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Marketing Plan

Marketing Plan

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EXECUTIVE SUMMARY
Purposes of the Report The purposes of this report are to (1) provide background information on the natural personal care products market and the current marketing situation of Moonsnail Soapworks, (2) create quantifiable objectives for Moonsnail Soapworks, (3) formulate a marketing plan and budget in regard to the company’s products, prices, distribution, and promotion to reach the desired objectives and goals, and (4) develop control procedures for measuring Moonsnail’s progress. The information included in this report is cited from numerous marketing books, Internet and magazine articles, and personal interviews with those related to the natural personal care products market. It is this collection of sources that supports our recommendations for Moonsnail Soapworks regarding courses of action to be followed. Marketing Situation The natural personal care products market is growing rapidly, resulting in the continuous entrance of new competitors into the market, both narrow and wide scope. Moonsnail Soapworks is just one of many companies offering all-natural soaps, skincare, aromatherapy, healing, and baby products. Currently Moonsnail distributes its products through one retail store, trade shows, and mail orders. Objectives The objectives we have created for Moonsnail Soapworks are to (1) increase Internet and mail order sales to $40,000 in revenues per year by 2007, (2) increase trade show attendance to a total of three shows per year to increase trade show revenue by 50%, and (3) improve augmented and actual product through improved customer service and packaging in order to retain loyal customers. Recommendations Recommendations to meet the above objectives include (1) creating new product labels with attention to product usage and safety, (2) taking measures to reduce cognitive dissonance such as toll-free numbers and post-purchase emails and cards, (3) maintaining a prestige pricing strategy, but also expand bundle pricing, (4) attending two new trade shows to distribute new catalogs, (5) initiating an environmentally friendly jar return policy, and (6) improving upon Moonsnail’s website, specifically with a “My Account” section. Control Procedures By beginning with measurable objectives and goals, Ridgway will be able to compare original objectives with actual performance at the end of the year. In addition, continuous customer feedback can be examined to evaluate customer service performance. Finally, Moonsnail can employ the aid of market research agencies such as Millward Brown or ACNielsen to evaluate the effectiveness of its marketing plan.

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Introduction
Moonsnail Soapworks was founded as a partnership in 1995 by Jennifer Ridgway, her husband Marcus Luttermann, her brother Greg and his wife Michelle. Currently, Moonsnail is owned by Jennifer and her husband and they produce various all-natural, hand made products including; soap, skincare items, healing products, bath and body products, and aromatherapy products. Jennifer is now looking to expand her product mix by adding a line of assorted baby products, specifically, Moonbaby Bum Cream. This paper will include the following: a full market description, a product review, review of competitors, a review of distribution, objectives and issues, a marketing mix strategy which includes an action plan and budget, a development of control procedures, and appropriate appendices with additional information.

Market Description
Jennifer Ridgway’s Moonsnail Soapworks is primarily focused in the market of natural personal care products; selling skincare, healing products, and aromatherapy. In the year 2000, however, she also broke into the baby care market with the release of her Moonbaby Bum Cream. Demographic Analysis of Consumers The main target market of Moonsnail Soapworks is young women/new mothers (20-30 years) and middle-aged women (40-50 years). In 2002, on Prince Edward Island (where the store is located), the number of women estimated to be in the 20-30 age range was 9,306, and those in the 40-50 age range was estimated at 11,106 (PEI Annual…, 2003). Young women who are between 20 and 30 years old, are generally beginning to have children, perhaps taking an interest in Ridgway’s baby product line. In addition, according to a 2002 report by the Centers for Disease Control and Prevention, the average American woman was almost 25 in 2000 when she had her first child. That is compared to an average age of 21.4 years in 1970 (“American Women…”, 2002). These women who are now waiting longer to have their first child will have a higher disposable income to buy products such as Moonsnail’s baby bum cream. Middle-aged women also have more disposable income to buy high-quality products like those of Moonsnail. In addition, as noted by Sue Zano, owner of The Farmacy, a natural products store in Athens, Ohio; as women get older they tend to dwell more on health and lifestyle, and therefore take a greater interest in natural personal care products (Zano S, Personal Communication, 2003, October 6). Psychographic Analysis of Consumers While examining the demographics of target markets is important, when dealing with the natural product market it is often even more crucial to look at the psychographics and lifestyle trends of consumers. Such consumers are usually connected more by values rather than a consistent demographic basis. As Elaine Lipson says in her article in the Natural Grocery Buyer, “values know no boundaries of age, ethnicity, gender, income level, voter registration, or other quantifiable category (Lipson, 2003).” Characteristics of consumers in Moonsnail’s market include:  Desire to protect the environment  Socially conscious

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Concern for personal and societal health

The above characteristics of consumers were among the top factors that drive the average LOHAS (Lifestyles of Health and Sustainability) consumer. With her main focus on creating allnatural products, it may be beneficial for Ridgway to focus on this type of consumer. LOHAS consumers are those whose attitudes, behaviors, and use of goods and services are significantly affected by their health concerns – their family’s health, the sustainability of the planet, their personal development, and society’s future. They make brand choices based on environmental values. In fact, according to the LOHAS Journal, such consumers are willing to pay 20% more for products that meet their standards (Emerich and French, 2002). (See Appendix A for details on LOHAS consumers) Marketing Environment Factors Affecting Consumer Purchasing  There is a declining birth rate in the local area of Prince Edward Island. According to a statistical review written by Patricia J. Mella, Minister responsible for the status of women on PEI, “few Prince Edward Islanders are having more than two children and many are having one child or no children (Mella, 1999).” This may especially effect the success of Ridgway’s baby care line.  An increase or decrease in tourism could affect purchasing. As stated by the Prince Edward Island Annual Statistical Review of 2002, “the number of persons that visited the Island for pleasure or business has been in decline since 1998, while their spending has been trending upward (PEI Annual…, 2003).” Whether the number of tourists and the amount of their spending increases or decreases, purchasing at Moonsnail Soapworks is still affected.  Purchasing is impacted by competition, both narrow and wide scope. The natural personal care market was worth $4.1 billion in 2002, a 10% increase from 2001 (Uhland, 2003). With the natural and organic sectors growing so rapidly, more competitors are breaking into the market every day.

Product Review
Moonsnail Soapworks has an assortment of over 30 products all handcrafted and designed for personal care. Many products come in a variety of fragrances and options of purchase. Moonsnail Soapworks offers seven different product lines, they are: Soaps, Skincare, Healing, Bath and Body, P.E.I. Shop, Anne of Green Gables, and Home Aromatherapy. A new line was recently introduced designed specifically for babies’ skin, the line is named Moonbaby. Three products are included in this line: Moonbaby Healing Soap, Moonbaby Bum Cream, and Moonbaby Healing Oil. The prices for all the products range from $4.25 for a bar of soap up to $30.00 for a soap stack which makes eight bars. The average price of most products lies around $7.95. (For a full list of products and prices see Appendix B)

Review of Competitors
Widest Scope All companies who produce competing baby care products in bulk for retail are Moonsnail’s widest scope of competitors. Although none of these companies are considered Moonsnail’s

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direct competitors these companies do make up the bulk of the sales. Due to their mass production and use of preservatives they can make more products for cheaper which last longer. Dove, Johnson and Johnson, as well as others fit into this category. These are a threat because not only do more people buy this type of retail product, but with the number of people who use all natural products rising, there is a possibility of more of these companies moving into semiorganic territory. Some of these large corporations already provide products that are sold at health grocery stores. Due to their production methods most of these huge companies have to use preservatives, unlike Moonsnail Soapworks. Although technically inferior to Moonsnail’s soaps, their “organic” label may appeal to some less knowledgeable consumers. These large mass production companies are not Moonsnail’s direct competition but are still competitors at the largest scope. Non Local – Narrow Scope The non-local narrow scope competition companies are those that do not sell this type of product near Moonsnail Soapworks but take natural product market share from the company. These include other companies in which people can get this type of product but not necessarily locally. These types of competitors are damaging to the company’s mail ordering and Internet sales because they offer Moonsnail’s niche of product. Some companies who fit this description are Tom’s Of Maine and Burt’s Bees. Local - Narrow Scope The narrow scope competitors are local businesses who are in the same area and have the same type of products and are thus Moonsnail’s most direct competition. Some local direct competitors include:  Lunenburg Soap Company Located in Lunenburg, Nova Scotia they focus primarily on soaps and have no products designed specifically for babies. Their relatively expensive soaps are made using the long saponification process while only using cooking grade vegetable oils, 100% essential oils, and natural colors with few perfumes to make long lasting, specialty soaps. They offer 24 different fragrances. The other lines offered include: specially shaped soaps for the holidays, face and body mists, effervescent bath salts, soap balls, and a few sampler packs featuring a variety of products.  Garden By The Sea Located in St. Andrews, New Brunswick they have relatively cheaper prices, with no products made specifically for babies. All products are 100% vegetarian and naturally made using herbs, essential oils, and fresh ingredients. They have 37 fragrances of soap available, all sold at 3.5 ounces and costing $3.50. The ‘Fizzing Sea Spirit’ lines are bath salts offering 18 different fragrances all priced at $3.95. The Foot Fizzlers’ product is a healing salt for feet priced at $6.95 for a package of 5. The ‘Special Tea’ products are all organic teas with 17 different flavors. 50 grams can be bought loose for $2.45 or 28 bags can be bought for$5.50. 6 fragrances of massage bars are offered as aromatic moisturizers for $3.00 a bar. Two fragrances of moisturizing lotions are offered at $7.95 for 100 ml or $13.95 for 200 ml.  Nana’s Pantry Soaps Located in New Brunswick, they are also a direct competitor. No information was available for this company. (To see relative locations please see map in Appendix C)

