Management Research Planning and Presentation
Situation Assessment and Analysis:
According to the surveys even in the current uncertain climate and horrific recession we find £1.2 billion sales in the cosmetics. Globally the colour cosmetic market is continuously growing. In recent years the consumers have inclined towards the organic skincare and makeup products, animal testing in cosmetic development process is now very much condemned by majority. The awareness of the content present in a product and people being more particular about the cosmetics has boosted up the demand for all natural and organic skin and makeup products. Cosmetics have an essential role in each individual’s life it includes personal hygiene products as well. This era is all about innovation fascination of multi colour pallets. So far Mac is known for its fun colour range and Lush is working well with its all organic handmade cosmetics and certain companies are selling a complete pack of DIY mineral makeup kits which is popular among ladies but only a small percentage can combine the given quantities successfully mostly face failure in terms of achieving right consistencies. I found a loop in the market where we do not find a single company that caters the demand for unique shades in all organic products custom made and gives customer a chance to participate in the making process.
Considering market trends and the percentage of consumers, I put forward the idea a custom made all natural cosmetic, custom shades and particular skin treatments with an interesting self service concept which I shall further explain in this paper. It represents a perfect prospect to enter the highly lucrative world of beauty business.
I name my business “Pixie Mix”.
“Pixie Mix”
We are all unique and people have different tastes and requirements. Someone looking for an effective skincare product catering to their specific skin type or to a custom lip stain or a unique eye shadow would be able to walk in and order their desired shade, participate in the process of making the custom product, core idea of my company is to enjoy the process of making custom cosmetics in front of the customer with them participating with a professional. The magic of bringing an idea into reality, the display of the store would resemble a cocktail bar or a candy shop where one can easily pick and mix.
The Services:
- Custom made shades of any cosmetic product.
- All skin care and cosmetics natural organic products.
- Freshly handmade cosmetics catering to individual needs.
- Hangout and share their ideas in a fun parlor.
- Friends, mother daughter, sisters all can hang out and spend some quality time together.
- Giving therapies and treatments.
Market Summary:
Market Demographics:
A huge percentage of female customers are definitely higher than male. People of all age groups and all fields put an effort in presenting themselves at their best since the company would be providing natural skin care products along cosmetics it has a potential to draw attention of a vast audience, including people who search for “green” products. The features of my products are convenient and intended for the whole family. The target audience therefore will be ranging from men, women, children and especially teenage girls and makeup students and artists.
Marketing plan for Pixie Dust can be categorised in to three factors.
Behavioural Factors:
People are no more sensitive to fashion and latest trends they follow fashion programmes, read cosmetic magazines and look up to celebrities.
Demographical Factors: Generally women make about 80% of the customers according to reports and surveys conducted. The age group of female customer rages from 13 to 50 and now according to new statistics the usage of natural cosmetics among 35 to 50 years is growing rapidly. The age group of men using herbal products and cosmetics of any type is men vary from approximately 35% within the age of 20 to 45.
Market Needs:
Typically majority of Cosmetics Companies reformulate 25% of the product each year, to gain competitive advantage in this cut throat industry, where consumer demands and expectations are higher. IT has played its role channels like You Tube have made millions of viewers cosmetic tutorials that have a strong following these programs show the interest of women in making their own cosmetics.
Market Trend:
In a case study done on an apparently healthy 30 years old lady, found 500 dangerous man-made chemicals in a single fat cell. On comparing this cell with one taken from an Egyptian mummy the researchers were shocked to find none in the mummy’s cell.
Every day we find on different websites and newspaper the jeopardy of chemicals going in to our systems. An accepted chemical cocktail intake has become a practice of modern way of life. This alarming situation has motivated a lot of people to spread awareness and educate people to minimise the usage of chemicals for a decrease in threatening health issues. Health organizations are running campaigns globally to condemn chemicals and promote organic and natural products.
Market Growth:
Figures show a significant increase in number of people switching to organic and natural products we see an amplified demand in organic products as well. Keeping the facts and figures I estimate that in near future as people become more aware they will opt for natural and organic products. I would like to grasp this immense opportunity to enter this lucrative industry of fun and magic.
The Competitors and Differentiation:
At the moment this is the most profitable industry and we do have some good competitors in the business concept put forward above. However as this company will combine all the related facilities due to resources and professional help it will be flexible as to what each customer is looking for. So far these facilities are available to only a specific group of society; my business will be catering to people from all walks of life from a school teacher to a top business person.
SWOT Analysis:
Strengths and Opportunities:
As I have mentioned earlier while summarising the market, this industry survived in fact thrived through the recession period as well. It is not hard to see that cosmetic products are vital for majority of women who make more than 50% of global population. I feel one of the distinctive strength of “Pixie Dust” would be its infinite colours any one can create a shade just right to their need or taste the options are unlimited. Noticed how women of all ages gather around the MAC counter in a shopping mall or how festive atmosphere of Lush appears with its alluring fragrances, if I introduce a store with an atmosphere of like “Santa’s toy factory” one of a kind of a cosmetic cocktail bar manner hangout. Growing craze of cosmetics and women obsession with it are the opportunities that can be easily exploited.
