Marketing plan for Arimounts’ ‘Masque’ Deodorant
Market Summery
Arimount, a well-known beauty and grooming company that has been in the hygiene market for 20 years with an average return on investments seeks to introduce ‘MASQUE’, a deodorant that can last up to five days- even after a shower, into the market. Arimount believes that its 20 years experience in the hygiene market offers leverage as far as consumer information is concerned because pleasing the customer always comes first.
Target market
Men
Women
Teenagers
Persons between the ages of 13-40
Marketing Demographics
Geographies
‘Masque’ is not limited to a specific geographic area. Since the need body hygiene is universal, masque aim not only to serve its users regionally but at an international level.
Demographics
‘Masque’ is a unique deodorant in that it does not target a single group of buyers but is available for all groups of buyers. Its target clients will be anybody who wants to maintain proper body hygiene. However, its biggest target client will be the people who are unfortunate enough to be born with natural body odor.
Marketing Strategy
Masque is a simple deodorant that is not limited to any single gender or age. However, our main target groups as far as age is concerned are ages 13-18 and 19-40. It is not limited to those who desire a clean hygienic look but also caters for those that have problems fighting body odor. It also targets persons who have to work for long hours and have an active lifestyle but who desire to maintain a clean cut and fresh scent through out.
Potential target markets’ expectation
They expect a deodorant that not only keeps the dry all the time and is gentle on their skin but also something that will make them feel fresh and smelling clean for a longer time without fading off after a short time.
SWOT analysis
This SWOT analysis captures the strengths and weaknesses as well as the opportunities and threats facing masque.
Strengths:
- Aside from the fact that Arimount is a well-known name in the beauty and grooming business, it has a 20-year experience in the market.
- Arimount prides itself in producing products that not only appeal to its consumers but also has the long-lasting effect that enables our consumers get value for their money.
- Masque aims at satisfying our customers by ensuring that they enjoy its scent for a period of five days after application, even after taking a bath.
Weaknesses:
- The reception of other deodorant products from Arimount has not been as good as we expected
- Masques’ reception into the consumer market may not be as rapid as we expect.
Opportunities:
- More and more people are concerned about their grooming and therefore hygiene is a growing market both locally and internationally.
Threats
- The grooming market is already crowded with major companies dominating the market thus making it hard to penetrate this particular market.
- Quality production is necessary for one to penetrate the market because of the high standards set by other competitors
Competitors
Our main competitors in the market are Nivea, Dove and Rexona.
Nivea
Nivea is a global German based company brand that specializes in the production of product that deal with facial, body , all purpose, lip, deodorants, bath , sun and men’s care. It has currently been working on and produced a deodorant for women that leave no underarm stain on garments. This deodorant product alone cost Nivea a production cost of 2 million pounds and they expected to make a profit of 1.3 million pounds by the end of 2012.
Dove
Dove is a Unilever brand that expanded from consumption only in the U.S to being a global brand. It targets both male and female consumers. In 2012, it ranked the fourth most valuable care brand in the world with an estimated net value of $4.7 billion. Its availability in the market is customary being that it is obtainable in any retail store whether in a supermarket or a drugstore.
Rexona
Rexona is also a Unilever brand that specializes specifically in deodorant production. It spans over eighty markets with a target consumer of 12.6 billion worldwide and in fact owns a 14.5% share in the global deodorant market. They target both men and women between the ages of sixteen and forty. Rexonas’ net profit as of 2010 was $6.3 billion.
Financials
The financial section will offer Arimounts’ marketing expenditure concerning Masques’ marketing, advertisements, and sells.