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Review of Distribution
According to the Organic Trade Association, the organic product market was 9.1 billion dollars in 2001 and is growing by more than 20% per year. This presents the need for evaluating sales trends and distinguishing what distribution channels Jennifer Ridgway of Moonsnail Soapworks needs to maintain, which channels to expand and how. The most recent documented total sales of Moonsnail Soapworks were $80,575.00 in 1999, an 11% growth over 1998. There are many distribution channels that Jennifer Ridgway faces in deciding which will generate the most sales. These specific channels are sales in the Charlottetown store, the Christmas One of A Kind Show in Toronto, the mail order catalog and the website. Ridgway’s most profitable channels are her retail sales and her wholesale sales. These channels accounted for 58.9% and 26.4% respectively in 1999. Prince Edward Island is known for its tourism during the months of June, July and August. Summer tourism is a very profitable time period for Moonsnail Soapworks. Retail sales in the 1999 and 2000 summer months were $11,127.00 and $22,353.00 respectively. This is a large portion of total sales. On the other hand, mail order sales accounted for only 2.4% of sales in 1999. Channels of Distribution  Prince Edward Island is strategically located in a region known as the Maritime Provinces in Canada which allows easy access to the large urban markets of central Canada as well as the eastern seaboard of the United States.  Prince Edward Island is also surrounded by the world’s two largest trading blocks, which are the European Economic Community and NAFTA.  Prince Edward Island is a day closer to Europe than western provinces of Canada and air travel is approximately two hours to Boston or Toronto. A concern in terms of distribution is the fact that the MoonBaby Bum Cream, along with all other Moonsnail products, do not contain preservatives. This is a concern because whatever distribution channel Moonsnail pursues, it needs to be done in a timely manner that will maintain the quality of the product.

Threats and Opportunities Analysis
(See Appendix D for a full SWOT analysis)

Objectives and Issues
There are three main objectives we recommend Moonsnail Soapworks implement. Increase Internet and mail order sales to $40,000 in revenues per year by 2007. An issue regarding the attainment of this objective is Moonsnail’s current web site design and usability. Currently customers are not able to directly order products online. They must go through a lengthy process to purchase any items. A second issue is the distribution of catalogs. Presently customers can only receive the Moonsnail catalog by requesting it online, or visiting her store on P.E.I. 2. Increase Trade Show attendance to a total of three shows per year to increase trade show
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and satisfied customers typically tell three to five people about the company.6 revenue by 50%. Costs would include increased spending on customer relations for post-purchase follow-ups and special promotional offers. Solving customer complaints in a timely fashion is extremely important. but more specifically. and 68% of all people who stop doing business . (See Appendix E for an example of a Moonbaby Bum Cream label) This will help prevent product liability actions from being filed against the company. This is extremely important because not only are her products being applied to human skin. and increased employee labor hours due to Ridgway’s absence. Currently from our understanding. This can be achieved by creating a toll-free help line which customers can call regarding any questions or concerns. Moonsnail’s goal is to provide an all-natural alternative to mass produced main stream soaps and personal care products. Cost of implementation is a concern regarding this objective. Improve augmented and actual product through improved customer service and packaging in order to retain loyal customers. Currently trade show revenue is 24% of total revenues. Moonsnail products offer a variety of healing and moisturizing benefits without the use of chemicals. To improve Moonsnail’s actual product. Another issue is Moonsnail’s dedication to environmental conservation in all aspect of its business. Another strategy which would reduce cognitive dissonance is to send out post-purchase e-mails within two weeks after any online order. More specifically. This will also increase Moonsnail’s catalog distribution. Ridgway must selectively choose which shows will be most beneficial to attend. entry fees. This is exceedingly important. as it is five to six times more costly to attract new customers than it is to keep old clients. In addition to the costs. which can reduce future liability issues. The cost of implementing multiple customer service strategies is a major issue. 990. which is $18. Product feedback from customers can greatly reduce the risk of defective products remaining on the market for an extended period of time. Moonbaby Bum Cream acts as a barrier between the baby and the diaper. To improve Moonsnail’s augmented product. It is even more important to reduce cognitive dissonance. Ridgway focuses very little attention to safety issues. accommodations. Costs would include: travel. we recommend new product labels with strict attention to product usage and safety. as Moonsnail can control 96-99% of all reasons a customer will stop doing business with them. An increase of 50% would earn Moonsnail $28. Ridgway can also send personalized thank you postcards to each customer who purchases merchandise through mail order or through the website. This will also increase Moonsnail’s knowledge of customer wants and needs. 485 in total trade show revenues. Ridgway should improve customer service and undertake measures to reduce cognitive dissonance. Marketing Mix and Action Plans Product All Moonsnail products are high quality and hand made in Ridgway’s studio on Prince Edward Island. babies sensitive skin. as 54-70% of customers who complain will do business with the company again if their compliant is resolved. which allows Moonsnail to allocate resources towards the production and distribution processes. The design and packaging of Moonsnail’s products are simple and cost efficient. 3. (See Appendix F for a sample e-mail and thank you post card) Finally. Post purchase contacts make the customer feel valuable and reassures them that their purchase has quality and guarantee.

(See Appendix H for FedEx information) All products will continue to be made in the current location of Ridgway’s retail store. with only 250 different companies present. Last year this show ran from September 4-7 and announced a remarkable 20. This show is much smaller. The first trade show we suggest Ridgway attend is the Natural Products Expo East in Washington D.I. R. This process can be made more efficient for the increased consumption by hiring more employees so the only costs incurred are those of maintaining just one store. This implies to the public that Moonsnail products are of higher quality than the competition. but it is worth it to distribute catalogs to Moonsnail’s specific market.E.000 attendees from 75 countries with 7.500 exhibitors present. These gift baskets will be highly promoted during the holiday season as gift ideas which will not only help to expand Moonsnail’s demographic market to male purchasers. At these trade shows Ridgway has the opportunity to sell products and distribute catalogs.I. This is evident through a personal interview with a Moonsnail customer. We recommend Ridgway attend two new trade shows a year and continues attending the Toronto Christmas show. This will help to maintain the unique image of Moonsnail products. This needs to be done while maintaining consistent retail sales.E. must be kept as the only store as the costs of opening any new stores would not be feasible in the company’s current financial situation. but it will also provide a larger variety of choices to Moonsnail’s current market. (Gerson. Competition will be high. 198-219) Price Moonsnail currently utilizes the prestige pricing strategy. The most efficient way to distribute catalogs and online orders is to outsource distribution through FedEx. would also be difficult to replicate due to the specific ingredients and handmade process. Promotion . Illinois. The current retail store on P.7 with a company is because of poor treatment. Place Mail order and on-line sales need to become and have the potential to become a much greater distribution channel. We strongly recommend that Ridgway offer at least one gift basket per product line. The second show Ridgway should attend is All Things Organic in Chicago. as well as directly reach Moonsnail’s target market.C. giving her the opportunity to stand out more to customers. rather than problems with the actual product or competition. The manufacturing process occurring at the current store on P. (See Appendix G) A second pricing strategy is bundle pricing. Attending all-organic trade shows is an easy way to attain customers with similar psychographics. We recommend Ridgway continue this pricing plan because we feel that rather than expanding to more retail and wholesale stores. Attending these trade shows will also give Ridgway the option of attempting to gain a partner with organic companies that offer different product lines. novelty items. Increasing distribution can easily be done by attending more trade shows each year. and a few gift baskets with product mixes for a variety. Moonsnail’s limited distribution channels allow Ridgway to have an increased profit margin because of higher prices. This also allows her to maintain her product as high quality. “Marketing Strategies For Small Businesses.