Proper marketing and by attracting media’s attention we can broadcast core beliefs of “Pixie Mix” of fun and staying green. By cooperating with other businesses that are contributing to a safer environment can give a strong portfolio. My business has a strong international growth potential, but even as a small store/ bar it has a potential to attract people for its unique self-made product.
Weaknesses and Threats:
Environmental factor might not be of an attraction for some people. Natural products mean without chemical or any preservatives this means that products will have a short shelf life. Educating people with the threats of non organic products and replace those with naturals will take its due course. Pixie Mix would have to make its place among Giant competitors like Bath & Body, Burt’s Bees, The Body Shop, Lush, Mac and many other national and international brands.
Keys to Success:
The core strategy of Pixie Mix is to have a fun activity, promote creativity which is safe and environment friendly. This social responsibility and moral responsibility with a unique twist makes Pixie Mix a promising business.
Marketing Strategy:
- Using only the finest of fresh organic fruits, vegetables, herbs, oils and secure synthetics in our manufacturing.
- We will deal with companies with similar beliefs regarding environmental security and who condemn testing on living beings.
- Facilitating and encouraging innovation and dare to try something unique.
- Encouraging friends to spend time together being creative and having fun.
Marketing Objectives:
Objective would be to share out the knowledge of harmful effects of chemicals and the enormous exposure we have to face in daily routine. How these chemicals can jeopardise our and our loved ones health. Educate people which chemicals to look out for to minimise the risks and definitely to attract more customers.
Marketing Objectives:
I expect the project will bring 2% product margin initially per quarter. Then reach a growth of sustainable 10 to 11% in a year. Once the growth gets constant and Pixie Mix gets an encouraging response from people I would like to open similar parlour on other famous shopping spots like Regent Street and Westfield, these further investments will be dependent on this first business if it successfully achieves its financial objectives.
Product Introduction:
I will introduce in London United Kingdom this city is known for its cultural diversity and the number of tourists with the Olympics 2012 just around a corner will help in sale. The European industry has the title of world leaders and a brilliant reputation in cosmetic manufacturing.
Positioning:
My product and service would be placed under a cosmetic and service that is organic and environmental friendly with minimum or no preservatives at all. One of the aims is to educate people and promote creativity.
Strategies:
I intend to take utilise this excellent mean of communication and introduce a free online software to choose shades right for them by mixing different shades, so they can enjoy it at home and would be anxious to try on their creation. Similarly for different skin types few basic coactions and potions can be altered according to their requirements online.
Marketing Mix:
Product: “Pixie Mix” (Cosmetic Cocktail Bar)
Price: Depending on quantity of each product prices may vary but an average jar of custom made lip gloss will cost £3 where as skin treatments can vary between £10 to £30 depending on the treatments and ingredients.
Place: Online store and retail store.
Promotion:
- Free membership for initial customers to reserve places in case the number of customers increases.
- Coupons and samples will be given to supporters of cooperating charity partners.
- Handing out free samples at different malls.
Marketing Research:
Initially monthly sales figures would show the demand and acceptation. We can ask for online feedback from the customers asking about their experiences Response of people to the physical store.
Online response to the software for custom products will show the interest of consumers towards the service and product.
Financial Projections and Analysis:
Yearly Sales and Revenue Forecast:
Pixie Mix Yearly Sales Forecast
| Sales | 2010 | 2011 | 2012 | 2013 |
| £641200 | £651200 | £664387 | £68 2609 |
Milestones
Milestones Expense Budget Plan
| Milestones | Start Date | End Date | Budget | Department |
| Marketing Plan Completion | 04/09/10 | 04/20/09 | £0 | Marketing |
| Website Update | 05/30/1 | 05/05/09 | £400 | Marketing |
| Mail Order Catalogue Completion | 04/10/10 | 04/30/09 | 15,000 | Marketing |
| Ad Campaign 1- Print Ad in Magazines | 06/05/1 | 06/30/09 | £120,000 | Marketing |
| Ad Campaign 2- Product Placement Campaign | 08/01/10 | 08/31/09 | £100,000 | Marketing |
| Ad Campaign 3- Sporting Event Campaign | 10/01/11 | 11/01/09 | £25,000 | Marketing |
Control and Evaluation of Effectiveness:
Monthly and annual sales revenue and customer satisfaction will be considered the guidelines and will be followed religiously in case Contingency Plan: Contingency Plan:
of any problem immediate response will be taken.
Implementation
Strategic plan of key marketing programs are shown in the table above they must be implemented within the budget shown in the table. The dates of commencement along with the finishing are indicated in the table as well.
In order to deal with competitors or say potential competitors it is important to have a contingency plan. I will initiate by a campaign first giving the consumers an opportunity for a question and answer session and initial marketing we will introduce a free mini treatment with a product purchase.
References:
Alan Le, M. (2005) Start and run your own business: How to Books Ltd. UK.
Linda Pinson, Jerry Jennet (1996) Steps to small Business start-up: Upstart publishing company.
Polly, B (2004) Business Plans.
W.H. Shaw, V Barry (1995) Moral Issue in Business, 6th Edition. Belmont. CA: (Wadsworth).