Marketing Plan for Benefit to Increase Market Share in Its Existing Market Segment Assignment

Marketing Plan for Benefit to Increase Market Share in Its Existing Market Segment Assignment Words: 2410

Marketing Plan 1. Terms of Reference This is a detailed marketing plan for Benefit to increase market share in its existing market segment. In order to do this, the market and the company’s position in the current market will be analyzed and from this, a marketing plan will be developed and actions to be taken will be set. 2. Executive Summary This report will examine the company as it is now and identify it’s strengths and weaknesses. After setting out targets for the company, a strategy will be employed to help meet objectives.

This report considers how best to help grasp opportunities and become a leading competitor. A marketing plan is developed and decisions are made in respect to strategy and implementation of the idea. 3. Business Mission To offer ‘feelgood’ beauty to women of all ages with products which are irresistible, fun and uniquely problem-solving. To develop a strong bond with consumers to enhance brand loyalty. 4. External Marketing Audit Macroenvironment Legal In the UK, animal testing for cosmetics is now fairly uncommon.

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However in the US, there is evidence to suggest that animals are still being tested on. Laws may be imposed which prevent animal testing, which could alter the progressions in new products which can be developed due to the limitations of chemicals we can use. Ecological The demand for products that are organic and made of natural ingredients is on the increase. This means that the company may need to consider how this affects their consumers and then introduce a range of products, which meets the market’s new demands.

The demand for “green” packaging is also becoming more popular, using environmentally friendly production techniques using and packaging which decomposes or can be recycled easily. This also offers an “added feel-good” value to the product. Economical Rise in interest rates from 5% to 5. 25%, the third rise in three months. The increase means that mortgage repayments are higher so people are more likely to save than borrow, so they have less disposable income. This means that they are less likely to buy luxury items such as make-up. Unemployment rate in the UK in 2005 was 4. % (2005 est. ) (CIA World Factbook, 2006) Although it has been quite high for recent years, it is unlikely to have a significant impact on Benefit because the target market segment is higher income earners. Moreover it could affect other parts of the economy i. e. interest rates and inflation which vary the amount of income assigned to non-essential items. Socio-cultural In the current “broadening of culture” within the UK: the introduction of wider ranging religions, of which some prohibits the exposure of the skin and wearing of make-up.

This means that there could be a substantial shift to lower make-up usage within some ethnic circles. However other social trends in the UK with girls of younger ages using make-up offers a new youth market to explore. Also there is a huge shift in male grooming habits, and it is becoming more acceptable for men to use cosmetics which could be another potential target market to investigate. There is a trend in lifestyle changes for women aged 25-34. They are starting families later on in life and making their career a priority. This means that cosmetics are continuing to be an important part of their lifestyles for a longer period nd they have a larger percentage of disposable cash to spend on luxury items such as cosmetics. Technological The increasing popularity of plastic surgery and Botox?? injections reduces the need for make up, however the increasing figures do imply that more and more women are becoming obsessed by their appearance and taking more extreme measures to improve the way they look. The Market According to research reports by Keynote, British people spend more than ? 10bn a year on beauty products. In 2005, retail sales of cosmetics and fragrances increased in value by an estimated 6. % to ? 1. 7bn at retail selling prices (RSP). Between 2001 and 2005, decorative cosmetics showed the strongest growth. The value of retail sales of cosmetics and fragrances, is anticipated to grow at a fairly modest rate (by between 1. 9% and 2. 2% a year) over the next 5 years (to 2010). (Mintel, Report on Make-up, 2006) Competition There is a lot of competition in the make-up industry so it is important that the product range is unique and innovative. The main competitors in the premium market are Clinique, Estee Lauder, Lancome and Max Factor.

They are all well established brands which compete in the same market as Benefit. It is fairly difficult to overcome the entry barriers into the market because there are already a lot of successful and well established brands. In the make-up industry, consumers tend to be loyal to particular brands, and repeat purchase or if they change their products, they are likely to choose a well known brand. 5. Internal Marketing Audit Strategic Issues Analysis Marketing Mix Effectiveness ??? Product The products are, to some extent unique; they are dissimilar to a range of products that any other brand offers.

Benefit sells from a make-up counter as well as a minor range of body products, fragrances and gift sets. The packaging of the products is distinctive and easily recognisable. ??? Promotion The company relies solely on word of mouth for promotion of their products and does not use any sort of advertising. This could be improved by introducing some sort of marketing strategy. ??? Price Our products retail at quite high prices compared to some more common, mass brands. The price of our products builds our reputation because the customers feel good if they have spent a slightly more expensive item of make-up. Place The places where we sell our products are well positioned for the types of customers we wish to attract. Up-market department stores tend to attract slightly older and wealthier consumers than other locations. Services: Extension of the 4-Ps. (Jobber, 2004) ??? People The employees that have direct contact with our consumers have been fully trained to give the prospective customers guidance on the types of products to try and how to use them. Their intention is not to pressure the consumer into a purchase but to gain their interest in the product range.

The service which is provided is on a more personal basis than some of the leading competition which gives us an advantage. ??? Process The process which the customer experiences should be a pleasant one, feeling that the make-up specialist has their best interests at heart and that they are devoted to meeting your needs. ??? Physical Evidence The environment should be an inviting one with all the products ready to test if the consumer so wishes. There are stools for the customer to sit at and have the products tested on them or the opportunity to try the products themselves.