Break Even Analysis
Break-even analysis indicates that $10,000 in monthly sales will be required to reach the break-even point.
|
Break even analysis: |
|
|
Monthly units break-even |
100 |
|
Monthly sales break-even |
$10,000 |
|
Assumptions: |
|
|
Average per unit revenue |
$30,000 |
|
Average per unit variable cost |
$30 |
|
Estimated monthly fixed cost |
$15 |
Sales Forecast
Given that ‘MASQUE’ is a new product been introduced into the market, Arimount feels that the sales forecast can only increase as the cost of advertisement will allow. For the purpose of sales forecast, Arimount will divide its target customers into two major groups: the male and the female consumers.
Sales Forecast
|
Sales |
2013 |
2014 |
2015 |
|
Female |
$200,000 |
$300,000 |
$400,000 |
|
Male |
$100,000 |
$150,000 |
$200,000 |
|
Total sales |
$300,000 |
$450,000 |
$600,000 |
|
Direct cost of sales |
2013 |
2014 |
2015 |
|
Female |
$40,000 |
$60,000 |
$80,000 |
|
Male |
$20,000 |
$30,000 |
$40,000 |
|
Subtotal cost of sales |
$60,000 |
$90,000 |
$120,000 |
Expense forecast
Controls
ASSIGNMENT II
Part A
Which types of marketing research will Arimount adopt?
Although there are, many types of marketing strategy available, Arimount will use both the qualitative and quantitative marketing research approach.
The quantitative type of research bases on attitudes, opinions, beliefs, and intentions of the consumer. Its aim is to understand why customers behave in a certain way or how they may respond to a new product. This research mostly collects from small groups of consumers and collective and one on one interview.
Given these opinions are often obtained from small numbers of people, the findings are not necessarily statistically valid but data helps to highlight potential issues which can be explored in quantitative research that will follow soon after its completion.
Arimount will achieve the qualitative research through in-depth interviews, focus groups, projective technique, and random probability sampling.
Given that qualitative type of research will not answer all questions required to support the market strategy, the company will also use the quantitative type of research to fill in the gaps left by the qualitative research method. This method involves large data collection, and usually involves the construction of questioners and scales which the respondents are have to complete as a survey. Quantitative research method seeks to answer questions such as how many, how often, who, when and where. The main aim of this approach is to define a problem; collect the data analyze it then report findings.
Some of the questions that Arimount will use include:
How old are you?
Are you a male or female?
Do you use any grooming product?
Do you use deodorants?
Why do you use it?
Which is your preferred deodorant brand?
What is the main quality you look for when selecting a deodorant brand?
How often do you use your deodorant in a day?
How long does your deodorant last before it wares off?
Have you ever seen a ‘Masque’ advertisement?
Would you feel like buying masque after seeing its advertisement?
What do you think about the price?
Have you spotted this product in any local retail store?
What do you think of the products name?
What do you think about its scent?
What do think about its ability to last for five days even after a shower?
How would you rate this particular product?
How often do you replace your deodorant?
How many times do you have to apple you deodorant?
Where have you seen a masque advertisement?
Who told you about this product?
Who do you know that uses this product?
Part B
How will Arimount ensure customer satisfaction?
Arimount will ensure that the consumer is always the first priority! Business exists because of the consumer, and they should be the primary focus of the companies operations. A bad product can be disastrous because most unhappy consumers never complain but they will not buy the product again and they will tell many others.
Ensuring that Arimount employees are well trained and competent for the job required, will guarantee that the final product is to the satisfaction of the consumer. By encouraging, empowering, and communicating with staff Arimount will foster the Use of creativity and experience of its staff. This in turn will make them more productive leaving the management with time to manage operations.
By increasing the knowledge level of its customers, arimount will ensure their customers know the full range of services provided in order to get sales in new areas. Communication with the customer regarding information affecting the purchase decision such as the timing, availability, and freight information of the product is also of paramount importance.
Since price, quality, and service are the three main areas of comparison when consumers are making a purchasing decision Arimount will ensure work completes in a timely and efficient manner by setting timelines and deadlines for production.
