Marketing Plan for Water Sensitive Nail Polish

Introduction Following a detailed market research on customer behavior and consumption dynamics of nail polish, we have identified the need to provide customers with a unique brand of nail polish that can easily be removed using water.Advertising We will write a custom report sample on Marketing Plan for Water Sensitive Nail Polish specifically for you for only $16.05 $11/page Learn More Through surveys and interviews, many users of nail polish products expressed concern about the additional costs that were incurred on nail polish removers. Some of them are sold at higher prices than the polish itself. This paper presents a marketing plan for a new nail polish that will save consumers unnecessary removal costs. Company Overview Founded in 1981 by Essie Weingarten, the original idea was to create an all-in-one fun and classic nail polish brand based on color differentiation. The founder filled a market niche that other brands had not identified. The Essie brand was sold to L’Orà ©al in 2010. The change of ownership made the brand penetrate into markets that were reachable by more customers including Target and Walgreens that employed masterpiece display methods for Essie products. L’Oreal has expanded worldwide taking the products to the international arena, a situation that made a great effect on the nail polish industry. This year, the Essie Company is planning to launch a brand new nail polish to reach low middle-class consumers who have been segregated by existing brands. The research reveals that venturing into this market will help increase the economies of scale besides promoting brand awareness among low-income earners. The new product will help consumers save a substantial amount of money on nail polish removers. Following its merger with L’Orà ©al in 2010, the Essie Company expanded significantly, reaching international markets. Currently, the company has over 90 outlets and 250,000 salons globally.A dvertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Industry Analysis Nail polish industry seeks to create good looks, especially amongst women, in terms of colors that match with factors such as moods, outfit, and season among other girly preferences. The industry has been booming gradually over the past three decades with many players flocking the industry with unique brands and marketing strategies. Numerous market surveys have shown that consumption of nail polish has increased since 2012 with brands intensifying marketing campaign using new advertisement technologies such as the internet. Statistically, 35% of the nail polish users consume over 27 bottles of nail polish annually. This state of affairs can be attributed to the rapid changes in modern fashion. Consumers of almost at status ranging from celebrities to young girls use nail polish. Essie group is among the leading brands as it continues to revolutionize the industry with innovative product development. The brand has reached diversified markets through Target and Walgreens stores; hence, competing favorably with other brands such as the OPI, Revlon, and Sally Hansen. Collecting Information and Forecasting Demand The Essie Company collects information regarding market dynamics and consumption trends in a bid make informed decisions prior to the launching of new products. This part presents the information collected in 2014 as the company focuses on the demand behavior of the new nail polish. The 2014 report on the nails industry statistics depicted a fast booming sector with expenditures on nail polish climbing from $8.28 in 2013 to 8.54 billion in 2014. Experts liken this growth to the tattoo industry by claiming that nail care is a form of self-expression (Redding, 2014). The products themselves were the sole drivers of the above-mentioned growth. Notably, Gel polish was shown to have revolutionized the nail industry.Advertising We will write a custom report sample on Marketing Plan for Water Sensitive Nail Polish specifically for you for only $16.05 $11/page Learn More Through intensive market research, especially on the technology involved in the nail polish industry, it has been revealed that customers wish for a beauty product that takes less than 10 minutes in removal. The social media was deemed powerful in increasing brand awareness for numerous beauty firms including Essie and L’Oreal through viral sharing of the artistic nail work. Most recently, Essie offered a nail polish contest, taking the nail art to the social media and streets. In fact, nail art forms one among the five most tagged and shared pictures on Pinterest and Instagram (Redding, 2014). Market growth was recorded among women aged between 26 and 35 years with girls between 16 and 25 years-old coming second in nail polish usage. The report reveals that the growth has been i mmensely contributed by the youths who are highly associated with the social media. In this regard, Essie brand aims to concentrate on this group through maintain a consistent online presence. Recently, there have been sponsored Twitter accounts popping up in every user’s account. This strategy intensified advertising campaigns for the cosmetic companies. Constant research on the behaviors of the online community is essential as it provides an insight into the advertisers’ choice of the medium and methodology. Identifying Market Segments and Targets The analysis of consumer behavior is a vital concept particularly in creating demand and moving a new product. It involves studying the prevailing demographics, psychographics, and consumer behaviors in the target market. This analysis contributes significantly to the successful entry of a new product. The Essie brand enterprise conducts occasional consumer analysis to ensure sustainable and consistent sales output. The new product targets women aged between 16 and 34 years. This age bracket comprises the main consumers of cosmetic products.