Introduction 2. Mission of Statement Organizational Resources & Opportunities.. 4. Analysis of the Environment SWOT Analysis.

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1 Table of Contents Introduction Mission of Statement... 3 Organizational Resources & Opportunities.. 4 Analysis of the Environment... 5 SWOT Analysis. 6 Organizational and Marketing Objectives. 7 Organizational and Marketing Strategies.. 8 Target Market. 9 Marketing Mix: The Product... Distribution Objectives Promotion Objectives... Price objectives What changes will we make in the future?

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3 Introduction Managers: Marketing Manager Kara Buggy Production Manager Kara Buggy Promotion Manager Marissa Dubaich Pricing Manager Marissa Dubaich Distribution Manager Taylor Zamiska Company Name: TKM Beauty Product: The Lush Brush The Lush Brush is a hairbrush with interchangeable hair serums that are placed in the handle of the brush. The hair serum comes through small holes of the head of the brush while the consumer is brushing their hair to evenly apply the nutrients. There are multiple substitutable serums that can help with hair growth, hair thickness, color treatments, hair detangler, and a hair mask. The hair growth serum, hair thickness serum, and hair detangler serum are used with the brush after washing the hair. The color treatment and hair mask are used with the brush on dry hair and washed out after thirty minutes. The Lush Brush Starter Kit comes with the Lush Brush and one of each of the all-natural hair serums. Our product is aimed towards the beauty market, but more specifically the hair-care market. 3

4 Mission Statement TKM Beauty is a new thriving nation-wide manufacturer and marketer of health and beauty products. The company strives to meet the needs of men and women improving their hair care. Regarding the other companies, we are more than capable to compete with other big name brands in ways of using natural, organic ingredients and top of the line technology. 4

5 Organizational Resources & Opportunities TKM Beauty is introducing the new product, The Lush Brush into the health and beauty market, but more specifically the hair-care market. The hair-care industry is growing rapidly and would be a great time to introduce consumers to a new product. By 2015, the market is expected to hit a 19% expansion since 2009 and generate a revenue of $58 billion. Women, more now than ever, are interested in the health of their hair which is why The Lush Brush will be a great success in such a thriving market. As women, we are the company s owners as well was main managers, which is why we know exactly how to market our product to other women and understand their needs. Internally we have the main necessities and ideas for our product as well as degrees in marketing, business management and communications. The ownership of the business, marketing strategies, and sales promotions are well taken care of. Although, we will also need to obtain a graphic design team for the design of the product and packaging, a web designer to maintain the company s website, a warehouse for inventory and production, sales analyst and an accountant. 5

6 Analysis of the Environment Technology Use the advanced technology to create products fast and efficiently Create all-in-one product Social and cultural factors People are interested in beauty supplies to enhance healthier hair United States culture is always looking for new ways to beautify themselves Women always want longer/healthier/voluminous hair Economic People of the United States spend billions of dollars each year on lifestyle and health products Competition Competing against other large name brand beauty products such as: Conair, Chi, and Paul Mitchell Politics Use politics to help gain way into the foreign selling market in future Laws and Regulations Test products on human hair rather than animal hair All products must be tested All products must be USDA organic By using organic products, it would have to be FDA approved 6

7 SWOT Analysis Strengths: All organic products; no animal testing USA manufacturing Easy purchasing through online store Great company communication due to the small business Weakness: New company Loyalty lies elsewhere/with other brands Few products to offer Limited profit to spend on advertise the new company Opportunities: Room to grow/expanding New beauty technology Demand for health and beauty products Can be sold in other venues, not starting from scratch Threats: Other beauty product companies Price/Cost of production Availability Young company/unknown 7