000 in revenues per year by 2007. Ridgway has been described as a friendly and personable individual by a recent customer. This loose partnership will enable Moonsnail Soapworks to be added as a link on their website. word of mouth. Word of mouth is the most valuable form of advertising. Secondly. comments. This strategy not only encourages customers to purchase Moonbaby Bum Cream more than once.8 Advertising is essential for any business to grow and expand. Ridgway can evaluate the strategies of Moonsnail Soapworks by turning outside the company to market research agencies. By creating a toll-free phone number. and problems. These companies help in collecting measurable market information. . Account members will also be notified by e-mail any time there is a special promotional sale or discounted item. but it also demonstrates Moonsnail’s overall concern for the environment. as it is the key to retaining customers and building a good brand image. Finally. planning and implementing marketing strategies. 2003. We propose that Moonsnail concentrate on three specific advertising techniques. This would offer special discount prices to returning customers who have established an online account with Moonsnail Soapworks. A pre-paid postage stamp would be sent with their original purchase. This is an excellent way to reach people who may not have otherwise heard of Moonsnail Soapworks. one of the objectives for Moonsnail is to “increase Internet and mail order sales to $40. Personal Communication. measurable. October 3) She must always uphold this persona. (Benn. and vice versa. S. Ridgway can place promotional advertisements in a variety of environmental or health conscious magazines. and provides a specific time frame. In addition. The third advertising technique would reach out to those who spend a lot of time on the Internet. sending out post-purchase e-mails and thank you cards. Ridgway can constantly have feedback from her customers. or magazine articles. The first is to take advantage of the trade shows attended each year. The customer would then receive the product without paying any shipping or handling charges. This strategy would allow customers to send their empty Moonbaby Bum Cream jar back to the store to be reused. Whether it is through television commercials. Ridgway can also retain customers by implementing two new sales promotions. Ridgway can propose a partnership with another unrelated company that targets her market as well. Magazine articles are a less expensive form of advertising. The first is the jar return strategy. advertising must be done on some level or the company will have no chance of growth. For example. Ridgway can easily compare her actual Internet and mail order sales to this goal. so Moonsnail would incur all costs of shipping. perfect for small businesses such as Moonsnail. (See the Budget Plan in Appendix I for all costs incurred by proposed strategies) (See additional packet for web site improvement) Control Procedures Jennifer Ridgway can monitor the progress of Moonsnail Soapworks at the end of each year by comparing the planning objectives to the actual performance of the company.” Because this objective is direct. and encouraging customers to communicate with the company about ideas. which appeals to the target market. The second new sales promotion to help retain customers is the new “My Account” section added on the website. and developing programs that will influence consumers. Moonsnail’s customer service goals can be monitored continuously throughout the year. such as Millward Brown or ACNielsen.

but also attend the Natural Products Expo East in Washington D. Focus on two main cost strategies. IL.9 Conclusions 1. Provide customer incentives while remaining environmentally friendly. Recommendations 1. Create “My Account” section on website. 6. Continue to attend Toronto’s One of a Kind Christmas Trade Show.C. and create mail personalized thank you post cards. Reduce cognitive dissonance. send out post-purchase e-mails. and attend the All Things Organic Trade Show in Chicago. 6. Attend more trade shows. Add new labels with more precise warnings and product usage descriptions. Improve usability of website. 4. Create toll-free help line. Focus more on safety to reduce the risk of product liability suits. 2. 5. . 3. 4. 2. 3. Maintain prestige pricing and implement more bundle pricing. 5. Implement jar return policy.

Available: http://www. (2003). 1-2.investor. Marketing: An Introduction. Cited: 2003. October 14.law. Centers for Disease Control and Prevention. and Emerich.investor. Available: http://www.jnj. Available: http://www. Strategic Planning Process at Johnson & Johnson [Online]. Available: http://www.com/governance/criteria. Cited 2003.com/. October 17.L. Available: http://www. Corporations : An Overview [On-line]. Upper Saddle River. M. October. North America’s All-Organic Conference and Trade Show [On-line]. Hewlett Packard. California: Crisp Publications. (2003).ca/business/217. R. Garden By the Sea.legalline.cfm.pressurel/r0211211. October 13. French.cfm. Bean. (2002).hp. October 11. Cited 2003. and Kotler. Available: http://www. October 10.html. [On-Line]. Available: http://www. [OnLine]. (2003). October 11.com/hpinfo/globalcitizenship/environment/recycle/index. (2002).llbean. (2002). Criteria for Nominations to the Board [On-line]. (2003). Cited 2003. 217 Corporations : Advantages & Disadvantages [On-line].L.html. Aveda. Cited: 2003. (1994) Marketing Strategies for Small Businesses.10 WORKS CITED All Things Organic. Cited: 2003.com. L. Cited 2003. Armstrong. HP Environment: Product Return and Recycling. October 15. 198-219.jnj. (2002). Legal Line. [On-Line]. G.aveda. Johnson and Johnson. [On-Line].gov/od/pc/media. October 10.edu/topics/corporations. Cited: 2003. Welcome to L. Available: http://www. Bean. P.htm.gardenbytheseasoap. “The LOHAS Consumer Identified!” LOHAS Journal 3(1). NJ: Prentice Hall. S. (2003).com. Cited 2003. . Menlo Park. Cited 2003. 63. Learn about the natural ingredients Aveda uses in it’s products.atoexpo. 12. Cornell Legal Information Institute.cornell. Gerson. Johnson and Johnson. Available: http://www.com/strategic.html.cdc. (2001). (2003). American Women Waiting to Begin Families [On-line]. Available: http://www.com/. (2003). October 13.

Attendee Pricing [On-line]. Moonsnail Soapworks. Generic Job Titles [On-line].” Journal of S Corporation Taxation 6(3). (1996).com/naturalcategorybuyer/ncb_backs/aug-sep_03/pool.xmission. New York: John Wiley and Sons Inc. October. October 18.htm.html. Nielsen. J.com.statcan. 16. October 6. E. Tom’s of Maine. (2003). J. October 9. [On-Line] Available: http://www. October. Moonsnail Soapworks. October 17. Methods for designing usable web sites. 91.usability. Everybody in the Organic Pool.com/~arts/soap/. Cited 2003. 16. Statistics Canada.ca/photos/original/29annualreview. Moonsnail Soapworks. 12. (2003). (1996). Let Users Control Font Size.com/alertbox/20020819. Schermerhorn.cfm.11 Lipson. Provinces and Territories. Available: http://www. October 12. Salary Source. J.pdf.useit.expoeast. Cited 2003. Cited: 2003. Nielsen.gov/methods/planning. (2002). 2. Available: http://www.usabilitynet.html Cited: 2003. Cited: 2003. 87. 16. Nielsen Top 10 Mistakes in Web Design.com/attendee/pricing. PEI 29th Annual Statistical Review 2002.census96/table1.cfm. Available: http://www. . Cited: 2003. Population by Sex and Age Groups (As of July 1st) [On-line]. Available: http://www. (1995). [On-Line] Available: http://www. “A Review of Federal Income Tax Criteria and Related Issues in the Entity Selection Process. Core Concepts of Management.htm Cited: 2003. Natural Products Expo East. (2001).ca/english.pe. 1991 and 1996 Censuses-100% Data [On-line]. August/September). 246-250.moonsnailsoapworks. Cited 2003. Population for Canada. October 9.cfm. Natural Grocery Buyer [On-line]. October. October. (2002). Tom’s of Maine – Working with nature to make a difference. 80. (2003. [On-Line]. Cited: 2003. [On-Line].newhope. [On-Line]. Available: http://www.salarysource.tomsofmaine. [On-Line]. Annual Report.org/management/b_mistakes. (2004). Lunenburg Soap Company. J. Elaine.com/description. Available: http://www. Available: http://www. (2003). Nielsen. (1999). (2003). Cited 2003. Cited 2003.. The University of Western Ontario. (2003).gov. October. Meyers. Available: http://www. Available http://www.com.

