According to Stone (2001) the marketing mix comprises four components commonly referred to the 4ps. They include the price, product, promotion and distribution (place). The marketing mix of the Fabulous Cosmetics was formulated using the SMART principles.
Marketing objectives and goals
The following are the specific marketing objectives and goals based mainly on the marketing mix and they include.
- Introduce new Fabulous Cosmetics products in the new market and become the largest market shareholder by 2012
- Meet the consumer needs and satisfactions by delivering the products in time to all customers, outlets, subsidiaries, among other distribution places.
- Achieve the organisational goals and objectives as well as making profits in the financial year through promotions.
- Use the internet and social networking sites as well as the mobile phones to market and promote the company’s products.
- Create a positive company image and reputation so as to place itself above the par of other competitors in the cosmetics market.
- Become the leading supplier and distributor of the new innovated cosmetics in USA and UK in a period of six months.
- Have a headquarter office and subsidiary within the next one year for easy transactions
- To increase the market share to more that 50% in 2012 through increase in promotional expenditure by more than 15%.
- To obtain the customers ratings on satisfaction of not less than 95% on the 2012 cosmetics annual customer satisfaction survey.
- To retain not less than 85% of customers in this current year in the 2012/2013 financial years as part of repeat purchasers.
- To attain a 12% investment returns at the end of first financial year in 2012 with a payback based on new product investments in less than four years.
- Spend at least 15% of the sales revenues in the 2011/2012 and the 2012/2013 financial years on research and developments with the aim of introducing new 5 brands in 2012.
- Have a competitive market price that would beat the competitor’s price in the first quarter by the end of 2011.
By integration of these marketing objectives based on the marketing mix would make it possible to achieve the objectives and goals of the fabulous cosmetics.
The marketing strategies for Fabulous Cosmetics are market oriented based on each marketing mix. The following are the specified and applicable specific market oriented strategies.
AlKumar (2001, p. 216) notes that pricing is essential and should meet the consumers expectation in relation to the market demand and the quantity supplied. He adds that it should meet the marketing strategies of the organization. Use market penetration pricing strategy to beat the competitive price in the market through a low price offer in the first quarter. The company would adopt a discount strategy as part of pricing strategy where if a customer buys more than 5 products will have an extra product.
The essence of having marketing strategy based on the product is to enhance sales and meet the competitor’s demands (Barker & Angelopulo, 2006). Applicable marketing strategies based on the fabulous product include; branding the cosmetics products in a more appealing way and repackaging them is a mode not applicable by other competitors. The use biodegradable ingredients which are environmentally friendly with the aim of conserving the environment is also recommendable. Going green will attract more customers than the competitors.
Strategic placement of the store is necessary for customer attraction and convenience (Lamb, Hair, & McDaniel 2006). Several outlets will be set around busy bus terminals and tourist attraction places. Leading stores, drug stores, supermarkets, personal care stores, department stores, specialty stores will be identified to sell the cosmetics on behalf of Fabulous Cosmetics Company. Orders will be available online, and deliveries will be made on weekends between 11am and 3pm to different beauty parlors and saloons. The company with also focus on acquisition through mergers after the second financial year so as to increase the market base and share to the already untapped markets
To get the attention of the customers the company will use online advertisement as one way of promoting the sales (Mullin, 2010). Social networks like face book, MySpace, twitter among many other will be used to advertise. The company will also launch a blog where customer views and comments will be accessed and any changes rectified. Bill boards will also be used to promote the company and endorse movie stars in According to Mullin (2010, p. 37) promotion may include some aspects like value promotions and price promotions
D. Controls Analysis and Action Plan
Monitoring and evaluation are essential in determining the direction of the market, in regard to the product being sold (Lamb, Hair, & McDaniel, 2006). The company will monitor sales on daily and weekly basis and check whether there is any correlation between the products bought and the demand. They will also use correlation analysis to determine the price and number of customers in relation to the overall market demand. After first six weeks, the company will establish whether the market share is worth pumping more money. The analysis will be carried by the marketing strategic management team with outsourced human resource who are experts in the market.
Hutt and Speh, (2010) notes that the marketing strategist in the company must plan, evaluate, monitor and implement the marketing plan. The company will have a scoreboard to monitor the progress of the company where following will be measured; the business process, the growth and earnings of the company and the perspective of the customer towards the company. The company expects to have an overall turnover of over 10% in the first quarter. But depending on the outcome which for this cases the company expects a profit, evaluation will be based on the turn over.
Fabulous cosmetics completive advantage is based on the following strategies. Cost leadership strategy where it will lower its prices than those of its competitors at the same time giving quality products (Kotler & Armstrong, 2001). It will also use the differential strategy because of its new product that is unique in making through the latest technology. Lastly it will apply the focus strategy, mainly focusing on the targeted population that is not yet penetrated by the competitors. The companies will apply these strategies to tap the opportunities and circumstances that lay in future on their advantage to compete well in the market.
AlKumar, N. et al. (2001).Marketing Management. India, Anmol Publications PVT Ltd.
Barker, R., & Angelopulo, G. (2006). Integrated organisational communication. Cape Town: Juta Academic.
Hutt, M. D., & Speh, T. W. (2010). Business marketing management: B2B. Mason, OH, South-Western Cengage Learning.
Kotler, P., & Armstrong, G. (2001). Principles of Marketing (Custom Edition ed.). Upper Saddle River, N.J.: Prentice Hall.
Lamb, C. W., Hair, J. F., & McDaniel, C. D. (2006). Essentials of marketing. Mason (Ohio), South-Western.
Mullin, R. (2010). Sales promotion: how to create, implement & integrate campaigns that really work. Philadelphia: Kogan Page Limited.
Stone, P. (2001). Make marketing work for you: Boost your profits with proven marketing techniques. Oxford: How to Books.