Marketing Plan for Deodorant Product assignment 1.doc Download Attachment
MARKETING PLAN FOR ARIMOUNT DEODORANTS
Herein, we will analyze the environmental factors which can influence the company, conduct a
3C (Company, Competitors and Customers)...MARKETING PLAN FOR ARIMOUNT DEODORANTS
Herein, we will analyze the environmental factors which can influence the company, conduct a
3C (Company, Competitors and Customers) Analysis and then identify the strengths,
weaknesses, opportunities and threats (SWOT)
The GDP of U.S increased by 2.2% in the first quarter of 2012 as compared to 1.7% in
the year 2011 but was below expectations of 2.5% growth due to government cutting the
budgets and slowing business investment (Wiseman & Rugaber, 2012: 27 April).
The real consumer spending in U.S increased by 2.9% which is fast than previous quarter
and fastest in the year (Wiseman & Rugaber, 2012: 27 April). This is also faster than the
2.2% real consumer spending registered in 2011 (The Conference Board, 2012: May 9).
In April 2012, the inflation in U.S was recorded at 2.3% as compared to 3% last year
which is a positive signal as it is also expected the inflation to remain at around 2% levels
(Trading Economics, 2012: 15 May; Kiplinger, 2012: 27 April 2012).
European financial crisis is driving lowering of interest rates in U.S but this will be short
lived and a company’s business will get a favorable impact with borrowing possible at
lower rates of interest although it is going to hurt savings also (Kiplinger, 2012: 27 April
The Consumer Confidence Indexes of Bloomberg and The Conference Board Index
depicted pessimism in consumer confidence due to concerns over increase in
employment and the consumers remained cautiously optimistic about the U.S economy
(Homan, 2012: 17 May; Chandra, 2012: 24 April).
U.S government is quite supportive of the business with Bankruptcy Protection even in
beauty businesses where companies like Pure Beauty filing for Bankruptcy Protection in
late 2011 (Hoovers, 2012: n.d).
There are regulations for uses of chemicals in cosmetics and beauty products by the Food
and Drug Administration (FDA) but the regulation is a term which is loosely used in the
industry and every chemical is being actually used in cosmetics through strong industry
lobbying with the government and political parties (States, 2012: 21 March).
There is a diversity of culture across the United States of America with a mix of Latinos,
Hispanics, Germans, Japanese, Europeans, Chinese, Indians etc. (Lee, 2012: n.d) which
may lead the company to identify different segments of the market and develop newer
products for them.
United States of America is high on individualism and masculinity dimensions as per
Geert Hofstede’s cultural dimensions and therefore the deodorants and beauty care
products need to be taking care of these dimensions while developing their products
(Hofstede, 2012: n.d).
Various consumer advocacy groups have raised concern against the deodorants and
antiperspirant believing them to be associated with health risks and being harmful to
body in the form of causing diseases such as breast cancer (Wise Geek, 2012: n.d).
Technology has played an important role in providing more interaction of brands with the
buyers and potential buyers through online social media such as facebook and twitter
(Mintel, 2012: n.d).
There is a rapid change in technologies with new types of antiperspirants and deodorants
being launched in the market. For example, Degree men, a deodorant by Unilever has
launched a new deodorant line with Motion-sense technology which responds to the
movement of the wearer to fend-off sweat and odor by releasing bursts of fragrances
(Olson, 2012: 3 May).
Arimount is a well known beauty and grooming company which is having a presence in hygiene
since last 20 years and has well established brand name in the market with a variety of products
in its portfolio. The company envisions to build a healthier society with good standard of living
The company faces a tough competition in the U.S market with strong competitors like
Unilever, Procter & Gamble, Henkel, Loreal etc.
According to market research firm Symphoni IRI, Unilever dominates the men’s body
spray market with 74% market share but the market is quite fragmented with only 17%
men using body spray (Newman, 2012: 8 January).
Axe is now going to focus aggressively on women’s segment with research showing that
women don’t like odor near their armpits (Newman, 2012: 8 January).
Market for deodorants is quite fragmented with a wide variety of choices available for
consumers with 300 deodorant products spanning 25 brands and sub-brands according to
data from Spire LLC, a research firm that tracks grocery habits of 30 million U.S
households (Byron, 2011: 30 March).