Arimount will Listen to requests, accept changes, and respond positively to uncertainty brought forth by customers. This is because Customers may require order changes affecting existing arrangements. How these requests get handled is important to the purchaser and their comfort level for making future orders.
Arimount will research if and how other companies are doing that is better than ours, with the ultimate goal of imitating or improving on their techniques. We will talk to suppliers and customers to collect general information on how our competitors operate and what they do differently.
We will ensure that we build customer service into every job, not just frontline sales, and marketing positions. Inventory control, delivery people, switchboard operators, repair and service staff, billing and accounts receivable employees are all important to us.
Encourage complaints. This is because unhappy customers usually do not complain, but most will never use your product again. Clients who express their dissatisfaction will do business with you again if their problem is resolved to their satisfaction, and they will relay their satisfaction to other people.
Arimount will ensure that it respond quickly and fairly to all complaints by providing customers with a simple procedure for registering a complaints; and keep clients informed regarding the resolution of a complaint. This allows us to deliver more than what our customer expects.
ASSIGNMENT III
What marketing segmentation will Arimount use?
Market segmentation mostly bases on five main variables namely: gender, age group, income, marital status, and occupation. Arimount will use only three of these bases to determine our market segment. These are gender, age group, and occupation.
Gender is very important in our decision because masque is a product for both male and female consumers. Thought the name is standard, different products will be in production for both our male and female customers. As far as age is concerned we seek to target both teenagers and grown ups. This is because more teenagers are now using deodorants in their daily grooming. Even thought Arimounts’ main target is all consumers we seek reach out to those who are mainly involved in occupations that require body activity such as sports or lifting activities.
Media segmentation
Arimount recognizes that different media reaches different people differently. Therefore, we will seek to employ all means of advertisement to reach our target consumers. This gains achievement through print media, by circulating word through newspapers, magazines, and pamphlets. Broadcasting the product in local media and billboards and by the involvement of social media for our younger potential consumer ensures that word on the product spreads.
Psychographic segmentation
Deodorant is not a necessity and may even to a certain extend be categorized as a luxury. That said arimount recognizes that while deodorant may appeal to some people, not all people can buy it. Deodorant buying is a matter of lifestyle.
Positive market segmentation
Even thought there is stiff completion in the deodorant market, Arimount may have some advantage because they have developed a product that has long lasting power unlike the rest. Our 20-year experience in the hygiene industry has also given us a boost of sorts in the market.
Behavioral segmentation
Arimount has been in the market for the past 20 years and the reception of our customers has been satisfactory. We will be relying on this response from our loyal customers to introduce masque into the consumer market.
Benefits
Masques’ creation is for the sole purpose of being able to last for five days on the body even after taking a bath. Arimount are relying on this element to attract potential customers.
Price segmentation
Most deodorant prices range from four dollars up to even ten dollars depending on the brand. Arimount seeks to provide a good and quality product for a cheaper and affordable price. This ensures that our customers do not have to overspend or dig deeper into their pockets to be able to afford our product.
Part B
How will the company address your customers’ buying decision process?
A customers buying decision process divides into five main categories: Problem/Need Recognition, Information Search, Evaluation of Alternatives, Purchase Decision, and Post-Purchase Behavior. Arimount will address every decision process individually.
Problem/Need Recognition
This is what leads to the buying of the product. Need is a very important catalyst when it comes to buying of a product. Arimount recognizes that the customer not only needs to be hygienic but also has to maintain that hygiene. By ensuring that Masque has a longer lasting staying power on the body even after a wash, we appeal to customers who really value the maintenance of their hygiene. Our product also caters for the people who may have problems concealing their natural body odor.
Information Search
The second stage is where the consumer searches for the relevant information about the either from other people, advertisement, retailers, dealers or by examining the product itself. Arimount will ensure that as much information circulates not only through vigorous advertisements and experimental sources but also by word of mouth.
