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Explain your communication objectives and the communication channels your company will use to influence your target audience
Marketing Plan for Deodorant Product assignment 1.doc

MARKETING PLAN FOR ARIMOUNT DEODORANTS
SITUATIONAL ANALYSIS
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)
Environmental Factors
Economic Factors
-

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 companys 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
2012).

-

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).

Politico-legal Factors
-

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).
Socio-cultural Factors
-

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 Hofstedes 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).

Technological Factors
-

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).

3C Analysis
Company
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
Competitors
-

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 mens 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 womens segment with research showing that
women dont 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
-

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).

SWOT Analysis
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
products.

-

Womens segment growing at a rapid
pace.

-

Strong financial position of the
company.

-

Teenagers is a growing segment that
the company could tap.

-

Dedicated R& D department of the
company.

-

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).

MARKETING STRATEGY
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
Strategy.
SEGMENTATION AND TARGETING
Market Segments that Arimount will Target:
-

Mens Segment

-

Womens Segment

-

Teenagers

-

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.

POSITIONING
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
be:
If you want to reach greater heights with acceptability among colleagues and friends, use
Arimount

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.

PRICING
-

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
the product.

-

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.

PROMOTION
-

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
expenditure.

DISTRIBUTION

-

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
retail stores.

-

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
undertaken.

-

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
year.

FINANCIALS
-

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.

CONTROLS
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
S.No.

Measure

Time or Target

Initiative/Primary
Responsibility

1

Increase in Sales Revenue

Achieving Sales
revenue of $5

Developing strong
sales force

million in one year
2

Increasing distribution Channels

To develop 30
company owned
stores and reaching
50000 retail outlets
in one year

Appointing new
distributors,
developing
infrastructure

3

Return on Investment

To gain a return on
Focus on
investment of 20% in improvement in
one year
processes, reduction
in cost and improving
revenues

4

Creating Awareness

To increase the
awareness levels
among target
audience from 0% to
70% in one year

Aggressively focusing
on advertising and
promotions

5

Containing selling and
Administrative Expenses

To contain the
selling and
administrative
expenses to 5% in
one year

To monitor the
developments in the
market and sales
pattern and
accordingly decide on
compensations and
expenditure.

References
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
2012].

5. Kiplinger,

2012,
Economic
Outlook,
[Online],
Retrieved
http://www.kiplinger.com/businessresource/economic_outlook/ [27 April 2012].

from:

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
2012].
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
2012].
10. Lee

M.D.,
2012,
Cultural
Diversity,
[Online],
Retrieved
http://www.ethnoconnect.com/pdf/article01.pdf [Accessed on 25 May 2012]

from:

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],

Retrieved
from:
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

from:
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:

http://online.wsj.com/article/SB10001424052748703696704576223112705412404.html
[30 March 2011]
17. IBIS World, 2012, Cosmetics and Beauty Products Manufacturing in the U.S: Market

Research
Report,
[Online],
Retrieved
from:
http://www.ibisworld.com/industry/default.aspx?indid=499 [Accessed on 25 May 2012].

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Explain your communication objectives and the communication channels your company will use to influence your target audience

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