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Essie targets a particular class of consumer’s who welcome the idea of removing nail polish with affordable materials such as water. Moreover, the Nail polish will be available for all consumers including users in fashion, TV, and movie shows who are important advertisers of the company’s products. Essie does rigorous market surveys through many avenues such as the social media forums, its interactive websites, and mass media shows to learn customer behaviors and monitor changes in consumption trends. This strategy helps in aligning product design and development to match the consumer needs. Through demographic analysis, the company has moved its other products successfully through its dedicated stores and outlets in 65 countries. The new product comes in diversified colors. The company acknowledges its customers’ different color preferences including the queen of England’s preference, ‘Ballet Slippers’. This fact explains the significance th at Essie attaches to its customer analysis. In addition, the Essie brand is recognized for its iconic shades that marry with the different countries in which its products revolve. The brand boasts of an unshakable reputation for its classic colors. In this regard, moving the new cost-effective product is optimistically a walkover. Creating Demand Brand creation is a significant aspect of any business. The Essie Company boats of a globally renowned brand name. However, the company intends to incorporate a robust brand campaign throughout its markets to stimulate the demand for the product. Advertising is a brand campaign and marketing strategy that has been in use for many years. It uses mainstream media including TV shows, in between news, billboards, and web-based internet advertising among others (Panzone Tiffin, 2012). The Essie Company has learned from the past that it has failed in advertising. However, the company is committed to allocating funds for promotions and advertisin g. The brand is eyeing emerging teen celebrities in the music and movie industries including Arian Grande, Charlie XCX, and Justin Bieber among others. This strategy has worked successfully for other brands including Sally Hansen brand. The innovative brand will also be advertised in superior magazines such as the Forbes and Glamour among others to seek more reputation and customer base. Blogging is also an important method of advertising that has been used extensively by many businesses (Tang, 2014). The Essie Cosmetics Ltd aims at establishing partnerships with experienced beauty bloggers to increase online presence as it targets the online community. Internet technology has played a crucial role in creating advertisement forums, especially in the last 5 to 10 years. Many users deem the strategy a powerful marketing tool in the twenty-first century. Blogging will help Essie to gain more customers that are loyal. A research that was conducted by Redding (2014) showed that the onlin e community respects beauty bloggers as products featured in blogs paint a lasting image in the consumer’s mind. Establishing collaborations with respected bloggers can propel Essie towards the creation of demands from non-interested clients. It can also create positive perceptions of potential customers thereby adding up to the existing customer base. Setting Product Strategy The company’s innovative product will be hit the market with a broad range of colors that will offer a variety of choices to consumers. The Essie Cosmetics Ltd is renowned for the creation of products that match different moods and fashion outfits at reasonable prices. The new product is designed for the diverse consumer demographics with both luxury and affordable products coming in already recognized colors worldwide. In the past five years, fashion has changed rigorously, especially with innovative beauty technology including magnetic enhanced nail polish introduced by Essie and the most recen t shade shifter launched by ORLY, which changes color with different environments and temperatures (Redding, 2014). With the new product being highly affordable, the company projects increased profitability in the near future. The industry is currently booming with brands coming up with tech-savvy products that seek to attain a competitive edge over each other. The growth potential of the industry remains steady and promising. In fact, the use nail polish has been in existence for numerous centuries with products getting better with each unique innovation Developing Pricing Strategies and Programs Marketing mix entails four strategic marketing practices that a new product goes through to reach target markets successfully. The 4Ps include product, price, place, and promotion (Panzone Tiffin, 2012). The water-resistant nail polish will enter the market in over 250 colors. The price for the nail polish will be differentiated based on the class of the targeted consumers and market segm ents. For the low-income earners, the nail polish will retail at $4 while for the upper-class consumers, it will retail at $8. The difference in price will be guided by the benefit that the upper and middle-class segment will enjoy, which will not be available for the other classes of consumers. Place refers to the geographical areas where consumers can obtain the product (Tang, 2014). The water resistant nail polish will be available in many beauty stores worldwide. The leading outlets in New York including Target and Walgreens will sell the new product. It will also reach worldwide markets in a period not exceeding twelve months through shipping that commences in a month’s time. Designing and