Evaluation of Alternatives
Thought Arimount cannot stop a customer’s evaluation of alternatives we can ensure that our product ‘Masque’ has good first impression through attractive packaging, good quality, and a long lasting staying power. A products good quality always precedes it.
Purchase Decision
After evaluation, the customer will either purchase the product or post pone the purchase. Arimount will ensure that there are few postponements by ensuring that there is sufficient information on ‘Masque’ so that there are no second guesses during purchase.
Post-Purchase Behavior
After purchase, a customer is either satisfied with the purchase or not. Arimount will ensure that the quality produced is the highest and the very best. However, should the customer still not be satisfied with our quality then they will have a choice of voicing their opinion or stating their concern/grievance with us, which we will gladly address and get back to them. Arimount only seeks to please our customer.
ASSIGNMENT IV
Part A
Brand elements most useful for differentiating our company’s brand from competing brands
A products brand is very important if one hopes to achieve sales. Arimount recognizes these thus will rely on a number of brand elements to distinguish us from other competing deodorant brands.
Brand position
Arimount has been in the cleaning and cleaning industry for 20 years. With this experience, we are able to come up with a product that is best suited for the specific needs of our customers.
Brand promise
We at Arimount promise that our products not only meet the needs and expectations of our substantial customer base, but also come at affordable and pocket friendly prices.
Brand personality
‘Masque’ is a word that derived from the 16th and 17th century festival entertainments that mostly involved song, dance, and acting. Therefore, our product aims at leaving our customer feeling that they can to have a good time without worrying of compromised to their hygiene or grooming.
Brand story
Arimount feels that its twenty years in the cleaning and grooming business is a story that speaks for itself. Moreover, we boast of achieving average returns on our investments, which speaks volumes in these hard economic times.
Part B
Positioning for the company’s product
‘MASQUE’ is for any person who enjoys an active lifestyle and wants to remain feeling fresh and cleans through out.
Part C
Amount has identified three main factors that will identify our company’s strategic group concerning our new product. These three factors are the pricing policy, extend of product diversity, and extend of geographic coverage.
Pricing policy
The average price of deodorants in the U.S ranges from eight to ten dollars, depending on the brand purchased. Most popular brands such as Nivea sell their deodorants from eight dollars going up, depending on the type and size. Arimount seeks to put this into consideration by selling our product at more affordable pricing thereby ensuring that consumers get an option of quality products for more affordable prices.
Extend of product diversity
Most deodorant manufactures have come up with different types of deodorant that suit their diverse target consumers. Arimount will also incorporate these ideas by making sure that masque is available in different varieties for our male, female, and teen consumers as well as different scents for the diverse number of target consumers of this product.
Extend of geographical coverage
Most of our competitors are global brands; therefore, arimount will try to introduce our products in markets outside America and watch the reaction of these markets.
ASSIGNMENT V
Part A.
Core benefit
Arimount understands the need of individuals to maintain a clean and healthy hygiene while pursuing their normal lifestyle.
Basic product
Masque is a deodorant that functions like any other deodorant in the market. Its main function is to keep the underarm fresh, clean and dry for the longest period it can.
Expected product
Masque, like other deodorants minimize the underarms sweating capacity by keeping it dry as well as providing a clean scent that leaves the underarm smelling fresh and clean.
Augmented product
Unlike other deodorants masque has the staying power. This means that not only will it keep the user fresh and dry for the whole day but will keep on working for five days even after taking a bath. This ensures continuous protection
Potential product
Masque is a deodorant that differentiates from other deodorants for its longer lasting feeling with the user. This means that the customer saves not only on the expenditure but also on the use since it does not need continuous application like other deodorants.
Part B
Primary pricing objective of Arimount
Market penetration objective
Arimount understands that even though it has been in the grooming industry for long, Masque is its first deodorant product. For a proper introduction into the market, the produce price has to be low. This is mainly will be to secure a large share of the market so that in case of a highly price sensitive market, that way, we may continue to sell our products even without profit.
