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STUDENT MARKETING PLAN FOR “O’Natural Hair Care”028575O’NATURAL HAIR CARE00O’NATURAL HAIR CAREA Marketing Plan Presented by: Vanessa BroughtonTable of ContentsPage1.Background12.Strategic Focus and Plan1Mission Statement1Goals1Competitive Advantage23.Situation Analysis2SWOT Analysis2Competitor Analysis3Company Analysis3Customer Analysis4Customer Analysis44.Market-Product Focus4Marketing and Product Objectives4Market-Product Grid5Target Markets6Points of Difference6Positioning65.Marketing Program7Product Strategy7Price Strategy7Promotion Strategy8Place Strategy86.Financial Projections9Break-even Analysis97.Organization98.Implementation Plan99.Evaluation and Control10Possible Deviations10Possible Solutions1010. BibliographyAppendicesAppendix A: O’ Natural Hair Care Product List11Appendix B: O’ Natural Hair Care Flyer131. BackgroundO’ Natural Hair Care is a new hair care line originating in Houston, Texas. After reviewing the current hair care market our developers wanted to make a product that was unique and available. After surveying the market we discovered that the natural hair care products were slim to none and the few that were available were very expensive and not contusive to helping natural hair grow healthy.O’ Natural Hair Care base operation is located in Richmond, Texas. The humid temperature and available acreage there allows us to farm and plant the required plants for the product line. The only plant we have to outsource for is the Cupuacu (coo-poo-wah-soo) plant which is native to Brazil. Although in Richmond the tropical climate can be somewhat duplicated but not enough for the Brazilian Cupuacu plant, so there for we have to buy this plant or have it shipped in. Either way by growing the Shea plant and sunflowers along with the mangos it cuts cost and allows us to put more effort into production. The natural hair care market is a booming business but so few companies have taken genuine interest in it. There are not many companies who are dedicated to educating and providing a healthy alternative to chemical treatment and this is why the O’ Natural Hair Care Company has so much room for success. 2. Strategic Focus and PlanThis aspect of our marketing plan focuses on the strategic planning of O’ Natural Hair Care to make it a successful business. There are three areas that we will discuss: mission statement, financial and nonfinancial goals, and competitive advantage.Mission StatementTo educate and promote all walks of life about the benefit of keeping hair healthy and natural and how to embrace what you were born with. GoalsFinancial:1.To break-even in profits versus losses within the first year of business.2.Within 2 years be available in most urban markets in 80% of Unites States major cities.3.To gain a top competing ticket amongst the major hair care product companies.Nonfinancial:1.Within 3 year hold hair care seminars nationwide.2.Help stimulate the natural hair growth movement.3.Stimulate the economy with in the next seven years by expanding the production plant.4.Develop more products that will also help and promote healthy hair even if it is chemically treated.Competitive AdvantageO’ Nature Hair Care’s most obvious competitive advantage is the product line. The product is for natural non chemical treated hair and will be the second product in existence of its kind in the same price range. The difference is the ingredients. The main ingredient is Cupuacu (coo-poo-wah-soo) Butter. Found in the heart of the Amazon Rain Forest, moisturizing Cupuacu Butter has for generations been the secret of Brazilians for beautiful hair. Combined with softening Mango Oil, our product weightlessly hydrates to provide lasting curl definition and control. Limp curls and waves become feather-light with bounce and shine minus the frizz and the crunch.3. Situational AnalysisThe SWOT (Strength, Weakness, Opportunities, and Threats) analysis provides a brief description of the present environment in which O’ Natural Hair Care is operating. This is a quick overview of our position among internal and external forces influencing our operating strategies.SWOT AnalysisStrengthsWeaknessesInternal Forces•New organic formula•Un heard of product • Only one competitor •New business to owners and customers•High depth of product line•Expensive marketing costs•Relatively inexpensive cost•Web development for web site •Plants are locally grownOpportunitiesThreatsExternal Forces•No local competitors•Other well-known products •The Natural hair movement is growing •One product is in the same price rage •Target Market is easily accessible•Branching out to the national market •This product can be used by all natural hair texturesPoor Advertising Will provide more options for hair care. -Social Trends *advantageNow in the Ethnic Community more and more women are going with the natural hair trend. They are ceasing the chemical straightening regiment that women of color have embraced for decades since Madam C.J. Walker first introduced the first hair relaxer. Because the natural hair market is scarce with such few selections, O’ Natural Hair Care will boom in the urban market. There is a hair supply store or beauty supply on every corner in every major city with a large urban area in the