Managing Integrated Marketing Channels (Distribution) The Essie Cosmetics Ltd wishes to use the established L’Orà ©al’s platform to attain robust and irreversible market entry and growth. In fact, the company expanded more than just a salon brand with the help of Lâ€⠄¢Oreal. The new product will reach more people in diverse and extensive markets including stores and cities worldwide. In addition, the new products will be available in both Target and Walgreens stores, which have recently become the main outlet stores for Essie’s products. In less than six months, the new product is expected to be available in 250,000 stores in 60 countries around the world. Essie uses a variety of distribution channels including warehousing and supply to retail outlets. International distribution is done through shipping to the different whole sellers and leading stores in the countries where Essie is represented. In fact, through L’Orà ©al, the Essie Cosmetics Ltd sells more than 50 products every second. With this apt marketing campaign, the company is highly optimistic that the new nail product will make a huge impact on nail polish markets globally. Through its diverse iconic ambassadors such as Beyoncà © Knowles and Jenifer Lopez among many others, L’Orà ©al moves beauty products rapidly given the celebrity perspective created worldwide. Designing and Managing Integrated Marketing Communications Through the help of L’Orà ©al, the Essie Cosmetics Ltd will employ apt marketing programs and promotion campaigns with a view of creating sustainable demand for the new product. Together with the reputable brand name, the promotional efforts will yield desirable results. The proactive programs will include the creation of integrated and interactive online presence including Pinterest, Facebook, Twitter, and Instagram (Tang, 2014). The Essie Company acknowledges the significance of social media platforms in the contemporary business world. Among the many functions it executes, social media marketing provides an interactive communication and diverse views and feedback from the consumers regarding tastes, preferences, satisfactions, recommendations, and expectations of the products (Redding, 2014). The information gathered from the clients is vital as manufacturers focus on adjusting product aspects to suit their tastes. Managing the Marketing Effort Marketing Objectives and Goals The introduction of the new water sensitive nail polish is in line with the company’s strategic objectives to increase brand awareness, reach a wider customer base, command brand loyalty through affordable beauty, scale up profitability, and satisfy a neglected market niche. Financial Objectives To increase Essie’s profit margin by 4% in 18 months To penetrate the low-income earners’ market with the new product with a view to increasing the brand’s sales by approximately 20% in 18 months Marketing Objectives To increase brand awareness particularly through e-transformation including social media, e-commerce, and blogging To compete favorably with the O.P.I brand in Fashion shows and movies To create demand for the new product through affordable pricing Competitor Analysis The main dir ect competitors of the Essie Company include the O.P.I Nail Lacquers and Sally Hansen. The former is the leading premium nail polish brand that is highly recognized for its divergent collections differentiated in terms of countries, fashion trends, TV shows, and movies. Through collaboration with the movie and fashion shows, the brand has established itself in high grounds that others have not reached for many years. The brand employs unique selling and marketing strategies. For instance, salons can only purchase O.P.I products through the company’s website. In addition, the brand is renowned for demand creation and desire. Sally Hansen is a specialized all-in-one beauty brand whose business centers on nail therapy. They combine nail polish with the tools for manicure and pedicure. This combination gives the brand a competitive advantage over others such as Essie that sell nail polish only. The Sally Hansen Company manufactures and distributes cosmetics such as topcoats and m anicure gels among others. This brand competes closely with Essie’s Insta-Dri that sells in drugstores where the new Essie product is expected to enter just like the other products of the company. Sally and Hansen have colonized many towns that Essie has not reached. This situation has made the brand a stronger competitor for Essie. In addition, the brand enjoys an extensive customer loyalty since its product movement is not hindered by demographic factors. Research indicates that customers of diverse ages, races, income levels, and different preferences accept Essie’s products. SWOT Analysis SWOT analysis is a summary of an organization’s strengths, weaknesses, opportunities, and threats in relation to its micro and macro-environments (Panzone Tiffin, 2012). Strengths Customer loyalty. Essie brands boasts of a strong reputation that has created a strong customer loyalty for its products for many years. This competitive advantage will contribute to the success ful penetration of the new nail polish into the market. Reasonable price: All products of the Essie Cosmetics Limited are sold at friendly prices. Its affordable pricing strategy has proved successful in product selling and distribution. Numerous avenues for customer buying. Essie products can be purchase online and in the many stores in different countries around the world. Diversity of colors that their customers have treasured. Essie’s products come in more than 250 colors. Diverse consumers and distributors. Essie products are sold to both retailers and whole sellers. In addition, the outlets are highly differentiated to serve the different markets