Mon
Cherie Handmade Marketing Plan
Market planning is a complex process, but it is an
organized way to evaluate the different variables pertaining to the current
market, the company’s position in that market, and the external and internal
factors that may affect the company. A market plan addresses issues and
obstacles more proactively and less reactively. Market planning aligns
stakeholders and employees to a company’s vision and provides a map to the
direction and goals of a company. Market planning will help Mon Cherie Handmade effectively create
a brand identity, market to the right potential consumers, and gain a portion
of a competitive market share.
About Mon Cherie Handmade
Mon Cherie Handmade is a small
company located and operated in Nashville, Tennessee in the soap, bath, and
shower products industry. Unable to find high-quality, organic, natural,
affordable bath products; the owner began crafting her own products as a hobby
in 2017. Currently, Mon Cherie wants to increase sales to other states by
opening an online store and supplying a few popular items at first to maintain
operations and supply and demand. Mon Cherie’s charcoal soap product is popular
among current consumers and offers a unique value proposition than other items.
Mon Cherie’s charcoal soap is made with an olive-oil base and is available in
four scents: lavender lemongrass, citrus mint, lime patchouli, and unscented. At
the present time, the owner is responsible for implementing the following
marketing plan.
Phase One: Goal
Setting
Phase one of a marketing plan
contains the company mission statement and corporate objectives. Mon Cherie’s
mission is to create high-quality products by using natural, organic, and
cruelty-free ingredients with minimal impact on the environment. Mon Cherie
wants to provide consumers with an enjoyable, relaxed experience from purchase
to use and build a relationship with consumers by truly understanding their
needs. Mon Cherie wants to deliver artisanal, natural products to consumers
with a focus on consumer and environmental health.
To
reach consumers, Mon Cherie Handmade will close its current online shop and
open an Amazon e-tail store. Due to economic reform and population growth in
expanding countries, emerging markets will out gross existing ones by 2035
(Sheth, 2011). An Amazon store will make it easier for Mon Cherie to sell to
consumers in these emerging markets with tools such as tax and shipping
calculators, language translation, and product listing in those foreign markets
(Amazon, 2020). The most effective global companies succeed in quality, product
consistency, and reliability (Levitt, 2006). Mon Cherie wants to strengthen
these qualities before expanding internationally, but the new Amazon store will
to increase brand awareness, visibility, and reach more consumers within the
United States than through the company’s previous efforts.
Mon
Cherie’s primary objective is to secure 1000 followers in twelve months on
Facebook and Instagram by increasing the social media advertising budget,
increasing 500 followers each quarter thereafter. The second corporate
objective is to conduct consumer product research and launch a product
extension of three additional scents or products after twelve months. The
company intends to offer an online soap “creation station” within five years,
which will allow consumers to create and personalize their own soaps. According
to Expert Market Research (2020), the bath soap industry is a 20 billion dollar
global industry with an expected growth of 27 billion dollars by 2025. Mon
Cherie’s third objective is to reach 0.0002 percent of the soap market within
two years, which is 40,000 to 54,000 USD with a goal to reach 0.0005 percent of
the market share in five years.
Phase Two:
Situation Review
SWOT
Analysis
The
SWOTT is an effective tool that helps businesses plan, design, and make
decisions by analyzing the strengths, weaknesses, opportunities, & threats (Pochobradska,
2019). Mon Cherie can use the SWOT analysis and current market trends to
understand the target market and define potential consumer segments.
Table 1:
Strengths, Weaknesses, Opportunities, and Threats
|
Strengths |
Weaknesses |
|
• Natural, organic
products |
• Lack of brand
recognition |
|
• Vegan and
environmentally-conscious |
• Entry into a
competitive market |
|
• Artisanal appeal |
• Low social media
following |
|
• Competitive pricing |
• Limited
manufacturing capabilities |
|
• Low cost of
operations |
• Limited product
selection |
|
• Consistent strength
of the soap market |
• Product life cycle
in growth stage |
|
• Lack of capital |
|
|
Opportunities |
Threats |
|
• Project growth of
industry to 27B by 2025 |
• Strong market
competition |
|
(Expert Market Research, 2020) |
• COVID pandemic
economic effects |
|
• Large market
potential |
• Similar products on
the market |
|
• Increase social
media followers |
• Consumer loyalty to
older brands |
|
• Growth potential
with expansion into e-tail |
• Industry
consolidation |
|
• Create unique value
proposition |
• Consumer awareness |
Mon
Cherie’s strengths will enable the company to grow in the soap industry. The
product provides a unique value proposition for several consumer segments. The
cost of operations is low, so there is no need for capital to begin, however,
this is also a weakness because expansion will be slower. The fact that the
product is handmade also slows and limits the production. The opportunities
section provides a hopeful glimpse of the direction of the company and the
potential for growth. The threats are similar to that of any small business
venture entering a large market with many competitors.
