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Semelhante a LOXHairCleanerProposal
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LOXHairCleanerProposal
- 1. Ayumi Perez Cody Colvin Josiah Thomas Max Schneberger Hartlee Lucas LOX Hair Cleanser Proposal Marketing with Professor Amy MacMillan (1) BHAG We want to dominate the emerging dry-shampoo market with a compact, stylish spritzer- operated no-rinse hair product which allows customers to keep their hair clean and fresh at any and every given moment. (2) BRAND NAME LOX Hair Cleanser Tagline:“Never miss a moment.” USP: We give you clean, refreshed hair in those moments when you need it most-- no shower necessary. (3) TARGET AUDIENCE Consumer profile: men and women aged 16-34, who are willing to try new products, consider themselves “hip,” “adventurous” and “free.” These people might actively participate (or express interest in) activities such as music festivals, road trips, backpacking trips, and other similar activities. These individuals’ travel separates them from daily showers; they appreciate and seek out stylish, individualistic products; we wish to become a part of their personal style— how they present themselves, including the products they use. (4) KEY CONSUMER INSIGHT We noticed that, while dry shampoo is quickly growing market (P&G in references), no offerings adeptly combined convenience (inherent in the product) and style. The closest product we found that marketed toward a young, hip crowd is Lush No Drought; however, it is weakly reviewed on Amazon, mostly due to its messy powder form. We then found, based on combing through Amazon reviews, that aerosol cans ran out of product quite quickly. Thus, we decided to use a spritzer top to minimize wasted product, and elongate the lifespan of each unit.
- 2. We perceive the dry-shampoo market as wide-open, waiting for a dominant company; with our affordable price, superior style and convenient packaging, we believe we can be just that. As more and more products hit the market, the product will gain more credibility. (5) COMPETITION Primary Competitors *Lush “No Drought” $14.95: *TRESemme “Fresh Start Dry Shampoo” $4.99 *Pantene “Pro-V Original Fresh Dry Shampoo” $7.99 *Dove “Refresh and Care Invigorating Dry Shampoo” $3.99 *Umberto Beverly Hills “Dry Clean Dry Shampoo” $9.99 *Batiste “Dry Shampoo” $6.00 *R+Co “Death Valley Dry Shampoo” $29.00 —Our product is the only one which uses a spritzer, rather than aerosol or powder. Lush’s No Drought, while styled similarly to our product, is an unwieldy mess; additionally, aerosol can be invasive, and provide a product which can be softly applied, and doesn’t leave a mess. —Furthermore, consumer reviews state that aerosol dry shampoos are extremely short-lasting. Our spritzer expels less product, thus wasting less, and thus lasting longer. Our product is built on convenience; being able to get the amount out of the bottle that you want, at any given moment, strengthens our case for convenience. —We bring style that isn’t salon-centric. Similarly-priced products like Umberto Dry Shampoo present a steel, monotone salon-style packaging; we figure that if people want salon-grade items, they’re going to use regular shampoo. —Our price is high enough and our packaging is sophisticated enough to suggest a higher level of effectiveness than a cheap, $4.00 bottle of Dove. —Ultimately, we feel that no one can beat the stylishness of our package design. We won’t get ultra-frugal customers, and we won’t get salons. We will, however, attract the people who want style without having to breaking the bank. —(perceptual map attached) (6) MARKETING PLAN PRODUCT (concept art for 5 oz. bottle in attachment) INGREDIENTS: Isopropyl alcohol, jojoba oil, tea tree oil, water — alcohol cleanses hair by removing excess oil. Jojoba oil penetrates and moisturizes to counteract the drying effects of the isopropyl alcohol. Tea tree oil calms skin, and fights fungus (see references). Our formula cleanses, moisturizes, and removes excess oils, while giving users clean, fresh- feeling hair.
