Final Business Plan

Marketing plan/ SWOT analysis

Heather Taylor

Kaplan

MT499: Bachelors Capstone in Management-peregrine

Prof:  Angie Sokol

July 31, 2016

Part 1

A well-developed strategy will aid in the realization of the business goals and build a strong reputation for your products. This marketing strategy helps in the focusing of the company products and services to the market segment most appropriate for them. The development process usually involves the creation of two ideas that are powerful to create awareness of the business and its products thereof (Hooley and Saunders 2004)

Marketing strategy is a component of a marketing plan that aims at directing the program toward the achievement of the organisational goals and objectives. Marketing plan is therefore a comprehensive document that lays bare all the regulatory advertising and marketing efforts and activities that are geared towards achieving these goals within a given duration of time. Marketing strategy has a pivotal role in increasing the sales volume of every organisation and realizing sustainable competitive edge. (Viardot, 2004) It encompasses all primary, short-term and long-term activities in the marketing field and it entails analysis of the initial strategic position of business together with the creation, evaluation and selection of market-geared strategies and hence lend to the goals of the firm as well as its marketing objective.

The process of marketing strategy development begins with the evaluation of the environmental factors, which entails the strategic constraints. It is therefore necessary to have a clear understanding of the external environment, including, technological, economic, cultural, political and legal elements of the environment. Secondly, goals are chosen and objectives set. A marketing strategy is, therefore, the explanation of all the specific actions to be taken to achieve the set goals. Marketing strategies are interactive and dynamic; partially planned and partially unplanned (Luke, 2004) this is to give room for the business to react to unforeseen challenges within the marketing environment as they try to keep focussed on a particular direction. A longer time span is preferred, usually five years. Simulation models such as customer lifetime value models aid marketers to conduct “what if” analysis to try and predict what might happen in future if certain conditions are met, and rate the extent to which such actions can affect the organisation’s revenue per customer and the churn rate. Strategies offer specification on how to adjust the marketing mix; firms can use tools such as marketing mix model to aid the resource allocation decision for various media and distribution of funds across a portfolio of brands.

An effective marketing heavily leans a well-informed marketing strategy. The strategy helps in the mission and vision statement, setting goals and objectives and outlines the steps a business needs to achieve the goals. The marketing strategy further influences how the entire business is run, it is, therefore, necessary that the plan is built in consultation with the marketing team. It is a far-reaching strategic planning tool that: Clearly defines the business together with its products and services; gives a clear position and role of the products in the service market; keeps the profile of customers and the competition, and gives the business a guideline on building a marketing plan and measure its effectiveness. The marketing strategy sets all direction and goals for every business (Stout, 2005). It must therefore be differentiated from a marketing plan which outlines the specific actions and action plan to be taken to realize the objectives. The following components must be taken into account while developing marketing strategy.

To begin with, a business need to identify its goals so that a set of marketing goals can be defined to anchor them. The company may aim at increasing sales volume, or reaching new customer segment. The goals should be as focussed as possible to ensure that the output is measurable. All goals have to be specific, measurable, achievable, relevant and time-bound (SMART). Secondly, the marketing goals need to be identified based on the given business goals. These goals are as a motivation to the entire marketing team thus help benchmarking purposes. The goals may either be long-term or short-term and may include increased penetration, or market development. The overall strategies must also be measurable. Ones the objectives have reached the strategy is revised from time to time.

After that a market research is conducted, it involves information gathering about the market. This information may include market size, growth, social trends, and the demographic factors. The business also needs to focus on the changes that occur in the market, to ensure that the marketing strategy remains relevant and targeted. Using the results of marketing research, the business builds a profile of prospectus customers and identify their needs. The purpose of the profile is to expose their buying pattern, covering all the details about how, where and what they buy. It is important to regularly review these trends to ensure that all the new opportunities are captured and for accordingly adjusting the strategy. The marketing strategy should allow maintenance of relationships with the current customers even as the quest for more customers grow. (Levi, 2014)

Apart from profiling of customers, there is need to profile the competitors too. This profile is developed by identifying their products, supply chain, marketing tactics and pricing strategy. This is used to have a glimpse of their competitive advantage. This leads to internal process analysis to identify the business’ own strengths and weaknesses to aid in the performance improvement in relations to the performance of the competitors. After all these, the business ought to develop strategies to support the marketing goals and objectives. For instance, my cosmetic booth will increase the awareness of its products to young people since they are usually the majority in every economy. Cosmetic booth shall increase social media response by ensuring that updates about the products are regularly posted either on Facebook, Twitter, and advertising on magazines that target young people as well as allowing discounts to students.

My cosmetic booth will engage the 7 Ps of marketing by joining the right combination of product, price, place, promotion, people, process and physical evidence to increase the likelihood of success. It is important to offer the right products to the customers at a reasonable price. The location (place) of my cosmetic booth will be so strategic to ensure that a majority of clients are captured. On the other hand, my business will use the most appropriate method of advertisement to ensure maximum promotion coverage. People are a core factor in business. Therefore cosmetic booth will make sure that there is effective two-way communication and always aspiring to better our services.