(2003.12 Uhland. Natural Grocery Buyer [On-line]. Natural Personal Care Products Bring Glow to Retail Sales. Available http://www.cfm Cited 2003.com/naturalcategorybuyer/ncb_backs/aug-sep_03/glow. October 12. Available: http://www.ca/photos/original/women_pei. Vicky.pe.pdf.newhope. Women in Prince Edward Island: a Statistical Review. Cited 2003. August/September).gov. Chapter One Population and Transition [On-line]. October 9. . (1996).

13 Appendix A LOHAS CONSUMERS Figure 1 – LOHAS consumers as percentage of population Figure 2 – Top 12 factors that are used as predictive measures of the LOHAS consumer .

25 3.95 7.E.95 9.25 4.95 6.95 7.95 7.95 8.930 .95 8.25 30.I.00 6.475 21.95 14.95 8.95 14.95 10.I.95 9.25 15.14 Appendix B PRODUCT REVIEW Revenue for 1999 Retail sales Wholesale sales Mail order sales Products and prices SOAP Bar Soap Stack Soap on a dish Gift box SKINCARE Herbal Face Cream Moondew Cream Herbal Eye Cream Cleansing Grains Clay Masks HEALING Lip Balm Chest Rub Tea Tree Salve – Small Tea Tree Salve – Large Sports Rub Healing Salve BATH &BODY Bath Oil Bath Salts Massage Oil Spritzers Chai Body Cream with hemp oil Herbal Bath Teas Body Balm massage/lotion bar Hair Treatment P.95 5. SHOP Red Clay and Kelp Soap P.95 4. Sand Scrub Soap Easterly Breeze Bath Salts – Small RETAIL SELLING PRICES $ 4.256 1.95 $ 47.95 7.95 7.95 9.25 9.95 12.95 5.E.

95 15.95 20.95 18. (2001). The University of Western Ontario: Moonsnail Soapworks.25 5.95 18.95 9.95 12.95 18.95 4. Appendix C .25 9.95 9.95 Source: Moonsnail Soapworks.95 18.15 Easterly Breeze Bath Salts – Large SeaSoap Island Fizz Tub Tickler ANNE OF GREEN GABLES Anne’s Garden Soap Anne’s Garden Bath Salts Gift Basket of Anne HOME AROMATHERAPY Aromatherapy Sampler Aromatherapy Diffuser Sampler and Diffuser Combo.95 3. Annual Report.95 12. Aromaboxes Herbal Dream Pillows Grubby Gardener Giftbox MOONBABY Moonbaby Healing Soap Moonbaby Bum Cream Moonbaby Healing Oil 11.

16 LOCATIONS OF LOCAL COMPETITORS .

Garden By the Sea.. Nana’s Pantry Soaps Organic retail stores Appendix E .17 Appendix D Strengths Emphasis Close Weaknesses Poor on production of high quality goods and personal interactions with customers Location of store (tourism) Environmentally friendly usability of website to expand business Lack of focus on safety and communicating safety issues to consumers Reluctant Opportunities Natural Threats Cheaper product trade shows Changing demographics and psychographics (more interest in natural product market) Catalog and online retail sales commercially made soaps and creams Local competitors – Lunenburg Soap Co.

18 MOONBABY BUM CREAM LABEL Appendix F .

com and look under environmental products. Thank you for your most recent purchase. We hope you enjoy your products and continue doing business with us. Moonsnail Soapworks takes pride in our industry and making our customers happy. . The Staff of Moonsnail Soapworks PS Don’t forget about our bottle return policy to receive free shipping on your next purchase. Sincerely.19 POST PURCHASE E-MAIL AND THANK YOU POSTCARD EXAMPLE Dear Customer. For more information on this visit www.moonsnailsoapworks.

If you have ever purchased Moonsnail products. Did your product have a shelf life or expiration date on it? Yes. The owner was very personable as well. 6. 8.E. 4. I believe that was their main selling point and their whole appeal as well. I don’t remember exactly because it was a while ago when the company was first starting out.. It was something fun to purchase from the locals of Prince Edward Island. Where did you hear about Moonsnail Soapwork’s store and products? When I went to Prince Edward Island for a family vacation it was one of the stores we stopped at. How many items did you buy? Approximately three 5. 7. soap. what were they? A face mask. were you there in the summer during the tourist season? Yes. What was the reason for your purchase? My family and I enjoyed the products and wanted to give business to the new company that was just starting out. If items were purchased on P.20 Appendix G CUSTOMER INTERVIEW 1.I. if anything? Perhaps how they are organic and handcrafted. Source: Personal Interview with Sarah Benn Appendix H .E. I think so. Would you recommend the products to family and friends? Yes. 9. I used to spend a month of every summer in P. however I tend to think of their products more as a novelty. Ontario 2. Were you aware that all their products were organic? Yes I was.I. 10. 3. and body mist. Where are you from? Toronto. What makes their products different than other body care products.

Available: http://www. Flexible shipment planning that can help lower transportation expense through a process of consolidation. inventory management and compliance with your suppliers. Shipment management that delivers your products where. its just smart business to let someone else stock the shelves.com. and product availability—and when it comes to non-core functions like transportation management. when and how your customers want them. Cited: 2003. mode selection and service levels. Appendix I . [On-Line].21 FedEx DISTRIBUTING FedEx Transportation Management Program Transportation Management has become the second most frequently outsourced component of supply chain management. aggregation.fedex. FedEx Transportation Management Program. (2003). The following are components and advantages of FedEx Supply Chain Services      Improved production planning. Source: FedEx. Successful companies know their future lies with perfecting their core competencies—marketing. Cost-efficient supply chain management that can help improves your business models bottom line. Financial settlement and operational reporting that can reduce administrative costs and provide you with the matrices you need to better manage your business. product development. October 17.

30 .com) 5. single room. and productions. full color.Ramada Inn O'Hare Airport single room. This is a rough estimate from “twothirty” media’s owner.Halifax.000 catalogs Each catalog: 9x6.Halifax.95/ US dollars a month at a highly reliable web hosting company Media Temple. Entry Fee: Free (trade show only) TOTAL: $489. personal communication. Appendix J .00 .000 2.000-20. Airfare: $317. Secure Shopping Web Server With 30 gigabyte monthly transfer limit and the backend capability to set up a shopping cart it will be approximately $49. 6. Washington D. and shuttle service provided Entry Fee: $55. Producing Catalog 100.000 post cards @ $0. 4 days.00 (Source for catalog and thank you card: Hopkins Printing.com) 4. Attending Natural Products Expo East.00 .com and http://www. 4 days.expedia. photo quality. news. 3 nights.C. Nova Scotia to Chicago O’Hare Airport Hotel Accommodations: $159. Nova Scotia to Washington D.expedia.atoexpo. Attending All Things Organic Trade Show Airfare: $330.05 TOTAL: $500. Post-Purchase Thank You cards 10.Holiday Inn. Paul Jarvis. with 12 standard pages TOTAL: estimated between $12.com and http://www.00 TOTAL: $531. Outsource a Company To Set Up A Secure Shopping Cart On Web Server Five thousand Canadian dollars. October 15. Dulles Airport Hotel Accommodation: $159.00 (All estimates taken from http://expoeast. 2003) 3.C.00 .22 BUDGET FOR PROPOSED STRATEGIES 1. 3 nights.30 (All estimates taken from http://www. one-time fee for a company to set up a secure shopping cart system using 128 bit encryption as well as a system which allows Moonsnail Soapworks to easily update the site with new products.