8 Organizational & Marketing Objectives Present Two Years: TKM s goal is to help men and women achieve healthier beauty results by using our product. Corporate office will be located in Pittsburgh, PA o Consist of a production facility, a warehouse for completed inventory, and sales department. Transition from online store to superstores such as Wal-Mart, Target, and Giant Eagle Market District Begin new product design to add to product line Profit Margin planned to be 51% o Bundle pricing our product as a starter kit with the brush and five starter hair product included priced at $35 o Costing a price to the company at $17 to make At the end of 2 years, after our product has had more exposure to more consumers we hope to have a 24% sales increase Three Six Years: Begin product differentiation in older products Expand different departments nationwide Multiple products along with The Lush Brush become nationwide sellers Aim for market share to be 10% of the market o Seven Ten Years: The beauty industry is a large industry, so smaller market shares are likely to be more achievable Expand our product range we hope to have at least 28% of the market of beauty products competing against other large name brand beauty products such as Conair, Paul Mitchell, Chi, etc. Much larger product line including hair, skin, and nail products All products in high demand Profit Margin aimed to be 67% Retail stores consisting of all our own products 8

9 Organizational & Marketing Strategies Diversification: The Lush Brush is a new product that we are marketing into the health and beauty industry. We are introducing the product by adding benefits for the consumer to increase the appeal of the product. Competitive Advantage: Our competitive advantage is having natural, organic ingredients and top of the line technology at a low cost that is affordable. Value: We offer the best product for the best prices at a low cost. In addition, we offer a 30-day guarantee for you to test this top of the line technology. If by any reason you want to return it, your order is backed by a 100% Money Back Guarantee. 9

10 Target Market Demographics: Age: Twenty-two to thirty years old Gender: Female Race: Caucasian Ethnicity: American Income: $50,000-$80,000 Education: College Degree Occupation: N/A Family Size: Single/Engaged Family Life Cycle: N/A Religion: N/A Social Class: Middle-Class Psychographics: Personality Attributes: Hygienic, successful, well-liked Motives: Healthy living, good appearance Lifestyle: Interests in fashion, health, and beauty, exercises regularly, shops organically Geography: Region: Nationwide Area: Suburban City Size: 300,000+ people County Size: N/A State Size: N/A Market Density: high-density market Climate: N/A Terrain: N/A Behavioristic: Volume Usage: N/A End Use: To achieve healthier hair Benefit expectations: Healthy, smooth hair without the use of harsh chemicals Brand Loyalty: N/A Price Sensitivity: N/A 10

11 Marketing Mix: The Product Product: The Lush Brush Description of Product: The Lush Brush is a hairbrush with interchangeable hair serums that are placed in the handle of the brush. The hair serum comes through small holes of the head of the brush while the consumer is brushing their hair to evenly apply the nutrients. There are multiple substitutable serums that can help with hair growth, hair thickness, color treatments, hair detangler, and a hair mask. The hair growth serum, hair thickness serum, and hair detangler serum are used with the brush after washing the hair. The color treatment and hair mask are used with the brush on dry hair and washed out after thirty minutes. The Lush Brush Starter Kit comes with the Lush Brush and one of each of the all-natural hair serums. Product Features/ Benefits: The Lush Brush Starter Kit comes with the interchangeable brush, and five samples of different serums. A single brush and different serums are also available to buy individually. Type of Consumer Product: Our consumer for the product is going to be any Caucasian woman ranging in age from twenty-two years told to thirty years old who are looking for healthier hair using Product Line/Product Mix: The product line consists of the Lush Brush starter kit, which includes the interchangeable serum brush and five hair serums. We also offer the brush and hair serums for individual sale. Production Differentiation: As our company expands, we will create different types of interchangeable brushes and new hair serums to keep the product up to date with customer demands Product Positioning: The Lush Brush by TKM Beauty will be all-organic and made easily available and affordable. It s the first of its kind in its respective market. Type of Brand: Our company is a private distributor brand. Our product is manufactured and sold by our company, TKM Beauty. Brand Strategy: TKM Beauty plans to use individual branding. Each product in the company will be given it s own name. Brand mark/trademark: A silver brush with our brand name written across. 11