dynamics. Some of the high-end outlets include the Target and Walgreens. Weaknesses Less vibrant advertising strategies (Redding, 2014). The Essie Cosmetics Ltd lags behind in advertising its products as opposed to its close competitors. For instance, the O.P.I Company uses movies and TV shows to advertise its products. It wa s not until most recently that L’Oreal started integrating Essie products in its known advertising campaigns including the use of iconic brand ambassadors. Essie products are available almost in every beauty shop. This situation makes it appear like a cheap brand (Redding, 2014). The product will come in already many existing colors that are well known by the consumers. Therefore, recognizing it as a new product will not be at a glance. This limitation can slow the product’s movement; hence, slowing the sales. Opportunities Essie’s new product can command a bigger market if it comes with various tools and Gel kits. The brand has other market gaps to fill such as introducing nail polish brands such as nail pencils, nail tape, and nail therapy among other trendy innovations. Through collaborations and mergers such as movie shows, fashion shows, and TV shows, the brand can achieve higher targets. Threats The biggest threat for the new product is the competiti on presented by other established and vibrant brands. People can perceive the new product removable by water as a low quality product. Missing out significant market trends such as nailing pens and manicures puts the brand in a low profile as far as brand awareness is concerned. Customer Service The Essie Cosmetics Ltd offers personalized services to its customers (Tang, 2014). It has agents in all stores worldwide including Target and Walgreens whereby they assist customers in choosing their preferences from the displays. They also perform demonstrations on the application of the nail polish products. The agents are highly trained in product handling and use. As a result, they provide professional services to the esteemed customers. In addition, the Essie brand has recently acknowledged the increasing importance of online customer support that is cheap, instant, and effective. With the changing purchasing and consumption behavior and increasing importance of interactive marketing strategies, the brand intends to increase its online presence through assigning tech-savvy agents to represent the company’s interests in the web. In a campaign to launch the new promising product, the Essie Cosmetics Ltd will allocate a substantial budget that will hasten the product recognition through both direct and virtual customer supports (Tang, 2014). Expense Forecast To achieve the aforementioned marketing strategy, Essie brand has allocated $500,000. The following table extrapolates the usage of the funds in a bid to achieve a successful product launch and support promotion and distribution. A great portion of the allocation will be spent on product distribution and placement both locally and overseas. The rest of the money will cater for product promotion, advertising, and increasing online presence as well as customer support (Redding, 2014). The firm also intends to open a YouTube channel where customers and the public can access press releases, new product infor mation, and demos. It will also provide a platform for customers to share their videos with the company (Tang, 2014). Together with other strategies, there is an expected creation of more demand and strengthening of the renowned brand name for Essie. The firm’s new product will boast of the established and working marketing avenues that include more than 250 stores available in 60 countries. Activity Allocated amount ($) (p.a.) Overseas Distribution 250,000 Local Distribution 125,000 Blogger Advertising 25,000 TV shows Advertising 50,000 Online Presence 25,000 Customer Support 25,000 Market Forecast The company’s management is aware of emerging economies, especially in China and Vietnam. Plans are underway to establish stores in those markets to offer both luxury and affordable products. Given the rising class of wealthy men in these markets catapulted by the growing markets, any firm can benefit significantly in the near future. Critical Issues The n ew product is not likely to pick as speculated in the first and second quarter; hence, the firm can incur costs during the sluggish period (Panzone Tiffin, 2012). The revenue obtained from other products will be used to support the sluggish period. This situation will most likely shrink the company’s profit margin. However, the firm’s potential of rapid sales for the new product is optimistically high, as other products have surpassed the management’s expectation in the past with quick recognition and acceptance by the consumers. Conclusion The purpose of this marketing plan is to exhibit the organization’s marketing strategies and product placement in the market. From the aforementioned, the report has revealed that the firm will employ robust strategies besides embracing e-transformation in the modern day business practice. The company has a strong brand name and customer loyalty all over the world. This situation gives the enterprise a competitive adv antage over the rivals. It has shown how the allocated funds will be used in distribution and promotion of the brand new one of its water resistant nail polish. Reference List Kast, C., Lavinthal, A., Ruderman, Z., Fields, J. (2014). Beauty Watch. People, 81(25), 79-86. Panzone, L., Tiffin, R. (2012). The Impact of Price Promotions on Producer Strategies in Markets with Large Product Heterogeneity. Agribusiness, 28(4), 421-439. Redding, M. (2014). Nail Consumers Demand Newness. Beauty Packaging, 19(1), 58-65. Tang, W. (2014). Nail Tech. Flare, 36(7), 50. 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