95 400.575.00 20.80 15.00 20.00 0.00 298.30 1.20 -96.20 1.56 1.80 7.560.20 3.00 20.980.20 1.00 20.75 6.00 132.00 1.00 1.492.60 4.00 74.20 1.90 .999.90 80.228.00 1.00 28.80 17.70 1.085.470.004.00 1.00 1.00 9.065.08 947.00 1.00 1.00 3.88 1.55 1.373.68 1.038.00 1.326.63 77.40 218.136.00 65.00 1.60 422.00 154.00 2.00 852.00 65.492.00 5.88 21.989.00 15.75 25.40 1.20 2.00 0.23 FORECASTED FINANCIALS BY YEAR 2007 Revenue Retail sales Wholesale sales Mail order sales Consignment Miscellaneous Total Revenue Cost of Goods Sold Retail sales Wholesale sales Mail order sales Consignment Miscellaneous Total Gross Profit Operating Expenses Accounting and legal Advertising and promotion Automotive Bank charges and interest Gas Donations Shipping and postage Fees and memberships Market rental Shop rental Booth rental Insurance Hardware and supplies Equipment rental Office and general Repairs and maintenance Salaries and wages 1999 Optimistic % Optimistic Pessimistic % Pessimistic 47.00 -80.43 67.40 21.603.00 1.00 1.15 11.741.760.00 9.00 1.00 2.146.00 6.00 1.00 4.111.00 1.00 15.55 5.00 -80.089.010.00 21.75 21.20 1.30 0.00 175.00 925.15 485.85 175.920.40 3.00 1.00 1.00 1.20 4.00 793.40 1.00 811.20 1.20 19.18 7.930.20 1.022.00 1.171.20 1.357.50 121.600.00 1.35 947.904.00 661.00 852.00 1.109.20 1.221.950.923.00 0.18 121.00 1.158.60 1.55 1.741.00 11.43 0.00 1.00 9.04 973.00 146.475.80 0.00 1.00 38.00 24.464.256.055.859.439.100.00 1.510.25 210.300.00 20.601.00 110.300.00 5.40 1.256.00 4.00 1.40 1.95 10.464.20 1.20 2.00 1.00 14.20 187.219.357.960.751.20 61.80 1.603.00 9.00 12.593.00 156.10 100.30 811.00 1.100.20 1.00 6.00 1.651.960.27 1.00 1.63 1.

00 54.000.24 Telephone Meals Travel Depreciation Utilities Total Operating Expenses Net Income 1.40 1.000.696.00 1.268.00 2.00 30.369.20 1.00 1.00 5.00 1.20 1.00 1.00 3.292.210.46 1.60 140.00 1.20 2.00 140.23 1.521.226.989.00 1.785.39 16.215.434.69 .550.36 1.20 1.00 1.60 168.383.00 1.00 1.00 1.45 66.292.00 34.268.200.60 83.

body care products to our consumers and our rapid response time will be an outcome of our unified and fulfilling working environment. all organic.25 Appendix K COMPANY MISSION STATEMENT Moonsnail Soapworks will provide our targeted markets with a one of a kind handmade product from coastal Canada. We will provide unsurpassed. . We will continue to expand our product markets yet still maintain our island lifestyle and dedication to the natural environment.

Retaining the retail consumer shares at the current percentage of 58. Core Concepts of Management. Product quality: Producing high quality. New York: John Wiley and Sons Inc. store. (2004). trade shows and the P.26 Appendix L OPERATING OBJECTIVES  Profitability: Increase profit sales by 60% by three years time.9.E. an increase to $55. Market Share: Gaining an increased share of the Internet and catalog consumers to earn $40. 696 in 1999. while maintaining profit. Human Talent: Recruiting and maintaining a high quality workforce.070.. . Cost efficiency: Using all resources to their fullest capacity to minimize liabilities as much as possible. 87.000 catalog/internet revenue by 2007. organic. J.I. and handmade products for the benefit of the consumer Social Responsibility: Producing all goods with a conscious effort to conserve the environment to make a positive contribution to society. an increase of $38. concurrent with the company’s core values.      Source: Schermerhorn.513 of net income from $34.

27 Appendix M Insert store growth chart .

28 Insert exploded store growth chart .

29 Insert internet growth chart JOB DESCRIPTIONS FOR A GROWTH STRATEGY-PROJECTED 5 YEARS .

The Board governs Moonsnail by emphasizing strategic direction and values. operating plans. Accounting Assistant -Manages accounting functions and preparation of reports and statistics detailing financial results. budget. policies. and carry out this work. forecasts and reports on product and pricing trends. Usually requires a 4 year degree and 5-8 years relevant experience or equivalent. Directs and coordinates activities to achieve profit and return on capital. marketing budgets. etc. Oversees product/service development. Chief Executive Officer –CEO -Develops primary goals. Leads the organization towards objectives. May specialize in one or more functional accounting area such as accounts receivable. implements sales programs for the organization. Oversees financial and accounting system controls and standards and ensures timely financial and statistical reports for management and/or Board use. accounts payable. and sales objectives. Determines action plans to meet needs of stakeholders. May conduct cashier transactions or restock merchandise if needed. Directs sales force. marketing staff and/or distributors. accounting. budget.30 Board of Directors -Boards represents the organization's owners. Chief Financial Officer – CFO -Directs the overall financial plans and accounting practices of an organization. payroll. procedures and objectives for marketing and selling the organization's products and services. Oversees inside and/or outside sales representative or distributors. Typically requires a bachelors degree in accounting or business and 5-8 years relevant experience. Moonsnail Soapworks board of directors understands the work of governance and the need to plan. organize. May arrange special orders. Represents organization to financial community.Inside Sales -Provides customers with product or service information to assist them in determining appropriate merchandise to purchase. tax and audit activities of the organization and subsidiaries. . shareholders. pricing. major customers. Coordinates budgets. Provides marketing expertise to executive management team. delivery or installation. Sales Representative . Director of Marketing & Sales -Oversees development of policies. meets with and advises other executives and reviews results of business operations. Plans and is responsible for achieving overall sales objectives. stockholders for business entities and community stakeholders. Establishes and maintains accounting practices to ensure accurate and reliable data necessary for business operations. and short and long range objectives for the organization. Requires CPA or equivalent and 10 years relevant experience. Oversees handling of key accounts. This is the top finance and accounting position for the organization. and the public. General Sales Manager -Plans. Supervises professional and/or clerical accounting employees. Establishes organizational structure and delegate’s authority to subordinates. Implements these following Board of Directors' approval. Recommends additional products or services to meet customer needs. Usually requires 1 year experience with organizational products and services. The Board recognizes that the resources and values of Moonsnail are very important to the tradition of this company. Oversees treasury. organizes. Usually requires a 4 year degree and 8 or more years of relevant experience or equivalent. government agencies.

District Mangers report to the Regional Managers and inform them of the specific company information like the general health of all district stores. and maintain safe working conditions. sales and potential profits of all regional stores. strategies. Production and Quality Control Supervisor -Directs quality assurance program and ensures quality problems are identified and resolved. Usually the top manufacturing management position reporting to the top executive. Accountable for achievement of plant performance objectives and product quality. Could supervise safety support staff. Risk prevention areas include hazardous materials exposure. Plant Manager -Manages all operations processes. Determines user's needs. Meets compliance and reporting requirements of federal or state regulations. Evaluates systems. Webmaster Designs and implements internal and external web pages and applications. and goals and develops web pages that meet those needs. Maintains authority over budget and scheduling. Converts documents into HTML (Hypertext Markup Language) or other complex programming language. Usually requires an engineering or equivalent degree and 3 years quality control experience. Formulates and suggest work safety standards. Usually requires a 4 year degree in information systems and 5-6 years experience including 3 years internet/client server experience. accidents. evaluates products and technology and establishes quality control procedures. District Managers -Report to Regional managers. The District Managers keep in contact with the specific sales reps to keep track of approximate district sales. Typically requires 2-4 years IS and/or internet experience. or webmaster. including web developer. organizes. web administrator. web author. Manages database development. Oversees inspections and audits. Plans and is responsible for achieving overall internet sales objectives. Usually requires a 4 year degree plus 2-4 years relevant experience. facilities. Safety Manager -Directs organization's safety programs to protect employees and the company against harm. Web Site Manager Oversees the internet web site of the organization. and daily operations. and enforces procedures. District Managers are involved in the most recent occurrences within Moonsnail Soapworks next to the retail store employees. Oversees . and production work for one company plant. Monitors plant expenditures and budget. Maintains proper documentation and reports. fires. Participates in vendor evaluation. Regional General Managers (UK. or other unsafe conditions. or equivalent. Advises management on problem correction. implements internet sales programs for the organization. Manages utilization of equipment. Canada. or equivalent. and personnel to obtain maximum efficiency and meet performance objectives. and requires a 4 year degree plus 8-9 years relevant experience. Usually the top management position in the plant. and US) -Oversees the production. Controls significant manufacturing projects. analyzes data. web site design. technical programming. Internet Sales Manager Plans. Directs the activities of other web site staff. Evaluates subordinates. Investigates product quality problems and recommends changes or improvements.31 Manufacturing Director -Directs all manufacturing operations. Typical incumbent has a 4 year degree plus 10 or more years relevant experience. or equivalent.