Current Market Trends
The soap industry is a competitive market with a variety
of well-established products and companies, however, many consumers within this
market are not brand loyalists. While the purchase of Mon Cherie’s soaps
involve a certain degree of involvement for consumers, the soap industry has a
high rate of consumer disloyalty, as 46 percent of soap consumers are apt to
brand-switching and trying new products (Nielsen Company, 2019). One way a company can obtain market
share is to evaluate current trends and meet those consumer needs. Some current
niche market trends are a preference of handmade goods, green products, and
unisex items. Despite technological and manufacturing
advancements, some consumers maintain a preference and attraction to artisanal
products. One study found a positive correlation between the association of
handmade goods and consumer attraction which researchers termed “the handmade
effect.” Gift-givers who want to demonstrate love for the recipient prefer
gifting handmade products. Researchers also found that consumers have a
willingness to pay up to 17 percent more for handmade products (Fuchs et al.,
2015).
Another trend is that consumers are more aware of the
impact their consumption behaviors impact the environment. With this knowledge
comes the belief that consumers and businesses have a responsibility to
preserve and conserve the earth’s resources. This social attitude creates a
drive for environmentally safe products and companies who focus on
sustainability. One study found that environmentally-conscious projects
positively influence purchasing decisions. If a consumer purchases one
environmentally – friendly product, it is probable that he will purchase
similarly green branded products (Arli et al., 2018).
The
COVID-19 pandemic is an external circumstance that has changed society. As a
result businesses have shifted their marketing strategies to accommodate for
these changes. Regardless of socioeconomic or demographics, all consumers have
an increased need for cleanliness and focus on hygiene as the CDC advises that
washing one’s hands for at least 20 seconds with soap and water may prevent the
spread of the virus (2020). One
research survey found that brands that are gender-balanced have a 20 percent
higher brand value than products that are geared to only one gender (Kantar,
2019).
The
Target Market
and Customer Segments
The three stages of customer segmentation are to select a geographic
location, market-mapping, understand the market’s operations, and make
decisions surrounding the market competition (McDonald & Wilson. 2011).
With an online store, Mon Cherie will distribute products to the entire United
States. Mon Cherie’s will target niche segments of consumers who value handmade,
environmentally-friendly, organic, natural, and unscented products.
The
targeted age range is Gen Xer’s, Millennials, and Zenials primarily.
Millennials associate self-identify with luxury products and gravitate towards
new products that have sensory appeal, evoke feelings, and positively changes
the way others perceive the consumer (Kerviler & Rodriguez, 2019). The
general population has an increased need for soap and cleaning products due to
the COVID-19 virus. Many companies and organizations have used social marketing
that is consistent to promote behavior that reduces the spread of the virus
(Lee, 2020). Overall, consumers within the soap market will respond favorably
to positive messages promoting cleanliness, community, and social distancing
such as “Stay home. Stay Healthy. Stay Safe” and handwashing tutorials.
Phase
Three: Strategy Formulation
Marketing
objectives pertain to products and markets, while the strategies are the tools
and resources that marketers use to reach these objectives. Market strategies
generally consider the company, customers, products, and competitions (McDonald
& Wilson, 2011). As a new company entering the market, Mon Cherie
Handmade’s company objectives are to improve the company’s market position and
sales by growing its social media following and secure 0.0005 percent of the
soap market in five years. Mon Cherie will introduce new products to the
current market and new markets through a new online retail store at Amazon. The
company plans stock the product locally in a few small joint ventures around
Nashville.
