Executive Summary
RASEOK Cosmetics is a new company in America and will venture into the supply of skin care products and sports apparels. The purpose of the above marketing plan is to justify how RASEOK Company will implement the set plan to realize the shareholder goals more effectively. The future of the company is instilled in the company vision to make people enjoy life due to the affordable skin solution offered by the business. One of the strategies used by the company is adequate satisfaction of consumers as a tactic of winning customer loyalty. The company intends to facilitate its operations using funds from owners’ equity and short-term loans and operation that will be supported by profit generated from running the business. Moreover, to ensure that the business meets its set goals, it is worth noting that monitoring and evaluation will help the business managers in the identification of faulty activities and take necessary action.
The company is built on the notion that satisfied consumers establish lasting relation with the business, an aspect that gives the company a competitive advantage in the market. The company intends to finance its operations from owners’ equity and fund obtained from short-term loans for the start of the business. Moreover, to ensure that the business meets its set goals, it is worth noting that monitoring and evaluation will help the business managers in identification of faulty activities and take correction action.
Introduction
With the current state of globalization, the business setting is faced with a lot of competition as different companies are expanding their business to international scales to exploit markets outside their native countries. For effective business performance, it is, therefore, important to appreciate that development of a marketing plan is important as it is used as an ideal tool to guide the business administrators in achieving their set objectives (McMahon, 2012). An effective marketing plan gives the users direction on how to achieve the set goals as it maps the various aims and objectives under study. The above marketing plan for RESEOK Company will be used by the firm to venture into the new market so as to adequately exploit the current opportunities as far as sale of cosmetic products is concerned. The study will start with a situation analysis of the regional market indicating the prevailing market conditions and prospects of the business.
Vision
Our vision is to help people enjoy life and/or to offer an affordable solution to skin care in such a way that bring a long lasting business relationship.
Mission Statement
Situation Analysis
In efficient management of organizations, it is worth appreciating that situational analysis plays a significant role. The concept helps in the strategic analysis which entails collection and analysis of relevant information on a company environment and recent trends (Washburn et al., 2015). Besides, the idea helps indicate the organizational competence in the implementation of the business as well as available resources to use. Every company has the internal and external environment which should be adequately analyzed to determine the possible threats and opportunities which need to be exploited. The above business plan is developed with a conscious of the 3C's which include an understanding of the company, consumers, and competitors situation in the market (Nguyen, 2015).
The Company
RASEOK Cosmetic is an African corporation in North America formed by three Nigerian Entrepreneurs; Rasheed, Seun and Okoye. The company derives its brand identity from the founders’ names and it is entirely owned by the three initiators (Rasheed, Seun and Okoye). The board will consist of seven members who include; Mr. Rasheed, MrSeun and MrOkoye, Mrs Rasheed and three other investors. Together, Mr. and Mrs. Rasheed have 25years’ worth of combined experience in the retail industry. Both of them have held senior management positions with major companies in this area.
Products
RASEOK Cosmetics will in particular deal with two product lines, which include skin care and fitness apparel. However, the products are further differentiated to offer users with a wide variety to choose from based on their needs. The company intends to use an effective pricing strategy which represents the real quality of the products, hence attracting competent individuals will impact well to the business. RASEOK is advantaged to occupy potential marketing position due to its unique product combination and quality of the provided merchandise (Luther, 2011). Moreover, the company intends to exploit the market opportunity presented by lack of fitness apparels and accessories that meet the description of the ladies, a feature that will offer it a significant benefit in the market (Kuen-Hung et al., 2013).
The Market
The main goal of the company is to reach as many consumers as possible, and this includes expanding the trade to international scale, hence contributing to more opportunities for the business. Bronza et al., 2014).
The Customer
Because RASEOK is a combined retail (direct to end user) and wholesale (to the end user through a retailer) strategy our target customer are broken into two distinct groups, the end user and the retailers. Our targeted end users are between the ages of 24 and 60. There are a number of new demand trends that have impacted the market and created greater opportunities (Mintz & Currim, 2013). And we are working round the clock to ensure that our product travel wide and far countries as we utilizes the available resources to meet our demand markets
SWOT Analysis
Strength
The company is advantaged due to a number of strengths, which include, quality products, adequate manpower, efficient products supply chain, vertical presence in brick and mortar, catalogue and e-commerce.
Weakness
Some of the weaknesses that will be experienced in the first few years of operation include lack of adequate funds to facilitate the business and inefficient technology.
Opportunity
The business is privileged to produce at a low cost compared to competitors and has an effective marketing strategy, which is an opportunity to the company.
Threats
Some of the threats that are likely to affect the business is the existence of many competitors in the industry and due to inflation, and also the people are likely to reduce their spending.
Main Competitors Analysis
The company is not without competitors, and some of the major rivals in the industry include the following;
Kiehl’s – this is a rival company in the business and was established in 1851 hence it is well recognized in the market due to its strong presence (Kim, 2012). The company is situated in the U.S and has operated for generations hence have a strong influence in the market, an aspect that gives the business a competitive advantage.
Aveda – it was established in 1978 and is renowned for quality hair-care products and other established products for salons. The company operates on international scale due to its strong brand image and the fact that the business premises are strategically located.
Clinique – it is a rival company in the business and was established in 1968 and is renowned in the market for skin care and makeup merchandise with an efficient supply chain system in the market (Plunkett, 2015).
Essential elements – the firm was started in 1995 and is renowned for the production of natural body crèmes and lotion from natural materials with efficient distribution channels.
Target Market Segment Strategy
Because RASEOK is a combined retail (direct to end user) and wholesale (to the end user through a reseller) strategy our target customer must be broken into two distinct groups, the end user and the reseller. Moreover, our targeted end user lies between the ages of 24 and 65. They are urban professionals with at least some college. This consumer has an active lifestyle. They are concerned about social and environmental issues.