Customers are very demanding and this is leading to development of new products and
identification of new market segments – Men, Women, Adults, Teenagers etc. According
to Amy Zeigler, use of deodorants/anti-perspirants among teens is 92% placing them at
par with adults (Mintel, 2012: 2 May).
Based on the above facts and assumption, the SWOT Analysis could be done as follows:
STRENGTHS OF ARIMOUNT
OPPORTUNITIES FOR ARIMOUNT
Established Brand Name in beauty
Women’s segment growing at a rapid
Strong financial position of the
Teenagers is a growing segment that
the company could tap.
Dedicated R& D department of the
Emerging markets with BRIC nations
having a huge purchasing power
WEAKNESSES OF ARIMOUNT
Weak distribution network as compared
to Unilever and Proctor & Gamble.
Unrecognized in deodorant segment.
High attrition rate
THREATS FOR ARIMOUNT
Strong competition from established
players such as Unilever, Proctor &
Gamble, Henkel etc.
Consumer confidence may dip due to
concerns relating to employment and
consumer spending may be reduced.
Beauty Products Market in U.S
According to a market research report by IBIS World, the beauty products market in U.S is a $55
billion market in terms of revenue with an annual growth of 1.3% during 2007-12 and an
employment of 53,619 people and 1,937 businesses (IBIS World, 2012: n.d).
This section of Marketing strategy will describe the targeting and positioning strategy of
Arimount along with its Product Strategy, Pricing Strategy, Promotion Strategy and Distribution
SEGMENTATION AND TARGETING
Market Segments that Arimount will Target:
Company will also select social class as segmentation bases and will include two
deodorants with Upper class, Upper Middle class and Middle class with different prices
and different brand names.
The Airmount deodorants will be positioned as the inspirational product which provides
inspiration to others on how to be the perfect people in the world. The positioning message will
“If you want to reach greater heights with acceptability among colleagues and friends, use
PRODUCT AND BRANDING STRATEGIES
The product mix will initially comprise of 5 deodorant products targeting Men, Women,
Teenager, Upper Class and Upper Middle class with 20 different brands satisfying the
needs for excellent fragrance, 24 hours activity, inspiring people and attraction needs.
These will be run on test basis for 3 months and within next one year, 40 new brands will
be launched based on Research.
Brand Line Extension will be used for brands Targeting at Men, Women and Teenagers
but multi-branding strategy will used for Upper Class and Upper-Middle Class – Elva for
upper class and Delsa for Upper Middle Class.
Continuous focus on research will be done to properly research the consumer needs to
develop new products over next one year.
Competitive pricing will be used for general category deodorants for Men, Women and
Teenagers where the company will try to achieve rapid penetration in the market.
Initially, the products will be priced at $2 to gain market share and to induce adoption of
Market Skimming pricing will be used for Upper Middle class deodorants whereas
Perceived value pricing. Whereas Delsa brand for Upper-Middle class will be priced at
$20 - 40, Elva will be prices at $700 to $3000 for Upper class.
To create an awareness among the target market, the company will invest $5 million in
aggressive television and newspaper advertising for first six months, for the next six
months a further spend of $3 million will be incurred.
Company will utilize social media networks also for promoting the products and creating
awareness among consumers.
Initially, the consumer will receive a free soap and a shopping bag along with the
deodorant as a sales promotion scheme.
Television, Print Media Advertising, Outdoor Advertising, Radio Advertising and Event
Marketing will have a proportion of 40%, 20%, 15%, 10% and 15% respectively in total
Intensive distribution strategy will be used by the company where the company will sell
through all possible retailers and wholesalers.
Company will also invest $5 million in next one year in establishing 30 company owned
A commission of 5% will be given to the distributors initially depending on the sales
volume for the first six months and thereafter, a review of compensation will be
U.S market will be divided into 20 sales territories, each of which will have a Territory
Sales Manager under each of whom 30 Sales Executives will be appointed in the next one
Company forecasts revenue of $5 million in the next one year with an incremental sales
of 30% each year.
Net Profit margin is forecasted to be achieved at $ 0.5 million in the first year followed
by 40% increment each year.