forecasts and reports on product and pricing trends for online products. Usually requires some prior retail or cashiering experience. Usually requires a 4 year MIS degree and 5-8 years relevant experience or equivalent. recordkeeping forms. this position oversees the overall design of the website. Suggests improvements to distribution procedures. Distribution Manager Distributes vehicles to company drivers for use in transporting passengers or freight. delivery dates or service. Customer Service Manager Oversees the activities of Customer Service Representatives or sales order processing staff. Web Consultant Develops and provides content for the organization's web site. Responsible for overseeing quality customer service and efficient shipping operators. Performs as editor of the site's content and gathers and researches information. Usually requires a 4 year degree in English. or products. Handles and counts money. May also perform restocking duties. Designs graphics to enhance the look of the site. Shipping Manager Supervises the shipment or receipt of outgoing or incoming materials. or with customers about status of freight. Responsible for making improvements or enhancements. Might also schedule delivery or installation. Additionally. May communicate with drivers in transit. and type of use passengers or freight.32 online sales representative or distributors. company credit cards. Shipping Operators Receives incoming and ships outgoing materials. issues receipts. Studies shipping and receiving processes for effectiveness. Usually requires a minimum of 3 months relevant experience. Troubleshoots and resolves non-routine customer complaints. necessity of use. Graphic Design. Assists with merchandise restocking. operates cash register and reconciles cash drawer. Issues vehicles based on distance of trip. or Communications and 2-3 years experience in web page design and HTML. Internet Sales Manager Assistant Assists with internet sales objectives and Moonsnails online accounts. and acts to improve timeliness or reduce costs. Resolves major problems with orders. PEI Store Manager Provides customer assistance by itemizing and totaling purchases. Counts items received or shipped and checks against packing lists. Suggest other merchandise to fit strore requirements. Assigns keys. Journalism. Usually requires 2-4 months relevant experience. Coordinates budgets. Completes reports for management. Retail Sales Manager Provides assistance in selecting and purchasing merchandise. Usually the highest level shipping/receiving position requiring 3-6 years relevant experience. Usually requires a degree and 3-5 years relevant experience or equivalent. Prepares receiving or shipping reports and notes any shortages or damages. Documents leave and return times. Typical incumbent has less than 1 year relevant experience. recording any discrepancies. products. and freight documents to drivers. or supplies. and endpoint of travel. Develops customer service policies and procedures to ensure consistent customer service and satisfaction. Oversees handling of online key accounts. specific freight carried. Furnishes information about goods for sale. Collects payments if no cashier is available. parts. Documents shipping or receiving information. .

Appendix N BENCHMARKS . Generic Job Titles [On-line].com/description.salarysource. (1999). October 17. Cited 2003.33 Source: Salary Source.cfm. Available: http://www.

word of mouth is the best source for product and brand loyalty. such as name and shipping address. L. and computer needs. This way there is no confusion about writing down or remembering product numbers. Bean is through forming partnerships or sponsorships with an organization that has similar principles and ethical standards as Moonsnail. plant based. which is what a customer currently has to do to order online from Moonsnail. L.L. This feature will require a user name and password. are their main retail shoppers. One final way to learn from L. Moonsnail should follow this example since tourists to P. making shopping even faster and easier. and quantity (when applicable) will give the customer choices. and then the customer can be directly connected.L.L. L. and environmentally safe ingredients. Bean has few retail stores but they make those stores very exclusive and distinctive so customers who do get a chance to visit the store will remember their experience and return as shoppers. salon and beauty care. what they do. more customers will have a positive view in their mind when they think back upon their shopping experience. size. Discounts for members can also be offered. user friendly website filled with options and services for the customer. Bean One of our main objectives for Moonsnail Soapworks is to maintain the single retail store. Bean products. Moonsnail can promote these organizations on their website and visa versa to use them for publicity to market an audience already interested in these similar causes but perhaps not familiar with Moonsnail.I. To make online ordering a possibility. an increase in catalog distribution must be initiated. Aveda encourages customers to know that information. this is due to a well-known.L. Within this feature an option process of fragrances. private.L. Many consumers are unaware of what their personal products contain and what they are putting into or onto their bodies. . To aid in the online sales. On Aveda’s website every product has a list of key ingredients. L. Bean has a good strategy to increase their catalog circulation by utilizing their current catalog members’ resources. Aveda. Aveda Aveda provides an upscale line of salon and beauty products all with natural. Catalogs are then sent to these names.L. Bean is a company in which the majority of their profits come from online sales. There are many ways in which Moonsnail Soapworks can improve their online services to increase their Internet and mail orders through an easy to use website.E. and safely expand the company. L. and Hewlett Packard are all successful companies in the goods and services industry providing customers with clothing.L. Another service Moonsnail can provide is a ‘My Account Section’ for returning customers. efficiently. As we all know. By customizing their home store. Bean. whether it be at the store again or through the online ordering service. Current users are encouraged to provide the names and addresses of 10 family or friends whom they think might be interested in L. Personal information they chose will be kept and filled in for them every time they shop. First and foremost is making the ordering service easy.34 We chose three companies we believe have good standards and practices in specific areas which Moonsnail Soapworks should implement in order to effectively. These types of companies include wildlife or nature organizations and conservation or green energy causes. and friendly. This can be done by making each product a link taking it directly to a ‘shopping bag’ feature which would hold all the customers selections until they were done shopping. Moonsnail must secure their ordering site so customers may enter their credit card number without any hesitancy of the company’s privacy.

Welcome to L. or gift services.hp. the company should follow similar practices currently used by Hewlett Packard. There is also a glossary section of all the products used by their company with pictures and their basic information.com/hpinfo/globalcitizenship/environment/recycle/index .com. or exchanges.html. (2003). petroleumbased products do. all natural products.com. Available: http://www. and where Moonsnail gets these ingredients from would all be aspects customers are interested in knowing and would enhance their decision about using Moonsnail. Hewlett Packard To maintain Moonsnail’s respectful and conservative efforts towards the environment. they use this to their advantage. HP Environment: Product Return and Recycling. October 11. [OnLine]. it also helps in the conservation effort for the environment. Aveda doesn’t restrict their market audience or distribution just because they’re all natural. Not only would this idea be saving Moonsnail Soapworks money through supply costs. Old products or product cases. product guarantees. so we suggest they start out with a small recycling plan. 11.aveda. Cited: 2003. A product warning use and list of possible allergic reactions would also be beneficial to the customers. Hewlett Packard is also very accommodating to their customers’ needs by providing a toll free customer service number. consumers can feel proud about their purchases. such as laser jet printers or empty ink cartridges. . which may be a bit more expensive. October. Cited: 2003. Available:http://www. Helping support this theme of protecting the Earth is how the company catalogs and any other company information is printed and on what. [On-Line]. glass jars. what the ingredients are. (2003). can be sent back to Hewlett Packard to be recycled to make new products or be further refined to be used as raw materials. Cited: 2003. Customers can appreciate this feeling and sense they’re buying a safe and superior product. Many consumers are inclined to just buy the cheaper product when considering shampoos or make-up but by buying responsibly made. Explanations of how these natural products are better for your body. Once Moonsnail grows and their distribution is wide this would be an excellent benefit to the customers should they have any questions or concerns about their product.35 and how they are effective. This number could also handle questions about returns.L.llbean. Bean. The Moonbaby Bum Cream comes in 2 oz. Available:http://www. (2003). Learn about the natural ingredients Aveda uses in it’s products. Hewlett Packard. [On-Line]. Such an expansive project would be quite an undertaking at Moonsnail. If Moonsnail employs this idea it would show customers they’ve really made a smart choice. Moonsnail needs to get a message across that they have unique and special products which are not only excellent for your body but are also not harming the Earth like many of the cheaper. Bean. With Moonsnail Soapworks using only all natural ingredients they should be proud to display this information as well. Aveda uses 100% post-consumer paper printed with soy ink for all its printing needs. if customers mailed back their used jars they would be perfectly good to reuse for more cream. Sources: Aveda. L.L. October 13. thus decreasing the need for continual purchasing of glass jars by the company.