United States. This new natural hair movement is the best time to promote this product. It does not seem to be a new fad either it’s here to stay-Economic Trends *AdvantageBecause the target market is women of color where most live and are populated in the urban areas of town this will make distribution fairly easy for we know the main demographic areas to target. This product will be great for the economy because one it is not made with petroleum or mineral, there are no harsh chemicals in the product it is made of all natural products. If there was a major spill of product it would not harm the eco system because of the all-natural ingredients (mango oil and capuacu butter). This product is not tested on animals and is free of any paribens that would be harmful to skin and eyes or cause any possible chemical reactions. -Technological Trend * DisadvantageThere are no products on the market at this moment like this and this product does not involve or effect technology. It does not change how we use or evolve with technology it is actually taking everything back to the roots. It is all natural ingredients and no chemicals. This can be mixed in the kitchen sink if you have the right formula. -Competitive Trend *AdvantageThere are no products in the market like this one. There are a few that have the same target market but non that is as unique as this. Even in terms of price there is none more affordable than this. The average natural hair care product ranges in price from twenty to fifty-five dollars where as my product will average nine dollars per item. You can have the entire hair care system for less than thirty dollars. This includes shampoo, conditioner, moisturizer and styling hair dress. The size of my target market is constantly growing. I have a small but large demographic. While the trend of going natural is growing every day and spreading like wild fire across the nation. Focusing on urban areas where the target is largely located and where distribution will mainly be is the main focus for getting the product out to the masses. The start will be here in Houston, TX then to Dallas and when we branch to other states California will be next, then Georgia, next Illinois, last but no least New York. These cities have proven by the U.S. Census to have the largest populated urban areas. Competitor AnalysisWomen are constantly spending money on hair care products. All women want to have healthy hair that grows and is manageable. They will spend whatever cost and necessary for a great product but a woman is always looking for a bargain as well. With the economy the way it is no one wants to spend lots of money on visits to the salon or lots of money on a product that gives them mediocre results either. The few hair products and companies that cater to natural hair are priced very expensively. The majority of these products are priced between 21 and 45 dollars for a 6oz. bottle. The one natural product that is also organic is priced around the same as O’ Natural Hair Care Products around 7-9 dollars for an 11oz bottle. This is definitely a competitive advantage. With the target market being mainly middle class saving a dollar or two will appeal to them. Right now there is only one competitor but they are only found in Target, Wal-Mart and Sally’s Beauty Supply. They are a major competitor because they offer an organic light product without mineral oil, petroleum, parables and no drying alcohols. They offer the same amount of product with in the same price range 7-10 dollars. The only edge we have is that when tested the moisture in the product does not last as long as ours. Company AnalysisO’Natural Hair Care Products is a family built product line. Michelle Beaux is the lead product designer. She has had a product line before and sold it to Revlon. She has a degree in chemistry and has over 25 years’ experience as a licensed hair care specialist and stylist. Her specialty for the last 15 years has been natural hair. Vanessa Broughton is in charge of marketing and promotion. She also did the research on the major moisturizing ingredient the Capuacu Butter we use in each product. She discovered it while on a vacationing trip in Brazil. Katrina Long is the Production Manager and Finance Manager she has a degree in finance and has been Production Manager for 13 years for Frito Lay’s distribution center. O’ Natural Hair Care is in the introduction stage of its marketing strategy. The family hopes to make this product a new trending subject for all hair care product lines and producers to increase competition would mean to continue to make new and improved hair care products at affordable prices. In order to provide high quality products with high quality ingredients, the product design team grows most of the ingredients in their home town of Kendleton, Texas and the only one they have to outsource for is Capuacu Butter. They have turned the old family barn into a ware house and bottling plant. There they mix, refine and bottle the product and it is stored in the top of what was a barn turned into a product testing facility.Customer AnalysisThe customers of O’ Natural Hair Care will be mainly African American. They will be residents of mainly urban areas in major cities are of middle-income and are naturalists. They enjoy