The cosmetic booth will conduct a research to test ideas and approaches to customers and staff and consequently, review what works and what does not. Various types of tactics will be chosen to make sure that the dynamic needs of clients are met in the most cost-effective manner. The tactics should also focus on the customer segment that is within the strategy; this is to market. (Bly, 2015)

Cosmetic booth is planning to undertake a market research on the PESTEL analysis to come up with a clear understanding that business environment in relations to state regulation, political status, technology and economic circumstances. PESTEL analysis will ensure that there is effective creation of the marketing plan. Pestel shapes the macro-environmental factors such as political, economic, socio-economic and technological variables used in the external environment scanning. It is generally used as a tool by business to scan the environment in which they operate or are planning to venture in. Cosmetic booth will use this as tool to project their sales, analyse their compliance capability to the rules and regulations and how to use the gaps within the economy to exploit greater rewards in terms of sales. It provides a close glimpse at the whole environment from various different angles. For this study to be successful, cosmetic booth have the following question in mind: What are the political situations that surrounds the business and how can they influence aesthetic booth? What are the prevailing economic conditions? What is the take of culture concerning cosmetics? What is the current technology and which new ones are likely to come up? How does the current legislations affect cosmetic booth? And lastly, what are the environmental factors that affect the business? All these are very crucial for every industry. This framework represents the backbone of strategic management. It defines what a business does or should do and at the same time accounts for its goals and objective and their strategies thereof. Prestel is much, a comprehensive version of the known SWOT analysis.

Political factors determines how far the government may have effects on the economy or a particular industry. For instance, if the government decides to increase taxes on the cosmetic products, all the beauty sector is going to be affected by high cost of production which is consequently trickled down to the customers. Again, the fiscal policies in a given financial year can significantly influence the operation of the cosmetic booth. Secondly, the economic environment is controlled by the rate of production and the inflation rates. These factors directly affect business operations, for instance, a rise in the inflation rate, changes pricing tactics of every business. On the other hand, the per capita income of the citizens also affects the demand as it determines the amount of disposable income. Import of cheap goods can also influence the business operations.

The third aspect of the pestel analysis concerns people and culture. Cosmetic booth should, therefore, consider evaluating the social environment by keeping a close examination of the culture of the residents. Their buying habit of the cosmetic products will either have a positive impact or negative one (Earle et aj). The social aspect also covers ethical issues within the society, thus giving the business a close understanding of the same to be confident that the operation is ethical. It also includes the religious background of the business environment.

Technology has become inevitable to all kinds of business, cosmetic industry plans to employ one of the newest technology in its marketing strategy to ensure maximum coverage. Technology can push an organisation out of business or can give a competitive edge depending on the technology used. Environmental factors encompasses both the internal and external factors that affect the business. For instance, global climatic factors coupled with the geographical location can affect the business. Lastly, legal dimension of the pestel is both internal and external. Some laws only apply in given countries but not others on the other hands there are those internal procedures and policies that are kept within the organisation. Cosmetic booth estimates that this study will cost $ 400.

Part 2

All businesses need to set out a clear pathway to guide its operations in a plan of activities. The plan outlines the set objectives and how the company plans to achieve them. A vital part of the business plan is the marketing plan, which outlines the how the game marketing goal will be attained and assigns measuring standards on how to measure standards.

Executive summary

This five-year marketing plan has been created by Cosmetic Booth by its founder to ensure growth via additional income and also inform employees of its current direction and even status. Cosmetic Booth is yet to be launched but is interested in selling its services and products to young and middle-age people, owing to the estimated demand of its services in the beauty industry. Cosmetic Booth is planning to add into its line products for the old age group shortly. Cosmetic Booth also plans to extend its distribution channels in the next five years after establishment.

Business Description

Cosmetic Booth is a beauty and cosmetic shop that is aimed at providing quality services to its customers. Prior to the owner to conceive this Idea, he had worked for a retail beauty shop for many years while taking his undergraduate degree in marketing. After many years of his work, he decided to put up a cosmetic stall with a difference owing to his experience in the same business. The cosmetic booth reflects, his enthusiasm and love for elegance. The booth is set to offer auxiliary services such as training, and application of given cosmetics to the customers. The Cosmetic Booth will be relevant to everyone as it shall provide a variety of services and products, including those that suit men.

The auxiliary services shall include, fashion advice, nail art, massage, manicure and pedicure, steam bath, and much more. The booth will come as an outstanding pillar in the cosmetic world.

Cosmetic booth is also interested in social responsibility; it shall contribute to the local conservation programs, offer sponsorship to the less fortunate and later develop and fund its environmental program. This will be a skeleton of the means by which Cosmetic booth will unveil new products. Our main commitment is to serve the community for the benefit of all.

