Thursday, March 25, 2010
Business Mission Statment
Business Mission Statement
The mission of Resonance is to create a fragrance a man would go buy for himself as well as women buying it for men. Our objective is to create a fragrance that appeals to a target market segment. This will be achieved through market research. In the first year of production Resonance will claim 4% of the men's fragrance market share. Each year following achieving a 10% increase in sales.
Implementation, Evaluation and Control
Implementation of Marketing Goals:
Resonance must work as a new company to infiltrate the current market and make a name for itself. Market research must be continually done to define the habits of our target market. As our current target market grows older we must adjust our marketing to include their changing interest as well as include new generations coming in to our target segment. Creating value for our customer continually, giving them reason to reuse our products and hopefully become a habit for most of our customers. Through good customer service with our retailers, we can promote good service to our customers.
Upon start up, managers will closely monitor every stage in the process from production to delivery. Value starts with delivering our promises to our retailers. Promotional items will be sent to every department store as well as free product for those working the fragrance and make-up counters. We want first hand experiences selling the quality of our product. We will monitor sales through store reports to further target our desired market and maximise sales potential. "The best new companies view new-customer attraction as the lauching point for developing and enhancing a long-term relationship."(Lamb/Hair/McDaniel, 7)
Implementation Timetable:
Resonance will be ready for distribution by July 2010. A wholesale website for online ordering will be available by October 2010. By summer 2011 Resonance will hold 4% of the market share for men's fragrances. Each year following Resonance will achieve a 10% gain in sales.
Marketing Mix
Product:
Resonance is a Mens fragrance with hints of leather, vanilla, green tea, amber and jasmine. The fragrance come in a red and clear glass bottle with a spray application system. It will sold alone as a 1.7 oz bottle or as a set which includes a 4 oz aftershave lotion.
Place:
Resonance will be sold in major department store nationwide, such as Macy's, Nordstrom's, Dilliard's, Robinson's May and others.“A department store carries a wide variety of shopping and specialty goods, including apparel, cosmetics, housewares, electronics, and sometimes furniture.” (Lamb/Hair/McDaniel, 195) Certain Boutique stores such as Metro Park will also carry our fragrance. Resonance will be distributed mainly by truck to our oulets, by air to our distant carriers. Local delivery to our retailers will be handled by companies such as UPS and FedEx.
Promotion:
Resonance is a product that is simple and clean but speaks loudly. Our promotional strategy will reflect this idea. Our packaging, displays and advertising will have this general feel. To introduce the product our department store will have sampling available at our displays, which will also have music playing. “Sampling allows the customer to try a product risk free. Sampling can increase retail sales by as much as 40%...” (Lamb/Hair/McDaniel, 249) Advertisements will be placed in national publications such as MAXIM, Cosmo, InStyle, Rolling Stone and regional publications such as 944 and Racket. "magazines are often targeted to specialized audiences and thus reach more potential customers."(Lamb/Hair/McDaniel, 234) Bus stop and kiosk light boxes will also be utilized around shopping hubs, such as malls and retail centers like Town Square in Las Vegas.
Price:
The price for Resonance will be set at $56 for the fragrance alone, 1.7oz bottle, $70 for the 1.7oz fragrance and 4oz aftershave lotion.
Marketing Strategy
The target market for Resonance is middle class men and women ages 21-35. "The majority of Americans today define themselves as middle class, regardless of their actual income or educational attainment"(Lamb/Hair/McDaniel, 71) Part of our customer's self concept is being music lovers and our advertising will incorporate music in some way. "Through self-concept, people define their identity, which in turn provides for consistent and coherent behavior"(Lamb/Hair/McDaniel, 76) Our age demographic spans both generation X and Y. Our advertising will target each one individually and together. Urban city nightlife will be a consistent theme in our marketing. Targeting the lifestyle of our market segment.
SWOT Analysis
Strengths:
- Resonance's blend of ingredients create a unique fragrance unlike any other brand.
- Resonance's packaging and store display will make it stand out against the competition.
- The simple color scheme will reduce the cost of print production.
- The fragrance can be sold alone or paired with the aftershave lotion.
Weaknesses:
- Resonance is a new brand with no prior customer base, the company must create customer value from scratch.
- Resonance could easily be inserted in the nightlife scene of Las Vegas, using club promotions and events.
- More products and fragrances could be developed after obtaining a customer base.
- More sales translates in more advertising, possibly commercials
- Competitors could potentially try to replicate our scent and cut into our market share.
- Overall retail sales have been low compared to past years due to the nation's economy recession.
Objectives
As a new product our objectives here at Resonance are:
- Have production and distribution fully up and running by July 2010. Spending about 15% of the budget on advertising, i.e. magazine ads, website, store promotion material.
- By November 2010, Resonance will be sold in every major department stores (Macy's, Nordstrom's, etc.) as well as some select boutique stores such as Metro Park.
- By summer of 2011 Resonance is to achieve 6% of the market share in Men's fragrances.
- Obtain at least 90% in customer satisfaction to build the brand and continue delivering value to the customer.
"Without objectives, there is no basis for measuring the success of marketing plan activities" (Lamb/Hair/McDaniel, 18)
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