Arimount is interested in growth rather than in making a profit. In these objective, the unit cost of production and distribution will decrease when the volume of sales achieve a particular target.
Part C
Packaging and labeling
Masques’ packaging will be in three different containers for the purpose of our consumers. These will be in liquid and solid form in plastic and glass bottle respectively and in compressed air form in aerosol cans.
The labeling will be on paper glued to the container. This label will include information such as the contents of the product, the address of the manufacture, quality of the contents, cosmetic warning statement, quantity statement, and warnings where applicable. The language on the label will be English and other foreign languages.
The transportation package will be plastic paper and carton box.
ASSIGNMENT VI
Part A
Channel levels appropriate for your company’s’ targeted business segment
Arimount will use the four-stage distribution channel. This means that we will distribute from the manufacture, which is us, to the wholesaler who buys the product in bulk, the wholesaler will then sell it to the retailer who sales it in small quantities to the customers. With the growth of online consumption, Arimount will also sell our product online in sites such as e-bay.
Based on this distribution strategy, Arimount has chosen to use intensive product distribution. This will enable us to place our product is readily available and in as many markets as possible. This will heighten our sales generation. It will also ensure that our customers are able to access our product from any number of different outlets ranging from the biggest supermarket to the smallest drug store. By doing this, Arimount will not only target our customers but also other consumers who frequent these outlets.
Successful intensive distribution will not only enhance the sales of our product but will also, as part of the process, build recognition of our brand by customers. This will in turn increase the chances that the consumer will reach for our brand over other similar brands.
Part B
Retailers the company use for distributing product
Department stores
By selling masque in department store, we ensure that our product is placed with other brands so that the consumer can make a comparison, and go for what we offer. We are relying on the fact that our product is of good quality for a cheaper price. The main disadvantage of this decision is that our competitors already have strong, recognized brand names such as Nivea.
Discount stores
Discount stores are more popular with the consumer than the manufacture. This is because they offer cheaper prices for products. Arimount therefore seeks to use discount stores to introduce consumers to our product. The only disadvantage is that the sales will have to go down for the products in this particular retail. However, it will increase our market for Masque.
Drug stores
Drug stores mainly concentrate on health and personal grooming merchandise. By using drug store, Arimount seeks to ensure that our customers are able to access our product. The main problem is that customers who prefer to buy their grooming products from discount store and supermarkets are not frequenting drugstores.
E- Retailers
Each day more and more people prefer to order their merchandise online. This is because the world is now relying more on the internet and E- services. Our customers can order our product through an online retainer who will handle the sale while we deliver the product to them straight on their doorstep. This is good because we get to deal straight with our customers. However, this form of retail may be potentially bad if the customers change their minds and return the product or refuse it.
ASSIGNMENT VII
Part B
Communication objectives and channels of the company
Arimount seeks to achieve three main objectives through our marketing communication to our target audience.
We seek to inform our target audience that we have a new product in the market. This objective is intended to create and stimulate the interest and awareness by making our target consumers know our product and where they can find it. This will be achieved by running advertisements that will aim to draw their interests. Given that a bid percentage our main target group are teens and young adults, we aim to engage them through social media. This is because many of them spend a lot of their time online. Along with social media, we aim to incorporate email marketing and banner advertising for those that spend a lot of their time online. For the other percentage of our target, consumers who do not spend time on the internet but would rather read or watch television; we will come up with television advertisements, newspaper advertisements, pamphlets, and billboards.
Our second objective is to persuade our target. This goal aims to convince our customers that our product will provide the best value to your customers, compared to our competition. This will be done by giving competitive pricing, money-back guarantees, and flexible return policies. We will also create urgency by giving limited time offers and time specific free shipping discounts.
Lastly, we aim to remind our target consumers to purchase our product. It is important to stay visible to our customers. This is because the more they are reminded of our existence, the higher the chance of them buying from us the next time they need something that we offer.