36 Appendix O MANAGEMENT PHILOSOPHY .

Jennifer and Marcus Ridgway Appendix P BOARD OF DIRECTORS . We will always have our customers. We believe our company can achieve and sustain financial success while behaving in a socially conscientious and environmentally responsible manner. our employees. We believe success lies within a combination of equally proportioned expansion and direction through our core values.37 As our company grows we will maintain the integrity and intentions we had when we were first incepted. We will continue to practice socially responsible actions while ensuring ethical behavior and remaining true to our mission. and the Earth in our minds and hearts. While growing. our company’s products and services will always stand for excellence.

Jakob Nielsen Dr. in user interface design/computer science from the Technical University of Denmark. majoring in MIS. Royer possesses advanced skills in multimedia-oriented software such as Adobe Premiere. Doug Fyfe Mr. . Nielsen is on the editorial board of Morgan Kaufmann Publishers’ book series in Interactive Technologies. Until 1998 he was a Sun Microsystems Distinguished Engineer. and has had 10 years of experience working in the shoe industry.A. Nielson is a User Advocate and co-founder of the Nielsen Norman Group.38 Chairman of the Board – Dr. and scale development. in Clothing and Textiles from Morehead State University and M. Dr. Nielsen earned a Ph. in Marketing from the University of South Florida. He has implemented e-marketing strategies and designed websites which developed the strategic goals of his clients. She is a General Business major which is preparing her for a broad basis in a business career. Orazen has skills in advertising. Dr. and Ph. mainly on ways of making the Internet easier to use.B. She is also knowledgeable in organization and the development of human relations. She is currently the Assistant Professor of Marketing at Ohio University. He has held a number of positions in the CTC and its predecessor organizations.S. Mr. and has served as chairperson for the Pacific Asia Travel Association and on the Executive Committee of the World Tourism Organization. Mr. Ms. Dr. Adobe Photoshop. small business entrepreneurship. Royer is a part-time web designer and a full-time student at Ohio University. Fyfe is currently the interim President and CEO of the Canadian Tourism Commission. Dr.A. Fyfe earned a B. Dawn Deeter Dr. in history from Carleton University and a Master’s in Education from the University of Ottawa. David Royer Mr.D. Dawn Deeter was appointed Chairman of the Board in September 2003. sales management and buyer-seller relationships. Dr. Orazen is a full-time student at Ohio University in the College of Business. Deeter specializes in customer service teams. and he holds 72 US patents. Patricia Orazen Ms.D. and production. Deeter earned her B. and Macromedia Flash.

Ms. She is knowledgeable in dealing with costs and creating budgeting plans for particular companies. and analyzes any opportunities or problems with the US market. Jessica Nunn Ms.39 Jessica Rex Ms. Nunn is an Accounting major in the College of Business at Ohio University. Ms. She has skills in planning needs for short and long term funds. as well as planning for profits. Nunn’s focus is also on internal control and working with management to develop effective cost structures. majoring in Finance and Marketing. Melanie Raese Ms. Raese handles all shipping and exchanges between the United States and Canada. . Rex is a full-time student at Ohio University. She monitors the exchange market and trading patterns between Canada and the United States. Ms. Rex is also knowledgeable in the analysis of marketing information and business marketing strategies. Raese is an International Business and Marketing major at Ohio University.

the true owners of the company. Responsibilities and Importance of the Board The main purpose of the Board of Directors of a company is to represent and serve the company’s shareholders who elect them. Advantages of a Corporation Similar to any other form of business. and decide when to issue shares or dividends. In order to not only effectively represent the company but also maintain the support of shareholders. shareholders actually own a percentage of the entire corporation. 2001). 2003). This stems from the idea that a corporation is legally an individual body in itself. unless a personal guarantee is provided (“217 Corporations…”. Board members meet to discuss the developments and strategic direction of proposed courses of action. “each director should have the ability to exercise sound business judgment (“Criteria for…”. framework. if a partnership is found guilty of an offense. there are certain advantages and disadvantages to incorporating a business. The most obvious advantage of a corporation is the absence of personal liability of the shareholders. Because of this. Through their shares. anyone who is involved in the management of the partnership can also be personally liable for the same offense and required to pay fines out of . a corporation is considered an independent entity separate from its shareholders.” Each state possesses the authority to declare its own laws regarding a corporation’s formation. 2003).40 Appendix Q IMPORTANCE OF BOARD OF DIRECTORS AND CORPORATIONS The Legal Information Institute of Cornell Law School defines a corporation as “a legal entity created through the laws of its state of incorporation (Cornell Legal…. “The process is an interactive on-going dialogue which provides the Directors with insight into the activities and direction of the Company’s businesses (“Strategic…”. a company’s Board of Directors is able to fulfill its responsibilities as a company’s decision-makers and as the shareholders’ representative. This is different from the policies of a sole proprietorship or a partnership because under such forms of business exists unlimited personal liability for those involved. and have the ability to elect the group of people with overall management responsibility – the Board of Directors. As Johnson & Johnson describes.” With directors exemplifying such characteristics. For example. directors should reflect certain characteristics:    Directors should be of high ethical character and share the company’s values Directors should be capable of offering advice and guidance based on his/her experience and knowledge As stated by Johnson & Johnson.” Directors also approve budgets and contracts. Under law. 2003). Throughout the year. the owners. and even its breakup. shareholders cannot be held responsible for corporate debts and obligations.

Ken keeps the first year’s net income of $75. and a stock ledger. Generally. stock certificates.000 in the business. 1995).” If dividends are distributed. an organizational board with provisions regarding management. Because of this. The deaths of shareholders or directors do not change the corporation or affect its existence. the business can grow and expand more easily. This is about $2. Inc. The income that the owners keep in a corporation (income that is not paid out in forms of salaries and bonuses) is taxed at corporate income tax rates. there is no limit on stock classes. the shareholders must pay personal income taxes on them. 2003). such businesses may have the ability to achieve the money needed for expansion with greater ease than other forms of business.41 their own pockets. a newly incorporated interior decorating business. Balanced Interiors pays $13. The complicated process involved in incorporating a business (more complicated than that of a sole proprietorship or partnership) is a second disadvantage.750 in corporate income taxes on this retained corporate income.746 individual income taxes Ken would have paid on the same net income if he took all of the income out of the business as salary (“Cut taxes…”. Income shifting is defined as “the ability to divide income between the corporation and its shareholders in a manner that lowers overall taxes (“Tax Advantages…”. bylaws to define the rights of people within the business. there are certain tax advantages to a corporation. From the idea of a corporation existing as a separate entity comes a second advantage for this form of business: it has perpetual life.000 of corporate income is taxed at a lower corporate rate than at an individual income tax rate. Even if the ownership of the business changes. not individual income tax rates. Registration and set-up fees are higher. the first $75. 2003). One such advantage is known as income shifting. Disadvantages of a Corporation One major disadvantage of a corporation is double taxation: “…individual shareholders typically are subject to two levels of taxation on corporate earnings. Corporations allow an unlimited number of shareholders. In addition. Finally. the corporation’s structure remains unaltered. cites this example: Ken owns and operates Balanced Interiors. In addition. dividends are actually taxed twice. it pays its own income taxes. or splitting.. Nolo. Therefore.” Because a corporation is a separate entity. a corporation can use salaries to decide how much income is taxed at the corporate or individual rates. living on savings that he accumulated (on which he has already paid taxes) prior to incorporating.000 less than the $15. resolutions. the first at the corporate level…and the second when the corporation distributes its earnings to its shareholders in the form of dividends (Meyers. Income shifting can be useful to a corporation. an online group that provides legal aid. the corporation is required to pay taxes on them. Therefore. but there are also many tax disadvantages to incorporating. . A third advantage to incorporating a business is that in this form. This allows shareholders with different desires as to their level of involvement in the corporation to achieve their respective wishes. and there are numerous documents that must be filed in order to form a corporation: articles of incorporation to record the creation of the corporation. because dividends are not tax-deductible.

Available: http://www. Cited 2003. (1995). to a limited liability corporation.edu/topics/corporations. October 14.legalline. and even. If situations change and those involved in a corporation wish to convert to a new structure.cfm. Cited 2003.html.cornell. Cited 2003. Legal Line. Corporations : An Overview [On-line]. Available: http://www. October 13. October 10.com/strategic.jnj. Meyers. Sources: Cornell Legal Information Institute. Available: http://www. Johnson and Johnson. . especially in conversion to a partnership. (2003). (2001). Johnson and Johnson. E. (2002).law. Strategic Planning Process at Johnson & Johnson [On-line]. the cost of changing to a different business form from a corporation is great. (2002).cfm.ca/business/217. “A Review of Federal Income Tax Criteria and Related Issues in the Entity Selection Process. perhaps. Available: http://www. Criteria for Nominations to the Board [On-line]. October 10.investor. 217 Corporations : Advantages & Disadvantages [On-line].html.jnj. Cited 2003.42 Finally.investor.” Journal of S Corporation Taxation 6(3). shareholders are required to take on the double taxation when the corporation is liquidated.com/governance/criteria. 246-250.