One weakness of this situation is that these counters are often right in the centre of the store so they can feel under the watchful eyes of other customers in the store. 6. SWOT Analysis Strengths ??? The products we offer are unique and modern. ??? We have already established our brand name and are in the process of expanding our distribution channels. We have departments in large high-street retailers such as Boots, Selfridges and House of Fraser giving us great access to everyday shoppers who may be shopping for other goods in the same store. Weaknesses ??? Brand awareness is fairly low.

Although our make-up counters are eye-catching, if customers haven’t previously heard of Benefit, they are unlikely to try our products. ??? The market segment we find ourselves in is too narrow, and extremely competitive. Our prices are too much in competition with other premium brands to attract the younger generation and students. However our products still have a youthful feel about them, which is appealing to older women. Older women are more likely to be brand loyal to Estee Lauder or Lancome who have been popular for a long time. Opportunities ??? Marketing campaigns are one of the key competitive factors in the premium make-up industry.

We can increase market share by retaining our current, brand loyal customers as well as attracting new customers in our target segment as well as others. ??? Aforementioned, as trends in women starting families later are becoming even stronger, cosmetics are becoming a more important part of their lifestyle. ??? The colour cosmetics market is one of the fastest growing industries and people are becoming more obsessed with their appearance. It is predicted to grow by approximately 2% each year for the next 5 years. We have the opportunity to take advantage of this and become one of the leading competitors in the market.

Threats ??? Cheaper make-up brands are continually increasing in quality, as well as being further endorsed by celebrities and popular make-up artists. As interest rates rise and people have less disposable finance available, they are likely to purchase lower costing make-up, because it is the alternative to the premium costing, luxury end of the make-up sector. ??? The lack of promotion that our company does limits the amount that we can expand our company. We risk preventing the brand from becoming on a par with our leading competition and are losing out on customers to our competitors. . Marketing Objectives Strategic Thrust The strategic thrust for the company will be Market Penetration (Ansoff’s Matrix 1957). The company will sell its products to new customers in the existing market and will try and promote it’s company to it’s existing company so that they brand switch less often and become more brand loyal. Strategic Objectives In the present situation and with the future in mind, building market share and sales are the most suitable strategic objective. We are looking to promote the products we currently sell and to attract more customers.

Harvesting or holding the business could risk stunting the potential growth of the business at this stage. 8. Core Strategy Target Markets The company wants to continue to aim its products at young female professionals, with no children aged 25 ??? 34. The segment is a fairly big sector in the cosmetics market and is one that shows signs of growth. Competitor Targets It is hard to identify any weak competitors in the market however with brand such as Lancome and Estee Lauder, it would be difficult to change their reputation and attract different customers.

Max Factor seem to use celebrity endorsement to attract customers which could be an option we could consider at a later date. Competitive Advantage The competitive advantage will be being closer to the customers than it’s competitors and establishing a loyalty between the consumer and the business. It is important that this is recognised so we can strive to fulfil the company’s ambitions. 9. Marketing Mix Decisions Product The product is already of a good standard with distinctive packaging. The products are modern and they meet the demands of the consumers.

Consumers are invited to try the product before they purchase and shown how to use the products effectively. The products that the company sell are exclusive and are a significant advantage to the business. Promotion Promotion is the main place where the business will be changed. There seems to be a gap in the marketing for the company as they do not seem to do any advertising of such in the UK. This seems to be a problem as the majority of benefits’s customers display some sort of brand or product loyalty but we could increase sales by making more people aware of our make-up products.

A large promotional campaign shall be run, including classy and striking advertisements in glossy women’s magazines. Such as Cosmopolitan, Red, Company, Glamour and also featuring in the glossy magazines which come with Sunday Papers such as “You” magazine, inside The Mail on Sunday and “Style” magazine which accompanies The Sunday Times. These attract the sort of women we want to attract. Generally, The Sunday Times attracts the slightly older end of our market which will could potentially expand our target market beyond both ends of the range boundaries.

The customers which we gain will tend to be brand loyal so the more we can attract, the better. It will also help remind our current customers of our existence. Price The price, although a little expensive and although there is the possibility that if we lowered the price of our products, we may attract customers of a lower socio-economic group, this would introduce more competition as there tend to be more competitors in the lower price cosmetic market. If we were considering lowering the price we would also need to consider if we were prepared to lower the price at the cost of lowering our reputation.

Place Benefit are currently expanding the places which they vend their products. They have recently opened several boutiques and they continue to open make-up counters in department stores, as they first started out. Place is also a factor in relation to promoting our company. We will also be running a series of TV adverts to try and raise awareness of our brands and where you can purchase our products. We will also be advertising on Billboards and posters across cities where we have outlets to remind customers about our company and try our products. 10.

Organisation and Implementation Organisation The current marketing department needs to acquire more staff in preparation for the launch of the marketing campaign. The marketing team will be in charge of the look of the campaign and getting the advertising into places where it will be seen and noticed. The intent of the campaign is to be as striking and as big as it can be within our budget. The advertisements need to match our products in addition to capturing peoples imaginations. The success of the campaign will rely on the teamwork of the marketing department.

Implementation With regards to implementation, the way in which the business functions won’t be any different. Potentially it could be a good idea to launch one or more new products at the time of the marketing campaign to attract peoples attention but we must remember that the target is to raise awareness of our company. The campaign will last for approximately 3 months of the year, the beginning of August to the end of October, so that we are not just marketing for Christmas, but customers will remember our campaigns when they are buying that extra-special Christmas gift.

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Marketing Plan for Benefit to Increase Market Share in Its Existing Market Segment Assignment. (2020, Jul 31). Retrieved October 27, 2020, from https://anyassignment.com/art/marketing-plan-for-benefit-to-increase-market-share-in-its-existing-market-segment-assignment-30518/