having the freedom of not depending on chemicals to maintain their hair and will enjoy an organic healthy hair stimulating product. The target market is located in areas where there is a beauty supply store on every corner so places to offer the product is readily available and offer people who want to save money free samples of a great product is only going to garner success. Industry AnalysisNation-wide healthy and organic alternatives are becoming a way of life. Not only are people watching what they eat but also what they put on their skin and in their hair. People are realizing that harmful parables and free radicals are in and around everywhere and we need to protect ourselves from them. They are harmful in our diet, for our skin and hair. 4. Market-Product FocusThis section describes the marketing and product development for O’ Natural Hair Care and also provides information concerning the marketing and product objectives, market-product grid, target markets, points of difference, and positioning of O’ Natural Hair Care.Marketing and Product ObjectivesO’ Natural Hair Care’s marketing aim is to promote its products as healthy organic alternative to the normal petroleum filled, drying alcohol that most hair care products have and the product line makers provide. In order to accomplish this task, O’ Natural Hair Care will focus on current markets, look to expand into new markets by extending our services, and continually offer new products. The primary objective O’ Natural Hair Care is to market our products to customers and show them that the product is good for the hair and you will see instant results. Although we produce in small rural area, we are not far from the city of Houston and this will be our first market and with this being such a large city the initial opportunities are endless. O’ Natural Hair Care also desires to extend its services in order to tap into new markets. This will include sponsoring hair care seminars at colleges, natural hair show competitions, and also maybe start a scholarship fund for beauty school students. This too attracts a lot of positive attention and in a way is also a form of marketing and advertisement. Different types of hair our products will cater too. There are many different types of natural hair. Courtesy of Michelle Beaux and her many years of experience in hair care we have a classification chart for you to view the different types of hair. Michelle Beaux, who has won numerous awards for her work on their first product line, has worked out a curly hair types system, which naturally curly readers have adopted and modified. Many of you have seen it referenced on the discussion boards. For your convenience, we've put together these handy charts detailing the different types of curly hair, as well as added some recommendations and curly hair tips for all types of curls. You'll find information about all the curly hair types: Type 2a hair, Type 2b hair, Type 2c hair, Type 3a hair, Type 3b hair, Type 3c hair, Type 4a hair and Type 4b hair. We also offer celebrity examples to show what kind of hair this looks like.Type 2 - Wavy HairFacts• The wave or curl forms throughout the hair in the shape of the letter "S"• Type 2 hair sticks close to the head; it won't bounce up, even when layered• There are three Type 2 subtypes:2a: Fine, thin and very easy to handle; easily straightened or curled2a celebrities: Scarlett Johansson, Naomi Watts, Cate Blanchett2b: Medium-textured and a little resistant to styling; has a tendency to frizz2b celebrities: Joss Stone, Nelly Furtado, Carrie Underwood2c: Thick and coarse and more resistant to styling and will frizz easily2c celebrities: Jennifer Nettles, Daisy Fuentes, Brittany SnowType 3 - Curly HairFacts• There is a definite loopy "S" pattern• Curls are well-defined and springy• Type 3 hair has a lot of body; it is easily styled in its natural state or straightened with a blow-dryer• It isn't coarse, like many believe, but soft and very fine—there's just a lot of it• Combinations of Type 3a and 3b curls are common• There are two Type 3 subtypes:•3a: Curls are naturally big, loose and usually very shiny.Circumference: sidewalk-chalk size•3a celebrities: AnnaLynne McCord, Debra Messing, Taylor Swift, Nicole Kidman•3b: Medium amount of curl, from bouncy ringlets to tight corkscrews.Circumference: Sharpie size•3b celebrities: Julianna Margulies, Keri Russell, Bernadette Peters, Melina KankaredesType 3c - Curly Kinky HairSubtype 3c is really more than a subtype. It's a type naturally curly members developed because the original system left out this hair type, which falls between 3b and 4a, having its own special characteristics.Facts• Type 3c hair has tight curls in corkscrews• Circumference: Pencil or straw• The curls can be either kinky, or very tightly curled, with lots and lots of strands densely packed together• Getting this type of hair to blow dry straight is more challenging than for 3a or 3b, but it usually can be done• The very tight curls are usually fine in texture• 3c celebrities: Heather Headley, Alicia Keyes, Jada Pinkett-SmithType 4 - Kinky HairFacts• Type 4 is kinky, or very tightly curled, with a clearly visible curl pattern• Circumference: Crochet needle or even smaller• The hair is very wiry, very tightly coiled and very, very