Part B
Event sponsorship
Arimount seeks to sponsor a music concert. This will mostly target our teen and young adults target consumers. This is in spirit with our brand name MASQUE that emphasizes on the need to have fun while staying fresh the whole time. We will also sponsor charity walks that will specially target our older target audience. Our target is that by the end of our separate event sponsorship programs, the brand name MASQUE will have reached many target consumers.
Part C
New product ideas
Based on the analysis made by our team with the help of our target consumers, Arimount has come up with two product ideas that may help further develop our product. We took samples of masque to our consumers and asked them questions like what they did not see in the product that they would have liked to see. We were able to get positive feedback and based on the feedback we have come up with two new product ideas.
Silky Masque
This idea is because of many of our target consumers’ complaints that most deodorants start melting a few hours upon application due to the temperature under the armpit. This melting in turn leaves a very wet and uncomfortable underarm, which is not easily rectifiable, especially if the individual is on the move. This new product idea will ensure that our product keeps the wearer dry all the time as well as leaving them with a silky feeling in their underarm. This will also address the sweat issue, which most often leans to cloth staining. A wet underarm often causes sweating; therefore, this new product will ensure that the underarm remains dry and sweat free the whole day.
Natures Masque
There is an alarming growing need to go green globally. Each day more industries have to come up with products that encourage the conservation of the earth. Each day more and more target consumers are going for products that have natural ingredients incorporated in them. Arimount has considered the needs of this particular target group and has come with a product of our new brand that replaces most chemicals such as aluminum, parabens, and toluene with more natural ingredients such as essential oils, baking soda, and vinegar. This targets our potential consumers who feel that deodorants have too many artificial ingredients and therefore feel comfortable with natural ingredients.
ASSIGNMENT VIII
THE EXECUTIVE SUMMERY OF MASQUE
Arimount is a well-known beauty and grooming company that has been in the hygiene market for 20 years with an average return on investments. In addition to our beauty and grooming products such as soaps, shower gels and shampoos, Arimount seeks to introduce ‘MASQUE’, a deodorant that can last up to five days- even after a shower, into the market. Arimount believes that its 20 years experience in the hygiene market offers an added advantage as far as consumer information is concerned because pleasing the customer always comes first.
The deodorant market is a large one and has major players such Nivea and Rexona targeting all kinds of consumers. No steady statistics that show the exact number, but it is believed that at least 10% of the worlds population uses deodorants. Arimount seeks to venture into this market bearing our surprise element, which is the fact that our product can last for five days after application and can even withstand a wash giving it a longer lasting effect. Arimount is also currently working on other product ideas of Masque such as ‘Silky Masque’ and ‘Natures Masque’ that target at catering for specific requirements of our target consumers. This is because of the marketing research carried out by our marketing experts. Our main target consumers are anybody over the age of thirteen who enjoys life and value their hygiene therefore, want to feel clean and fresh the whole day.
Arimount seeks to penetrate this market through rigorous and expansive advertising that includes television, internet, and print advertisements, billboards as well as making sure that our products are available in as many retail stores as possible. Through our interactions with our target audience, Arimount has established that most quality deodorant retail at a very high price. It has therefore seen the need to provide our quality deodorant product for a cheaper, more affordable price. Our product will achieve a fast and significant market penetration through our solid business, long-range planning, and our strong management team that is able to execute this stimulating chance. Having worked for twenty years with our team in producing other Arimount products that have been a success so far, we are confident that our new product will surpass even our own expectations. We also aim to go global by slowly introducing Masque into other global markets other than the American market such as Asia and Africa.
Other than making our product available in as many retail stores as possible including department, discount, and drug stores, Arimount seeks to sell our product on-line. This direct to the customer approach will allow arimount to achieve higher sales margins but also to maintain a close relationship with our customers. This is ensures the production of products that have a true market demand.
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