Vision statement

To be a leading cosmetic products distributor in America.

Mission statement

To provide quality and affordable products to customers at their comfort.

Goals and objectives

· Our primary aim is to reach every American with our products

· Advertise and create awareness of the existence of the business

· Achieve is online shopping for our customers.

Core competencies

The cosmetic booth wants to put into practice its core competencies to ensure the achievement of the competitive advantage that is sustainable. The following are core skills that the business seeks to exploit in its quest for more market share: offering high-quality brand whose image the customers are well versed, creating a good channel for communication that will allow both horizontal and vertical information exchange. The cosmetic booth will develop a good reputation among retailers, as reliable manufacturers and suppliers.

Situation analysis

Case analysis involves the examination of both the macro and micro environmental factors to ensure that the marketing strategy succeeds, SWOT analysis is therefore, the right tool to use. SWOT analysis brings about a clear understanding of the business capabilities. Let us see the matrix then we discuss each component.

Strengths are those inherent advantages that a company has that gives it a competitive edge over others. However, a business cannot be all round healthy. Therefore the weaknesses may hinder it from getting to where planned. Cosmetic booth is being a new business has strengths in the quality deliverables employment of current technologies, and most qualified personnel. Weaknesses may include the capital base.

On the other hand, threats are those risks that come with starting a business where there had been on the in the same line as you. Established companies offer stiff competition to new ventures. Another threat may be the entrance of new participants to the market. On the other hand, from time to time a company may identify new technologies and also the dynamics of the same.

Importance of market research

Marketing research is the process whereby companies scan the market to come up with a report showing the customers’ needs and the potential customer base. It is also paramount in analysing the competitors’ details and strategy. A market research offers a close examination of the social, political, legal, economic and environmental situation. It is the basis for the introduction of new products into the market as it helps the entrepreneurs to identify new opportunities within the market (Hooley and Sanders, 2004).

Marketing research also covers factors such as demography i.e. the population structure, by age, sex, and density. Apart from demography it also analyses the income per capita of everyone in the market structure thus projecting the organisational income. The finding of this research can then be used to make crucial decisions such as an increase in the volume of sales, the launching of a new product, rebranding and increased advertisements.

4 Ps in the marketing mix

The marketing mix is the provision of the right product or its combination in the place where it is needed, at the right time and a reasonable price. However, it is one thing knowing what the marketing mix is, and it is another thing having the right mix. As this involves some aspects of the business plan. The mix is usually dominated 4 Ps, which are, product, place, promotion and price.

The product is the good or service produced with an aim of satisfying wants of a given segment of the market. The product can either be tangible or intangible. It is crucial to have the right products for the people who are in need of the same. It must be understood that a product has a life cycle: initiation, growth, maturity and lastly the declining phase. Diversification of the products is critical marketers to ensure that they capture or counter the effects of the declining products. Price is the value of the product in monetary form. It is what the customer pays to enjoy the product. The marketing mix can never be complete without the price. Based on the marketing research, Cosmetic Booth is going to put down appropriate strategies for pricing to ensure that customers get value for their money.

Pricing may have the following dimensions: market penetration pricing, market skimming and neutral pricing. The third element of the marketing mix is the place, the products must be in a reasonable place that is accessible to both clients and the employees to boost their morale and hence output. The distribution strategy may take the following dimensions: intensive distribution, exclusive, selective and franchising. Lastly, promotion is geared towards creating and increasing the awareness of the business products. There are various elements of development: sales organisation, public relations advertising and sales promotion. (William, 1996)

Advertisements cover communication methods that are aired either on radio or television stations at a premium. Public relations are those communications that are not paid such as press releases. My business will use the 4 Ps to ensure that the customers are served to the best of their interest.

References.

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Hooley, G. J., Saunders, J. A., & Piercy, N. (2004). Marketing strategy and competitive positioning. Harlow, England: Prentice Hall Financial Times.

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Viardot, E. (2004). Successful marketing strategy for high-tech firms. Boston: Artech House.

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Luck, D. J., & Ferrell, O. C. (1979). Marketing strategy and plans: Systematic marketing management. Englewood Cliffs, N.J: Prentice-Hall.

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Bly, R. W. (2015). The marketing plan Handbook: Develop big-picture marketing plans for pennies on the dollar.

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Grewal, D., & Levy, M. (2015). Marketing.

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Lamb, C. W. (2015). Marketing.

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Haydon, J. (2015). Facebook marketing for dummies.

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Stout, C. E., & Grand, L. C. (2005). Getting started in private practice: The complete guide to building your mental health practice. New York: Wiley.

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Earle, R., Barnes, D., & Beigel, J. K. (1999). Independent practice for the mental health professional: Growing a private practice for the 21st century. Philadelphia, PA: Brunner/Mazel.

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Williams, D. J. (1996). Preparing for project management: A guide for the new architectural or engineering project manager in private practice. New York: American Society of Civil Engineers.

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