year olds. We will research and interview a variety of design companies to assist in the modern décor design of our learning space to ensure correct ergonomics and aesthetics for the children. Program Design - We will hire consultants who specialize in Elementary Education and Physical Education to help us design our programming. Distribution/Marketing/Selling – This will all be handled internally by our part-time and full-time staff of about 10 people. d. Competitors: Children Connect This would be considered our most direct competitor due to the variety of programs they offer. Children Connect’s mission is to engage children and families in the joyful discovery of connecting to the world around them through meaningful play. We have similar missions and values, but our service will be a higher quality service. This business is very small, requires adult supervision for most daily activities, and has limited programming. They do have future plans to expand; however, the type of programming they provide is different than ours will be. While they may react to our launch by expanding their programming quicker than planned, we do not foresee any issues with this on our end. Our consumers may overlap somewhat, but our quality and angle we’re taking will differ enough to each attract our own segment of the market. We do not want to hurt their business, but simply offer a new level of entertainment attracting a different segment of the market (childrenconnect, 2019). e. Business Climate: Opportunities • Utilize current coworking customers to gain customers and spread information about our new service through grassroots marketing efforts. • Offer an indoor play space for hot summer months and cold winter months. • Provide a flexible offering that allows customers to not have to commit to a monthly or yearly fee, increasing our potential market. • Create a place that people come to in order to unplug, committing to a movement that encourages children to be imaginative and social without the use of technology. Threats • Businesses in the surrounding area, who currently focus on only one form of entertainment or education, expanding their offerings. • Parents being tentative about their children adjusting to an “unplugged” environment. • Issues with programs that we develop or injuries during play. IV. The Strategy a. The Strategy: We wanted to serve an underserved area of the market we are currently in. Children do not have enough quality entertainment in our market, but this new service will address this issue. The strategy of creating a new product for an existing market we’re already serving is called Product Development. We feel that the knowledge we already have about this market will help us create this new service in a way that other businesses just entering the market would not be able to. While there are other markets surrounding us that could also use this service, we want to focus on our current market to introduce and perfect the business model before we would consider market development later on down the road. Diversification would be too risky for the level of investment required for this type of service. We know our current market and feel comfortable with the level of commitment and investment required of this service due to our experience in this market. The value this service will bring to the market is that it will be a one-stop shop for children’s entertainment, providing both a play space and a learning space. Children will be able to play in a unique environment without technology, increasing their social skills and confidence in their abilities. Exposure to new subjects will add to their experience as a child, possibly fostering a love for a new subject and aiding in their career choices as an adult. Adults can relax knowing their children are being cared for and challenged while they take some time for themselves or connect with others. b. The offering: Features • Indoor play space catering to ages 2-5 and 6-12. There will be two custom play spaces designed for each age bracket in mind. The 2-5 age group will have a variety of small obstacle course type structures and other structures fit for their age with plenty of space for imaginary play and reading. The 6-12 age group will have a large multipurpose play structure with typical playground activities, obstacle course structures, books, and simple toys. We want the activities to be ones they can’t find at a typical playground, but also somewhat familiar. The design will be modern and simple. Creating these custom structures will allow us to have a mesh of the two, familiar but challenging. We want to encourage group play and have activities that keep the children’s attention, time after time. A child will tire of any toy, but if group play and imagination is at the center, the activity will be new each time! Instructors will be charged with keeping the spaces safe as well as suggesting group play activities throughout the day. Cleanliness is a top priority, which is a secondary reason we are going to have simple structures and toys, ones that are quick and easy to clean. • Classes that cover a variety of subjects like art, music and theater, which some children are not getting enough exposure to in school, as well as some unique skills to teach children such as Imagineering and problem solving. Classes will be offered for ages 2-5, 6-9, and 10-12. Class subjects will be on a weekly rotation. • Caretaker space with one-way window for viewing of children and soundproofing (caretakers would need to remain on premises). Space will include comfortable seating, outlets for computer and phone charging, a few workstations, and complementary bottled water. Once a week, we will host a caretaker session in this room to foster community and support. The topics during these sessions will range from motivation, budgeting, self-care, and free discussion. Benefits • Children are able to play in a unique environment without technology, exercising their bodies and minds. This will increase their social skills and confidence in their abilities. • Children can learn about subjects and skills not offered at all or as extensively as other subjects in their schools. This exposure will add to their experience as a child, possibly fostering a love for a new subject and aiding in their career choices as an adult. • Adults can relax knowing their children are being cared for and challenged while they take some time for themselves or connect with others. Pricing • $15 per visit – Covers all day play and classes. Slightly higher than competition due to higher quality and programming, while still maintaining an affordable price for