fragile• Type 4 hair can range from fine/thin to wiry/coarse with lots and lots of strands densely packed together• Type 4 hair has fewer cuticle layers than any other hair type, which means that it has less natural protection from the damage you inflict by combing, brushing, curling, blow-drying and straightening it• Type 4 hair is known to shrink up to 75% of the actual hair length• There are two Type 4 subtypes:•4a: Tightly coiled hair that, when stretched, has an "S" pattern, much like curly hair. It tends to have more moisture than 4b; has a definite curl pattern•4a celebrities: Macy Gray, Monique Coleman, Leela James•4b: Has a "Z" pattern, less of a defined curl pattern. Instead of curling or coiling, the hair bends in sharp angles like the letter "Z"; has a cotton-like feel•4b celebrities: Esperanza Spalding, Jill Scott, Erykah Badu Because there are so many different types of natural curly hair and the factors of that make this hair healthy are so diverse it is hard to create a product that caters to all these hair types but we have done that. This product is not too greasy nor will it dry to fast. Either way it helps define curls condition hair and moisturize the hair. Target MarketsDuring the process of researching target markets for our marketing plan, we interviewed the current owners of Herbal Essence the distributions center and the marketers. This is a brand made by Clairol which is a products division of Procter and Gamble Clairol was stated in 1931 by an entrepreneurial chemist and his wife who named their enterprise after a hair-coloring preparation they found while traveling in France. In the 1950s, after two decades of selling the company’s hair tint to beauty salons, Clairol became a household name when it launched the first one-step home hair color formula, Miss Clairol Hair Color Bath, which debuted with the now-famous catchphrase, “Does she…or doesn’t she? Only her hairdresser knows for sure.” Within six years of Miss Clairol’s launch, 70% of women were coloring their hair.In 1949 the single-step Miss Clairol Hair Color Bath was introduced to the U.S. beauty industry. When Clairol sales representatives gave a live demonstration of Miss Clairol at the International Beauty Show in New York City, thousands of hairdressers and beauticians gathered to watch. Bruce Gelb, son of Lawrence and Joan and a former Clairol executive described the scene in the New Yorker article: “They were astonished. This was to the world of hair color what computers were to the world of adding machines. The sales guys had to bring buckets of water and do the rinsing off in front of everyone, because the hairdressers in the crowd were convinced we were doing something to the models behind the scenes.”O’Natural Hair Care has two specific target markets. The first is all African American women in all urban areas and cities in America. The second is all women who have the confusing task of learning how to manage their curly or kinky coiled hair. Points of DifferenceWith Mango Oil and Brazilian Cupuacu Butter. Found in the heart of the Amazon Rain Forest, moisturizing Cupuacu (coo-poo-wah-soo) Butter has for generations been the secret of Brazilians for beautiful hair. Combined with softening Mango Oil, our Feather Whipped Curl Cream weightlessly hydrates to provide lasting curl definition and control. Limp curls and waves become feather-light with bounce and shine minus the frizz and the crunch.PositioningFound in the heart of the Amazon Rain Forest, Cupuacu (coo-poo-wah-soo) Butter has for generations been the secret of Brazilians for beautiful, moisturized hair. Combined with softening mango oil, our curl reviving spray refreshes hair with instant hydration and revives coils, curls, and waves for superb curl definition that lasts. Next day coil, curls, and wave’s look and feel refreshed and brilliantly defined without shrinkage or frizz. 5. Marketing ProgramProduct StrategyThe product line of O’Natural Hair Care is relatively simple. We are offering the following hair care productsCurl Reviving SprayButter Whip Coil CreamFeather Whipped Curl CreamThermal Smoothing SerumHealing Thickening CreamStimulating Scalp OilNurturing Repair Shampoo; With Green Tea and Shea Butter (10 oz.)Reconstructing Deep TreatmentStrengthening Oil MoisturizerO’Natural Hair Care only uses the freshest ingredients to ensure product quality. Our home grown are grown fresh season to season and we make sure to rotate the crop so that we do not drain the land of all its nutrients and make it barren. Our formulas are available to the public so that they know that we use all natural ingredients and no harmful chemicals are added so that hair grows out natural and healthy. Price StrategyPricing starts at 6.99 except for the Reconstructing Deep Treatment which costs 10.00. The pricing on this product is a little more because it comes in a larger container and the complexity of the formula for this product production takes a longer time to cure and make. Promotion StrategyWill we be promoting with flyers and offering free samples to the beauty supply stores to give to customers who spend 10 or more dollars in the store that day. Also we will be giving salons samples to try on their clients to get a report of how well they like the product and let them see