12 Brand name/trade name: TKM Beauty in purple colored, cursive font Slogan: Look good, feel good Package Strategy: Bright, sleek looking package that is easy to open and catches the consumer s attention by looking expensive at a relative inexpensive cost. Labeling: The starter kit will be labeled with All-in-one and all other products will be labeled as organic or all-natural. TKM Beauty 12

13 Marketing Mix: Distribution Objectives Distribution strategies: o The distribution strategy that TKM Beauty will use is the exclusive distribution strategy because the company will use single outlet, TKMBeauty.com, to cover a fairly large geographic area. TKM Beauty will be a merchant wholesaler because we are an independent business that will sell the Lush Brush to our consumers. We will be using direct marketing and utilizing the Internet to sell our product. 13

14 Marketing Mix: Promotion Objectives Promotion Objectives Advertising Campaign: Target Market: o Twenty-two to thirty years old Caucasian women Advertisement Objectives: o Raise awareness of the new product and company. o Communicate to consumers the benefits of the product o Build confidence in the new company and product Advertising Platform: o Advertise as New, Organic, and All-Natural o Money-back guarantee program o Satisfaction guaranteed Media Plan: o Commercials on television networks such as Local news channels, MTV, VH1, TLC, E, Lifetime. o An advertisement segment on QVC, the televised home shopping network. o Magazine Advertisements in magazines such as Cosmopolitan, Women s Health, U.S. Weekly and other tabloid magazines. o We choose these advertising strategies because many women within our target market are attracted to reality TV, tabloid magazines, up to date news, and products that can enhance their appearance. Our advertising message: o We plan to portray to our target market is a new product that can enhance the health and beauty of their hair. We plan to appeal to these women with our organic products and low prices. Our advertisements display this in a glamorous matter to attract our target market to show them they can all have beautiful, healthy hair in a safe and easy fashion. Public Relations: Magazine companies writing an article about our product, The Lush Brush, and their personal opinion on the product. Our advertisement will be in the magazine, Cosmopolitan, along with an article regarding the reviews of our product that was given to Cosmo employees to test for themselves. Sales Promotion: 14

15 We plan to use the pull-policy to promote our product directly to consumers to develop strong consumer demand that pull our product through the marketing channel Sales Promotional Plan o One $3 coupon will be in the Lush Brush Starter Kit for products that are for individual sale, such as the brush itself, and the individual hair serums to keep consumers using the product after they purchase the starter kit. Marketing Mix: Price Objectives Pricing Objective: Market Share Many factors influence how we are going to price our product. We d like to have a low enough price to attract customers, beat out competitors, but also be manufactured in the United States and use organic, all natural products in our hair serums. Since we are introducing a new product, we need to increase our market share by offering a great product at an affordable price to beat out competitors. Pricing Strategy: New-Product Pricing: Price Skimming Being that we are new company with a new product, our price needs to be high enough to recover development costs quickly but not high enough that customers will turn to other competitors. Determined Price: The Lush Brush Starter Kit: Includes the Lush Brush, which is our main product, and samples of each of our 5 all-natural hair serums. Priced at $35 and includes a $3 coupon on any of our products that are for individual sale. The Lush Brush is for individual sale at $10 Each individual container of all natural hair serum, which can be used up to 10 uses per container is priced at $7 per serum. 15

16 What changes will we make in the future? Marketing Objectives: We d hope to become a large name brand beauty company Have our own health and beauty store Competitor: ULTA Beauty Store Obtain 37% of industry s market share Become an international health and beauty company Marketing Mix: Product Offer larger product line and product mixes Hair care, skin care, and nail care Offer more benefits and features to our products with new technology Promotion: Expand our public relations Offer more coupons, rebates, and consumer contests for products Offer discounts to wholesalers Move from pull policy to push policy Distribution: Move to intensive distribution by using all available outlet to distribute our products. Distribute to general-merchandise retailers, department stores, and superstores. Price: Depending on how consumers react to the product s price will depend on how we price our products. 16

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