- 3. PRICE $9.99 per 5 oz. bottle —We’re not premium, we’re not discount. We’re in the middle. We feel that an extremely low price suggests to consumers a lack of effectiveness; conversely, an extremely high price seems unfitting for a product serving as a stopgap between showers. —Price will not change seasonally. Price will lower by a small amount to fit Amazon’s new subscription service, which offers monthly deliveries at slightly lower prices, however. PROMOTION —We’re investing several hundred thousand dollars into Amazon ads. Their system works like an auction; bid the highest, get the most website market share in your category. Since Amazon offers some of the most sophisticated ad software around, and provides perhaps the most trusted customer-review forum on the internet, we will rely largely on their services to promote our product. —We will seek a lucrative partnership with Coachella, the ultra-popular Californian music festival. We will invest $200,000 into sponsoring next year’s event, a union which will hopefully provide multiple booths at the event, wide distribution of samples, and highly-prevalent product imagery in and around the venue. There is both significant precedent for this type of promotion and great reward; over 70% of festival-goers become loyal to festival sponsors (see references). PLACE —Our price is not an every-day-low-price, but it doesn’t belong in a high-end salon. We seek to partner with stores possessing an image of mid-to-high quality items, often with exceptional style. We will stock primarily with Target, as its image of mid-level pricing without sacrifice of style largely fits our own image. —We’ll also stock with Urban Outfitters, known for their stylish yet useful items. We will place our product at eye level on the shelves next to the check out line. —As mentioned in our promotion section, we will try to dominate the dry-shampoo market on Amazon. We believe this medium to be our most effective channel. (7) BREAKEVEN ANALYSIS —Amazon active users: 300 million+ (statista.com) Outreach to online US population: 69% (statista.com) Percentage of US population aged 18-34: 23% (census), or 73 million people Estimated number that will see Amazon ad: 2 million worldwide
- 4. % that will buy: 4%, or 80,000 unique customers —Estimated readership of our targeted magazines over 6 months (Vice, NYT Fashion, NYT Mag, GQ, Vogue): 10 million % that will see at least one ad: 80%, or 8 million % that will buy: 6%, or 480,000 unique customers Fixed Costs ($3,608,000) Sponsorship of Coachella: $200,000 Amazon: internet, per-click Amazon ads = $400,000 Magazine Ad Campaign ($1,518,000) —New York Times Fashion Magazine 3 issues, 1 page each, 6 x 83k = 249,000 —New York Times Magazine 3 issues, 1 page each, 3 x 83k= 249,000 —Vice Magazine 3 issues, front cover, 3 x 40k = 120,000 —Vogue 3 x 150,000 (3 issues, full page)= 450,000 —GQ 3 x 150,000 (3 issues, full page)= 450,000 Logistics, factory, employees ($1,490,000) —10 headquarter salaries (marketing, logistics, administration) of $40,000 per year: $400,000 —Rent, utilities, insurance for distribution center, per year: $40,000 —Salaries for 30 field sales reps @ $35,000 per = $1,050,000 Unit Variable Costs ($1,150,000) —Materials cost per unit: $2.00 (including ingredients and container) —Manufacturing/delivery: $0.30 per unit —Unit variable cost: $2.30 Price $9.99 per 5 oz bottle Total Cost (1,150,000 + 3,608,000) = $4,758,000 Breakeven Quantity 3,608,000 / (9.99-2.30) = 469,180 units Breakeven Revenue (469,180 units) = $4,758,000 Based on our advertising estimates, reaching our breakeven quantity shouldn’t be a problem for the upcoming year. (8) Advertising Campaign
- 5. (artwork attached) *We have a full-fledged magazine ad campaign with multiple designs, which are attached. The design we will ultimately blow up and present is still being debated; however, we are highly confident in all of our original artwork. We will purchase ads in Vogue, GQ, New York Times Magazine, New York Times Fashion Magazine, and Vice. *We want to communicate style, convenience, and performance to men and women aged 18- 34. We still have to add text to the ads; the text on the magazine ads will likely include our tagline, and the fact that we’re no-rinse. Hopefully, the quality of the artwork— and the ads’ presence in top magazines— will help assure prospective buyers of credibility and effectiveness. *We want to communicate to people that they can have convenience without sacrificing style. In addition to our Amazon promotion efforts, these magazine ads in trusted publications will help us do just that. (9) Social Media Plan *Please see Attachments for full plan. (10) Timeline Fall/Winter 2016 Negotiate with retailers, bid on 2017 Coachella sponsorship, establish distribution channels Jan. 10, 2017 Launch product on Amazon Feb. 1, 2017 Stock in Target, Sears and other retailers, on West Coast Feb 25, 2017 Launch Coachella sweepstakes (detailed in Attachment D) Mar 15, 2017 Announce sweepstakes winners Launch series of 12 high profile magazine ads, running continuously through September April 1, 2017 Non West-Coast launch (Midwest, South, East Coast) April 15-24, 2017 Coachella festival, focus on sponsorship September 2017 End of heavy magazine advertising cycle Fall/Winter 2017 Increase post-purchase outreach through Amazon, website mailing list Strengthen Amazon ads, decrease retailer stock size Bid for 2018 Coachella sponsorship Spring 2018 Reestablish heavy magazine advertising cycle, reevaluation of methods ATTACHMENT: References
- 8. ATTACHMENT: Social Media Plan *In addition to intensive Facebook and Twitter presence development, we will offer seasonal promotions regarding our Coachella sponsorship. We’ll target men and women, aged 18-34, who have indicated interest in music festivals, or indie music concerts. *We will give away three sets of five Coachella VIP passes (15 total). Entrants must Tweet a picture of themselves doing something “adventurous, liberating, and exciting,” under the hashtag #nevermissamoment. The top entries will be judged by online votes; this encourages entrants to share their entries to their friends in hopes of winning the passes. *If LOX has, at that time, a small followership, the entrants will be under the impression that it’ll be easier to win the tickets. If we have a large followership, then more people will be likely to enter. Thus, regardless of our other social media success, it’s a winning program. ATTACHMENT: Bottle and Magazine Concept Art (ad still being finalized; below is the concept art we will use for magazine ads, and our bottle; text will be added by final cut)