Situation Analysis
Soft Touch Company has been an operational company since its conception and launch in 2017. Its conception arises after the founder noted gray hair on her head as soon, as she turned 30 years old. By then, no shampoo would clean and dye gray hair. The discovery of this market gap resulted in the product’s development line, Norgay, which includes shampoos of various hair colors. Therefore, Nogray intends to give the taste of simplified life with its products being organic yet to get tested or harmed by any animals.
Soft Touch is built around the foundations of leadership, knowledge, and entrepreneur expertise of the founder. The originator plays a key role in measuring the company’s strength because of her competence in identifying and putting into practice business ideas. As a result, she has several flourishing business ventures and networks in the cosmetics industry, diversifying the role of the company to her affiliate businesses. Currently, the firm is bearing the burden of not having stores worldwide adopted as the only company’s weakness. This is deducted from the potential market that the shampoo line is to satisfy.
Industry Overview
The industry of cosmetics has been changing dramatically over time. This is contributed by the diverse consumer preference, thus making it a flourishing industry. Therefore, companies venturing into the cosmetic industry have invested much in research and conception of the market to understand what customers need to satisfy their urges (Sharma & Kalra, 2020). Since the industry is based on luxurious goods, the credibility of the goods offered should be paramount. It is to this effect the cosmetic industry has diversified into organic products that are less harmful a feature to keep cosmetic companies operational (Chiu & Chuang, 2017). Competition has defined the strengths and weaknesses of this field. Its strength lies in the ready market; however, its weakness is that consumer preference changes rapidly, making it challenging to deliver the right products at the right time in the market.
Target Market
The consumption of shampoo products is daily, making it a unisex product. However, Nogray products primarily target population groups ranging above the age of 30, with women taking the largest market share. The psychology behind the demand for this shampoo is that people find it necessary to treat their hair by washing it. The dye helps maintain gray hair, an occurrence common in an aging population (Spironelli, 2019). It is approximated that the market size for Nogray is beyond the company’s production, resulting in an identified demand for the product. Nogray products’ features include is to exterminate dirt from the hair, leaving it refreshing, moisturized, and treated with its herbal components. The products also alter one’s hair color based on your preference.
Product
Currently, Nogray products are in the growth stage where customers have recognized the products in the market and are consistent in purchasing them. This interprets a rise in demand that would increase the company’s profit margins by a crucial figure. A unique feature of Nogray products is that they are of diverse simplicity. The products not only help keep the hair clean and vibrant but also alter the color of the hair (Ramli, 2017). This has been achieved through the use of organic content ranging from treating, cleaning, and coloring elements. From Nogray products, consumers benefit from having neat hair, an aspect of physical beauty it achieves. In comparing Nogray products with those of its competitors, the product has gained more appreciation because of its sincerity and transparency in what it offers.
Pricing
The product’s pricing strategy has been objectified to maximize its market share and seek new markets putting competition from similar goods into consideration. The pricing strategy is objectified to increase the affordability of the products. Factors affecting the pricing strategy of the product include the purchasing power of the clients, resulting in reviewing the packaging of the products into affordable units (Ramli, 2017). The pricing decision is affected by the prices established by competing firms. Compared with other businesses, the firm’s pricing strategy is more flexible on consumer needs and capabilities of procuring the products.
Distribution
Using indirect channels in distributing Nogray products has been useful in the product’s sales. However, with the product in the growth stage, the company has launched direct channels of distribution. The firm has implemented this by appointing sales agents, opening retail shops, and setting up an e-commerce platform for online shopping (Chiu & Chuang, 2017). Direct distribution is compatible with the products and target market since it is in the expansion phase and direct contact with customers is crucial. Compared to its rivals, the company has invested heavily in e-commerce, giving it a competitive advantage.
Promotion
Product promotion is a crucial agent in salvaging a target market to have a competitive advantage over your competitors. The theme of the promotion of this product is to express the product as the best deal in the market. Thus, marketing strategies are vital in increasing consumer consistency that transforms them into loyal customers; these are advertising and sales promotion (Spironelli, 2019). The company is to apply an advertising campaign focusing on building the company’s overall image by creating a reputation that would build customer loyalty. Advertising is aimed at reaching diverse segments of the population considering the content and context of the product’s features. This should be done through mass and social media platforms.
The company will focus on the consumer’s curiosity by sanctioning coupons, demonstrations, contests, and tie-ins in implementing sales promotions. This will allow new consumers to have a physical experience that is appealing. The company will focus on acts of a trade by imposing incentives, organizing trade shows, and setting funds for corporate advertising. The company will conduct personal selling through sales organizations and allow room for compensation for faulty goods (Sharma & Kalra, 2020). Public relations would be appropriate for sales promotion. This would be accomplished by creating consumer events and indulgences in press programs.
Budget and Resource Requirements
The targeted budget is to facilitate the growth stage of the product. This comes in hand with the company’s need to maximize salvaging the targeted consumers to achieve the philosophy engrained in the business entity. The budget will cost 5,000,000 dollars which will cover the set logistical implications. Controls have been set to evaluate the program every quarter. These measures include a quarterly review of financial statements and consumer responses in case of inconveniences. The company will require human and financial resources to support the program, assuming that the product line is in the expansion phase.
Schedule of Activities
- 27th June 2021—Launching the products in chain stores.
- 15th July 2021—Launching the product on the company’s website.
- 27th November 2021—First announcement of the business health of the program.
Conclusion
Nogray product line is a viable product enough to scale the company in making profits. The product line has a sense of competency that would enable the company to have a competitive advantage over rival businesses. However, my involvement in this project was an instance of learning such that I was able to improve my business management skills. This included how identifying business gaps in the economic cycle.
References
Chiu, S. P., & Chuang, L. W. (2017). Analysis of the development trend of green cosmetics. In 2017 IEEE International Conference on Consumer Electronics-Taiwan (ICCE-TW) (pp. 291-292).
Ramli, N. S. (2017). Green marketing: A new prospect in the cosmetics industry. In A. J. Savile & D. Nicolo (Eds.), Sustainable entrepreneurship and investments in the green economy (pp. 200-230). IGI Global.
Sharma, V., & Kalra, R. (2020). Study of the impact of social media on the buying behavior of the consumers in the cosmetics industry. International Journal of Business Management Insight & Transformations, 4(1), pp. 17-28. Web.
Spironelli, C. (2019). Cosmetics industry: An analysis of marketing and mass communication strategies. Web.