how well the product works on the hair styles. Black Hair and Ebony Magazines are writing a feature article on natural hair featuring our product line. They have even offered us 3 months of full page advertising spots. We have contacted local supermarket such as Wal-Mart, who is offering an excellent opportunity for promotion. O’Natural Hair Care will print coupons on the back of Wal-Mart customer receipts for a 2.00 off coupon. Walmart is well known for servicing locals as well as travelers we will reach a broad segment of people throughout all seasons of the year.O’Natural Hair Care is also printing flyers with 2.00 coupons to distribute throughout Houston and will soon market to other major cities as well. Coupons will be made available to our online customer base along with the chance to sign up to receive newsletters and sale offers. The promotional coupon strategy will only be offered during an introductory period and will be printed with an expiration date in order to introduce O’Natural Hair Care products to the public. Place StrategyProduct placing will begin in the urban areas in major cities. Placing in these areas would be easier than non-urban areas because of the large number of beauty supply stores on just about every corner. Once sale volume increases we can afford to move supplies to other major stores such as Target and Sally’s Beauty Supply. One of the major beauty supply chains located in every city right now is Beauty Empire and we are already in talks with the chain in Houston to be able to place products on a shelf to sell once we get the samples out.6. Financial ProjectionsIn order to calculate a break-even amount, we averaged the prices of the creams, oils, moisturizers, and sprays. This price is averaged at $6.99 the fixed costs for O’ Natural would be $70,000 per year, which include loan payments, equipment costs, and selling and administrative costs. The unit variable cost is $4.00. This includes production costs per product, except the deep treatment and other miscellaneous costs. Using the following formula, we calculated the break-even point for O’Natural Hair Care:BEP = [FC ÷ (P – UVC)]BEPQuantity = [$70,000 ÷ ($6.99 – $4.00)] = 23,411 bottlesBEPRevenue = 35,000 sales × $6.99 (bottle) = $244,650The figure that was calculated was the number of bottles that must be sold to break-even. In order to determine the dollar amount, we multiplied this figure by the cost of an average bottle, $6.99. For O’Natural Hair Care to break-even in its first year of business, it must have $244,650 in revenue.7. OrganizationO’Natural Hair Care is locally owned and operated. There are three co-owners, Vanessa and Donjuan Broughton, and Katrina Long, who operate the day-to-day business of the plant. They make the decisions concerning products, ingredients, management, and personnel. Because O’Natural Hair Care is a new business, Vanessa Broughton, Michelle Beaux and Katrina Long will often work long hours to establish a good reputation. There will be seven other employees who will be employed at the warehouse to help manufacture and bottle the product, and as the business grows, Donjuan, Vanessa and Katrina hope to add more people to the staff at O’Natural Hair Care.8. Implementation PlanAs a new business, O’Natural Hair Care has a relatively short-term implementation plan. We have scheduled the following activities to be completed by the given dates:ActivitiesDates•Advertisements in newspapers•April, 2012•Magazine Article •May, 2012•Distribute flyers•May, 2012•Begin coupons online•June, 2012•Re-evaluation customer survey• August, 2012•Research Salon Testing •June, 20129. Evaluation and ControlO’Natural Hair Care has several objectives and goals that it aspires to meet. If for some reason those goals are delayed, perceived as unattainable or deviate from the original plan, corrective action must be taken.Possible Deviations1.There may not be enough demand and this could delay expansion.2.Customers may be dissatisfied with our products or our service.3.We have set a goal of expanding to a nationwide two years and for some reason that may not be possible.Possible Solutions1.If there is a lack of demand we could try to promote our products on the streets and also have open hair shows with the products.2.If can have a money back guarantee for disgruntled or unsatisfied customers.3.We can rearrange the nationwide distribution plan and make new projections to just go nationwide a little later there is always room to grow. .Appendix AO’ Natural Hair CareProducts•Curl Reviving Spray.•Butter Whip Coil Cream•Feather Whipped Curl Cream•Thermal Smoothing Serum.•Healing Thickening Cream•Stimulating Scalp Oil.•Nurturing Repair® ShampooWith Green Tea and Shea Butter (10 oz.)Reconstructing Deep TreatmentStrengthening Oil MoisturizerPrices6.996.996.996.999.995.995.999.996.99 Appendix BNatural Hair Care Flyer Let your Natural Hair Show And Let Chemicals GoLet your Natural Hair Flair Receive 10% off your nextpurchase ofO’Natural Hair Care ProductExp. 04/22/2012Receive 1.00 off any Naturally Beautiful Hair Care Product Exp. 04/22/2012
Marketing plan revision

Marketing plan revision

Question # 00002472 Posted By: vbroughton73 Updated on: 10/19/2013 07:05 AM Due on: 10/20/2013
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