children’s entertainment. • $100 monthly membership – Covers all day play and classes, unlimited days within a month. $20 discount based on average of visiting 2 times per week. • $1100 yearly membership - Covers all day play and classes, unlimited days within 1 year of sign-up. $460 discount based on average of visiting 2 times per week. c. The communication plan: Launch – We will host a soft launch and hard launch. The soft launch will be invite only. It will be utilized to gather initial thoughts and make improvements prior to the hard launch to the open public. We will extend invites to local influencers, educators, leaders, and entrepreneurs who have experience working with caregivers and children. We will do so through leads from our existing networks as well as social media. We will reward their attendance with a free 3- month membership card, so that if they like it, they can return with their children and continue the experience, encouraging them to share what they like about the service via their channels of influence. The soft launch will also prepare us by helping us to refining our target market and ensure we are ready for a specified launch date. The hard launch will be a widely-marketed, week-long launch. We want it to be a week-long event because we want to present each of our programs as a part of this launch, not just a few on a single launch day. We will market this grand opening calendar for at least 1 month, inviting people via social channels, influencers, schools, and key partners that we build throughout the creation of this service. We will post grand opening materials in our windows and hand out invite cards the week leading up to the grand opening. The grand opening calendar will be a sampling of all programs we’ll offer on a monthly basis. Programs offered this week will be a sampling and, therefore, shorter, to allow for more people to be able to preview more of our service during this week. Regular fees will apply. Ongoing - Our primary methods of communication moving forward will be social media and our website. We know that remaining top-of-mind to our consumers is key and having an active, relevant social media presence is crucial in this effort. We will plan a monthly social media calendar 2 months ahead of the prior month to ensure our communications are consistent, yet vary in content. We will host giveaways to free visits and classes through social media. Ensuring that our website is user-friendly and offers the information our consumers are looking for is vital. It will be simple and always up-to-date in hopes of cutting down on unnecessary communications and misunderstandings. We will offer live chat on the website to ensure ease of communications. Customers will be able to sign up for our monthly newsletter via our website, which will include the current month’s calendar as well as any news, including improvements or changes to our schedule. d. Distribution: We will have only one location in Newnan, GA. Customers will be able to come in anytime to play and learn in our open spaces. They can reserve spots in classes ahead of time or walk-in if there is still an open spot. V. Budget a. Investment: Launch Costs Renovation of Space (structural and paint) $30,000 Furniture $1,500 Play Space Equipment and Supplies $15,000 Class Space Equipment and Supplies $7,500 Caretaker Space Equipment and Supplies $500 Office Space Equipment and Supplies $1,500 Marketing $25,000 TOTAL $81,000 Ongoing Costs Cleaning $3,500/year Lease $60,000/year Maintenance $500/year Utilities $6,000/year Marketing $10,000/year Part-time Employee Pay $62,400/year Full-time Employee Pay $62,400/year Play, Class, Caretaker, and Office Space Supplies $5,000/year TOTAL $209,800 b. Return: Short-term Sales $337,500 Year 1 (average of 50 children per day 9 months/year and 150 per day 3 months/year; 25 days per month) Short-term Costs $290,800 Year 1 Short-term Net Income $46,700 Year 1 Long-term Financial Goals Increase average children per day by 50\% within 3 years. c. Other resources required $5,000 to fund a focus group to gather information from local influencers, parents, caregivers, educators, leaders, etc. VI. Conclusion Thank you for taking the time to read our marketing plan. Our community has a need for higher-quality child entertainment, and we believe that we have created a great solution, one that we serve both the children as well as their caregivers. We hope you will support our goals and help us meet them through monetary investment in this service. Please reach out with any questions. References childrenconnect. (2019). childrenconnect. [online] Available at: https://www.childrenconnectmuseum.com/ https://www.childrenconnectmuseum.com/ FEEDBACK FOR FINAL DRAFT Overall Feedback Executive Summary: This needs to be a summary of the plan, mentioning the highlights of each section. Business Challenge: Good. Customers: Income range of your target customers? Why only women? Are you specifically targeting women with certain features? Company Analysis: Strengths #3 and weakness #2 are external and belong in the business climate section. Continue to think through strengths and weaknesses internal to your business and product.  Collaborators: Who will you partner with on the manufacturing, distributing, and sales? Competitors: Cetaphil is a budget line of skin care. If you plan on offering medical-based skincare, you would likely compete with more expensive products. Research more direct competition. Business Climate: Im not sure what you mean by service charges. Strategy: Refer back to what you submitted previously. Here is the feedback I gave: In regards to your mission, what is your purpose for this product in the market? What unique purpose do you hope to serve in the market? What do you hope to change (your end goal)?  Offering: Good detail on the features. Specifically list the different variations youd have of the skin lotion. You must then go on to discuss the benefits of these features and the pricing as well as how you calculated it. Communication Plan: Where will the event take place? What types of advertising will you use for your ongoing communications? Be more specific here. Distribution: The new line of products will only be sold in these two locations? Where will they be located? Investment: Your costs do not align with the information youve provided earlier in the plan. Recalculate marketing and inventory costs (both launch and ongoing). Make sure these align with your communication plans and sales estimates. Return: Sales should be first. Explain how you calculated it. Other Resources Required: Good idea. Conclusion: Good. Structure: Good. Support: Good.