The Marketing Mix
Product
There
are a few product differentiations Mon Cherie can highlight. For one, people
who cannot tolerate products with synthetic scents will appreciate the
unscented version. The products are not exclusive to any gender or skin type
because the fragranced soaps are neutral and the ingredients are nourishing. Mon
Cherie’s soap products contain natural, organic ingredients and are wrapped in
recycled and recyclable packaging as green value positively impacts consumers’
attitudes and purchase decisions (Yu & lee, 2019). The company values
homemade, artisanal quality of its products, so another target segment is
consumers with an affinity for homemade products. One way to reach this segment
is to advertise to Facebook groups of crafters. This requires additional
research, but the idea is that those who make things by hand, likely share an
enjoyment of handmade goods. A possible line extension is for the company to
offer classes on soap-making and other products under the Mon Cherie Handmade
brand.
Pricing
Various
internal and external factors influence pricing decisions. Brand switching,
according to a survey of retailers, is common consumer purchasing behavior for
low - involvement products. Additionally, over one-third of those retailers
surveyed agree that pricing impacts sales positively (Patra & Dash, 2016). Some
internal considerations are cost and marketing objectives. External factors are
the nature of the market, the economy, demand, product market life cycle, and
competition (Ramachandra, 2009). The soap industry is a monopolistic
competition meaning that there are numerous buyers and sellers and the product
is differentiated (Ramachandra, 2009). In a monopolistic competition prices can
vary according to a product’s benefits and perceived value, therefore,
companies have more choice in product pricing than in other markets.
Mon Cherie’s product
ingredient costs are relatively low at $0.63 per bar, however, the distribution
method and shipping can greatly influence the pricing. To sell through Amazon,
a retailer has a choice of monthly or per-sale pricing. Amazon charges either
is 99 cents per sale or $39.99 per month. Domestic shipping charges through
Amazon range from $3.99 for small packages to $14.95 for large orders. Amazon
also charges various referral fees for different products. The Amazon site has
a profit margin tool, which shows after costs, fees and shipping the profit
margin on a four - pack of soap at $15.95 is $6.43. A market comparison
reflects that the current market pricing for charcoal soap range from Irish
Spring’s Fresh Charcoal Bar Soap at 50 cents per bar (or eight-pack for $3.97)
to Origins Clear Improvement Purifying Charcoal Body Soap at $20.00 per bar. After
factoring in labor costs, time & other resource, the actual total
break-even price per bar is $2.50. Since Mon Cherie’s soaps fall in between the
low-cost and luxury products already on the market, $3.50 to $4.50 is the
acceptable product price range as this is competitive with other mid-range
sellers.
Place
Larger
companies have more options for distribution, whereas smaller companies may
have limited opportunities and may have to use direct channels initially
(Ruskin-Brown, 2006). Mon Cherie Handmade will use Amazon as its e-tail store
platform, and Amazon does offer distribution and warehouse services to
companies, however, Mon Cherie will need to manufacture more product for the
costs of that distribution channel is practical. In the early growth stages Mon
Cherie will use Amazon as the selling platform, and send the product directly
to consumers through UPS. After a year, the company will re-evaluate the
resources needed and growth and decide if the Amazon platform and costs are
reasonable enough to use. Of course, if the company is able to supply its
products to a local store in the near future, this physical location will be an
additional distribution channel.
Promotion
One way for a company to increase consumer
engagement and product awareness is through promotional efforts. The first promotional objective
is to increase social media followers to 1000 within the first year. Another
promotional objective is to increase traffic to Facebook, the Amazon shop, and
other popular social media platforms such as Twitter and Instagram, to 100
website clicks per day. Lastly, Mon Cherie will conduct product research on
social media and collect feedback from 1000 consumers within three months to
begin the development of a new product extension or line. Mon Cherie will use
Facebook Advertising, social media influencers, and sales to accomplish these
promotional objectives.
On
Facebook, Mon Cherie will filter out and target consumers according to
associated interests such as recycling, green initiatives, the organization
Green Peace, and other environmentally – conscious buzz words. Locally, the
company plans to have involvement with Earth Day activities and tree-planting.