Selling expenses will be maintained at the level of 10% of sales initially for first six
months and eventually reduced to 5% in the next one years and containing it to 1% of
sales in next two years.
For control purposes, following tools will be used
Annual budgets will be used to monitor and control expenditures.
Monthly and Daily Sales and expense Reports will be provided by the Sales Department
and Finance Department respectively.
Balanced Scorecard will be used for control in the following manner:
Balanced Scorecard for Arimount
Time or Target
Increase in Sales Revenue
revenue of $5
million in one year
Increasing distribution Channels
To develop 30
stores and reaching
50000 retail outlets
in one year
Return on Investment
To gain a return on
investment of 20% in improvement in
in cost and improving
To increase the
audience from 0% to
70% in one year
on advertising and
Containing selling and
To contain the
expenses to 5% in
To monitor the
developments in the
market and sales
accordingly decide on
1. Kotler, 2008, Marketing Management, US: Pearson Education.
2. Wiseman P. & Rugaber C.S., 2012, US GDP growth Q1 2012: Economic growth slowed
to 2.2 percent on cutbacks in Government, Business spending, [Online], Retrieved from:
http://www.conference-board.org/data/usforecast.cfm [27 April 2012].
3. The Conference Board, 2012, The U.S Economic Forecast, [Online], Retrieved from:
http://www.conference-board.org/data/usforecast.cfm [9 May 2012].
4. Trading Economics, 2012, U.S Annual Inflation down to 2.3% in April , [Online],
Retrieved from: http://www.tradingeconomics.com/united-states/inflation-cpi [15 May
http://www.kiplinger.com/businessresource/economic_outlook/ [27 April 2012].
6. Homan T.R., 2012, Consumer Comfort in U.S drops to a nearly four-month low ,
[Online], Retrieved from: http://www.bloomberg.com/news/2012-05-17/consumercomfort-in-u-s-drops-to-nearly-a-four-month-low.html [17 May 2012].
7. Chandra S., 2012, Consumer Confidence in U.S little changed as outlook cools , [Online],
Retrieved from: http://www.bloomberg.com/news/2012-05-17/consumer-comfort-in-u-sdrops-to-nearly-a-four-month-low.html [24 April 2012].
8. Hoovers, 2012, PureBeauty Inc. – Company Description , [Online], Retrieved from:
http://www.hoovers.com/company/PureBeauty_Inc_/ryscjhi-1.html [Accessed on 25 May
9. States S., 2012, States lead the fight against toxic chemicals lurking in cosmetics,
[Online], Retrieved from: http://www.saferstates.com/2012/03/cosmetics.html [21 March
http://www.ethnoconnect.com/pdf/article01.pdf [Accessed on 25 May 2012]
11. Hofstede, 2012, United States – what about the USA, [Online], Retrieved from:
http://geert-hofstede.com/united-states.html [Accessed on 25 May 2012].
12. Wise Geek, 2012, What is the difference between anti-perspirant and deodorant ,
[Online], Retrieved from: http://www.wisegeek.com/what-is-the-difference-betweenantiperspirant-and-deodorant.htm [Accessed on 25 May 2012]
13. Mintel, 2012, The beauty of social media engagement – 15 million Brits have interacted
with beauty and personal care brands online, [Online], Retrieved from:
http://www.mintel.com/press-centre/press-releases/859/the-beauty-of-social-mediaengagement-15-million-brits-have-interacted-with-beauty-and-personal-care-brandsonline [Accessed on 25 May 2012].
14. Olson E., 2012, Mixing marketing with social games and extreme sports , [Online],
http://www.nytimes.com/2012/05/04/business/media/degree-mendeodorant-turns-to-video-marketing.html [3 May 2012]
15. Newman A.A., 2012, Axe Adds Fragrance for Women to its Line-up, [Online], Retrieved
http://www.nytimes.com/2012/01/09/business/media/axe-adds-fragrance-forwomen-to-its-lineup.html [8 January 2012].
16. Byron E., 2011, Unilever Tackles the Ugly Underarm, [Online], Retrieved from:
[30 March 2011]
17. IBIS World, 2012, Cosmetics and Beauty Products Manufacturing in the U.S: Market
http://www.ibisworld.com/industry/default.aspx?indid=499 [Accessed on 25 May 2012].
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