Positioning Strategy
Our positioning strategy will depend on the following characteristic
Product positioning - characteristics or customer benefit as a position strategy and
RASEOK will achieve this by basically focusing upon the characteristics of our products or consumer benefits and also market fit and differentiation
Brand position strategy -This we achieve by our unique packaging and display tactics
Competitive positioning strategy will be established by offering what our competitors will not be able to offer in order to gain a competitive advantage over them.
Competitive pricing strategy - we are going to apply some reasonable or premium pricing methodology to keep the larger market share continuously.
Marketing Mix Actions
Pricing Strategy
Our pricing strategy at retail will be to create a price-to-benefits ratio that positions RASEOK as a superior value. At wholesale we will price our products to provide the retailer with a 50% maintained margin and offer a product exchange program for current accounts. Our wholesale prices will be derived after the appropriate retail is determined to ensure that the shelf price represents a value to the consumer and the retailer has a 50% margin (Yu-Jia, 2012).
Promotion Strategy
Our promotional strategy will cover a broad range of programs.
Pricing -We will have price discount , warranty, quantity discount and clearance sales
Consumer Mailers - We will have a monthly mailer for RASEOK customers. It will be designed to educate the consumer about the benefits of a particular product or ingredient. The mailer will be redeemable for a sample of the product.
Seminars - Our point of sale system will track consumer sales and usage by customer. We will invite our best customers to quarterly seminars on skin care and wellness to further grow the trust and the relationship marketing.
Public Relations - We will contract a top public relations firm to develop and execute a gorilla campaign. The objective will be to secure product placement in key publications and endorsements by opinion leaders.
Place
Our Customers will have diverse means to transact or make purchases which can be achieved over the internet web, retail shops, dealers, and our mortar and bricks building.
Product
This is a very important aspect of our marketing mix. And we would do the following to modify our product to meet customer taste .Change the quantity, shape, design, color, quality, packaging, label and durability of our diverse merchandise.
Strategy and Implementation
Value Proposition
RASEOK is committed to giving its consumers quality skin and body care products for the users to experience maximum protection of their skin. Moreover, the formulation of the company’s products comes from high-quality natural cream development and retail at affordable prices.
Competitive edge
The company’s competitive advantage lies in the effective formulation and distribution channel which is well organized for the supply of the company products to the end users. Besides, the company has an ideal positioning in the market to exploit the current opportunities in the market which can be exploited through the development of effective marketing programs and promotions (Clay & Clay, 2013).
Marketing strategy
RASEOK considers using an efficient advertisement programs which will be simple indicating the unique features of the company products and their orientation towards meeting the consumer needs. This includes a description of who are involved in the distribution of the company products, where they are available, time, why consumers should consider using the products and how they will be sold. The agenda of the advertisement plan will be to persuade people to use the organizational products over the products from competitors in the market.
The sole advantage of the advertisement program is to enlighten consumers on the benefits of using RASEOK products, in particular through personal selling strategy. The advertisement program will start on a small scale but will eventually expand to cover wider target market, and this will involve both customer visits and calling to win their loyalty (Constantinides, 2006). The business is guided by the perception that word of mouth has a significant contribution to the business growth as satisfied customers can steer many people to consider using our products.
Sales strategy
Some of the key techniques employed by the business in the selling of the organizational products include engaging in telephone sales and person-to-person sales among others. The selling programs will be carried out in three main phases with the first one being accommodation of the existing uses by efficiently supplying them with their respective demands. In the second phase will be accomplished after the expansion of the business facilities and will involve the development of new products, the establishment of the new target market. The agenda will be achieved by hiring a competent sales person through the effective definition of the target market. In the third phase, RASEOK Company will be forced to hire more sales personals who will introduce other sales programs such as the implementation of e-business through the online store.
Sales Forecast
The business intends to use retail, wholesalers and web selling which are expected to grow progressively through the five year period from 2016 through to 2020. Each year will be offered growth target based on some factors as will be outlined shortly. The business will grow with time as the company expands its facilities to cater for more market needs and with more demand level from consumers. The target population for the business products’ involves people who are frequent users of the internet hence will be an added advantage to the business whatsoever (Learning, 2013).
Some of the factors that assure of potential future growth of the business are that the organization intends to expand its facilities each year. Moreover, the company will further launch new products on a regular basis o as to effectively meet the consumer needs more effectively. The advertising program of the company will include both media and person to person, a feature that will enhance product awareness in the market.
Sales Forecast
Financial Plan
The above business will be financed by the owners and funding obtained from the short-term loans with an objective of maximizing returns while minimizing costs. The first year of the business will experience a lot of challenges due to lack of adequate finances but in the second and subsequent years, it will experience more profits due to the expansion programs. The business intends to expand its profitability rate by at least 15% each year due to efficient operations as an approach to minimize costs.
BUDGET
Pro Forma Profit and Loss
Risks
There are very many risks that pertain the business and one of the strategies that are used to counter such aspects include the development of a strong base of retailers and distributors. Moreover, the marketing team should be keen to monitor consumer behavior while trying to meet the needs of a small niche in the best way possible (Nagy, 2014). These among others are the sure ways through RESEOK will overcome the various economic challenges while at the same time overcoming bankruptcy.
Monitoring and Evaluation
Monitoring and evaluation, in this case, should be a continuous process in evaluating the successful implementation of the project to assess the success of the business in the market. Effective monitoring has varied benefits which include knowing whether the implemented scheme has realized its set objectives. Moreover, it helps the marketers to understand the various sections that require being improved based on the performance. The sole purpose of the monitoring and evaluation program is to assist enhance on future activities of the business.
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