Creating samples of the products and distributing these to volunteers may
increase additional interest. The company values homemade, artisanal quality of
its products, so another target segment is consumers with an affinity for
homemade products. One way to reach this segment is to advertise to Facebook
groups of crafters. This requires additional research, but the idea is that
those who make things by hand, likely share an enjoyment of handmade goods. A
possible line extension is for the company to offer classes on soap-making and
other products under the Mon Cherie Handmade brand.
Phase
Four: Resource Allocation and Monitoring
Implementation
Mon Cherie’s
communication objectives entail building a brand identity and informing
consumers about the company’s values and products. Consumers derive tangible
benefits from these communications such as the product’s features and also
intangible beliefs like self-esteem and purpose (Mann & Ghuman, 2014). Every communication purposefully or
unintentionally attributes to that image, so it is crucial that a company align
communications to present the desired image. Once a company decides on a
consistent message, the next step is to deliver that message through the
appropriate channels that will reach the target segments. Mon Cherie will reach
consumers through targeted Facebook Advertising, YouTube search engine
optimization, Twitter, and Instagram. Consumers who sign up or make a purchase
will receive a monthly email newsletter from the company notifying the reader
of upcoming promotions and products.
Before the launch of the Amazon
retail store Mon Cherie will offer free samples of the product to loyal
consumers in exchange for reviews on the Facebook page. The consumers will be
encouraged to post images of the soap on any media platform with the hashtag
#SoapHappy. This promotion serves several purposes: 1.The free samples are a
token of appreciation for the loyal consumers who have supported the company
thus far. 2. It will help generate a social media buzz and collect more
Facebook reviews. 3. It will potentially generate return orders from loyal
customers. Mon Cherie will also distribute free samples to compatible social
media influencers for recognition. The company will supply products to a few
real-life influencers who are making a difference in the community such as
members of local volunteer organizations that share similar values of health
and environmental safety as the company.
In
one study, over one-third of retailers surveyed agreed that pricing impacts
sales positively (Patra & Dash, 2016). At the time of the Amazon online
store launch, the company will celebrate the event with a buy one, get one free
deal for new customers who sign up for the Mon Cherie Handmade email
newsletters. This sales promotion will last for two weeks while the company
uses Facebook for Business “Reach and Frequency” advertising to target to the
target audiences. The aggressive ad campaign will promote the sale, the
product, and the company through fifteen-second commercials that inform
consumers with visuals. The company will release the same promotional videos to
YouTube and to social media for public sharing.
Before
the launch of February 15th, the company will release polls, videos, &
informational product posts on Facebook and other social media accounts. Weeks
before the launch, any influencers of positive reviews will be highlighted or
shared on the Mon Cherie Handmade social media pages. A week before the launch, the company will
create excitement with some give-a-ways and count down posts. The day of the
launch and the following two weeks, Facebook for Businesses ads will run daily
and the first email will go out to subscribers after the two weeks the company
will send an introductory email thanking the subscribers for signing up or
purchasing the products and explaining who the company is and its values. Mon
Cherie wants these emails to focus more on information rather than aggressively
emailing to secure a sale.
Figure 1.
Sample of the social
media marketing schedule pre-launch.
Monthly Budget
The
sales promotion function on Facebook for Businesses allows companies to set a
maximum budget and choose a specific market with a selection demographics, interests
and other consumer qualities, but it is difficult to estimate an exact cost
through the Facebook site. However,
WebFx, a competing social media advertiser, averages the Facebook costs at 97
cents per click and $7.19 per 1000 impressions (n.d.). Mon Cherie has budgeted
eleven dollars per day for this campaign. After two weeks, the company will
decide whether the campaign is effective, alter the Facebook advertising
budget, or decide to cancel. The company will use Hootsuite to manage its
entire social media campaign. Hootsuite is an online service that allows
companies to manage all the social media, respond to messages and comments,
post across accounts, and track campaign analytics from one platform
(Hootsuite, n.d). The price of this basic service is $29 per month. The total
monthly advertising budget for the launch is $184.
Contingency Plan
Mon
Cherie will continually monitor the social media engagements, reach, sales, and
communications for effectiveness. If one platform or mode of advertising does
not improve consumer reach, then Mon Cherie will analyze the campaign analytics
on Hootsuite and Facebook Ads, and adjust spending and change segments. The
company will promote heavily- discounted sales as a final effort to increase
sales.
Figure 2.
Effectiveness measures and
contingency plan
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