WITNESSETH: WHEREAS. Prince Edward Island as of the 1st day of November. and WHEREAS. skill. this Agreement. (f) the voluntary or involuntary termination of the Employer’s business. and David J. to render such services on behalf of the Employer as shall be determined from time to time by the Employer. and attention to the performance of testing for any possible harmful or dangerous reactions to Moonsnail’s 2. employ the Employee. 2003. Canada. The term of the employment of the Employee. the Employee is able and knowledgeable in product safety testing and desires to become employed by the Employer upon the terms and conditions set forth in this Agreement. a company organized under and existing by virtue of the laws of the Province of Prince Edward Island (hereinafter referred to as the “Employer”). (d) immediately upon the final determination of the disqualification of the Employee to test personal care products in the Province of Prince Edward Island.43 Appendix R EMPLOYMENT AGREEMENT THIS AGREEMENT(“Agreement”). THEREFORE. . is by and between Moonsnail Soapworks. 2003 and shall continue thereafter until the first to occur of any of the following events: (a) upon thirty (30) days notice by the Employer. (e) immediately by the Employer in the event of the substantial violation by the Employee of any covenant set forth in this Agreement or the failure or refusal of the Employee to perform any obligation of the Employee set forth in. The Employer shall. shall commence November 1. Myers. 3. EMPLOYMENT. the Employer is an independent agency for the sale of all natural. accept employment with the Employer. the Employer desires to engage in the testing of product safety with regards to human contact. personal care items. (c) the mutual concurrence of the Employer and the Employee. in consideration of the premises and the mutual promises and covenants hereinafter set forth. The Employee shall devote the Employee’s full time. and WHEREAS. NOW. (g) immediately by the Employee in the event of the substantial violation by the Employer of any covenant set forth in this Agreement of the failure or refusal of the Employer to perform and obligation of the Employer set forth in this Agreement. and does hereby. TERM. DUTIES. or imposed upon the Employee by the Employer pursuant to. (b) upon fourteen (14) days notice by the Employee. an individual resident of the Province of Prince Edward Island (hereinafter referred to as the “Employee”). the Employer and the Employee agree as follows: 1. and the Employee shall. and does hereby. and the Agreement. made and entered into at Charlottetown.

Nova Scotia. as a professional product tester. The Employee shall be entitled to vacation. all as shall be designated by the Employer. (a) During the term of this Agreement and for two (2) years immediately following the date of the termination of this Agreement within the geographic area comprised of Prince Edward Island. compensation at the rate of $50. 5. Employer shall reimburse Employee for all necessary expenses incurred by Employee while traveling pursuant to Employer’s directions.44 products. The Employee while employed at Moonsnail Soapworks shall not engage in any other business pursuit which may be competitive with the business of the Employer without the prior written consent of the Employer. Any such absence shall be allowable upon reasonable prior notice to the Employer to insure that the business and operations of the Employer shall not suffer thereby. and New Brunswick. COMPENSATION. and Employee shall accept from Employer. . personal leaves of absence and/or days away from the office for such continuing education as the Employer shall deem to be appropriate. 6. Notwithstanding the foregoing. payable twice a month on the 7th and 21st days of each month while this Agreement shall be in force. in full payment for Employee’s services under this agreement. and shall not directly or indirectly be interested in any business competing with. company. Employer shall pay Employee.000 per annum. 7.1 Exclusivity. company. or similar in nature to. will probably work more than forty (40) hours per week for the Employer. The Employee shall also devote such additional time as shall be required of the Employee for the performance of services incident to the Employee’s position with the Employer. TIME COMMITMENT. During the term of this Agreement. the parties agree that the Employee shall always comport himself as a full-time employee.2 Covenant Not to Compete. or other entity engaged in the same business as the Employer or that performs services related to product testing. all in accordance with the Employee’s time commitment set forth in Section 4 of this Agreement. RESTRICTIVE COVENANT: 7. All vacation and/or personal time shall be taken upon reasonable prior notice and at such time and manner as shall be mutually satisfactory to the Employer and the Employee. firm. The Employer reserves the right to revise the Employee’s compensation in the event that the Employee shall abuse the vacation and personal leave provisions of the Agreement or otherwise fail to fulfill the Employee’s time commitment set forth in Section 4 of this Agreement. Proper performance of the Employee’s duties under this Agreement shall require a minimum of five (5) full workdays per week. (i) The Employee shall not canvass. and business from any client (as herein defined) for himself or for any other person. and that during some weeks the time commitment may be less. firm. or organization. VACATION. the Employer and Employee recognize that the Employee. the business of the Employer. solicit. 4. the Employee shall not perform any services or work similar to that performed for the Employer pursuant to this Agreement for any other person. In either event. 7. but subject always to the demands of the business as determined by the Employer.

. 8. The Employee acknowledges that the identities of the Employer’s clients and prospective clients. the business of the Employer. constitute a valuable. curtail.45 (ii) The Employee shall not give or cause to be given to any other person. and then only within the strict bounds of such consent. records. and any list thereof as may exist from time to time. (iv) The Employee shall not engage in any other business pursuit which may be competitive with the business of the Employer without the prior written consent of the Employer. (iii) The Employee shall not directly or indirectly request or advise any past. but not limited to. 9. FILES. The Employee shall not execute documents in the name of the Employer or on behalf of the Employer. Nothing in the Agreement shall be construed as prohibiting the Employer from pursuing other remedies available to the Employer for such disclosure including. present or future client of the Employer to withdraw. or other entity engaged in the same business as the Employer or that performs services related to personal care products the right to canvass. special and unique asset of the Employer. firm. In the event of any breach or threatened breach by the Employee of this provisions of this Section of this Agreement. The Employee shall not. policies. CONFIDENTIALITY. The Employee is not authorized to incur debt or other obligations on behalf of the Employer. firm. firm. company. All files. association or other entity to whom such client identities or any portion of any such client list or any of the other foregoing information has been disclosed or is threatened to be disclosed. All originals and copies of the above-stated items shall be turned over to the Employer within twenty-four (24) hours of the expiration of this Agreement or the termination of this Agreement by either party. or cancel such client’s business with the Employer. solicit. association or other entity for any reason or purpose whatsoever. attempt to solicit or accept any product testing business from any client of the Employer. A complete copy of each binder so issued shall be delivered to the Employer on the day of its execution or before the effective date under the binder. corporation. The Employee may issue binders for coverage authorized under the Employer’s contract limits with the Employer’s carriers. at any time during or after the term of this Agreement. corporation. alter. or similar in nature to. disclose or use for the Employee’s own benefit the identity or identities of any of the Employer’s clients or prospective clients or any portion of any such list of the Employer’s clients and perspective clients to any person. and shall not directly or indirectly be interested in any business competing with. No copies or facsimiles may be made or possessed by the Employee without the express written consent of the Employer. LIMITED AUTHORITY OF THE EMPLOYEE. the Employer shall be entitled to injunctive relief restraining the Employee from disclosing any such client identities or any portion of any such client list or any of the other foregoing information about the Employer’s clients and prospective clients or form rendering any services to any person. the recovery of damages from the Employee. 10. documents and other information and their contents relating to the Employee’s employment pursuant to this Agreement shall remain forever the property of the Employer.

legal representatives and their successors and assigns. but rather. and construed in accordance with. the same shall be enforced to the fullest extent. Further. postage prepaid. PE Canada C2B 2B7 The Employer and the Employee may each change the address to which notices shall be given to them. 17. and addressed as follows: To the Employer: Moonsnail Soapworks 87A Water Street Charlottetown. David J. then. the remainder of this Agreement and the application of such provision to other persons or circumstances shall not be affected thereby. GOVERNING LAW. the Employer may. registered or certified mail. nevertheless. This Agreement shall be governed by. TITLES. 13. Employer does reserve the right to assign this contract. NOTICE. shall for any reason and to any extent be invalid or unenforceable. the Employer and the Employee and their respective heirs. nor may any duties hereunder be delegated by Employee. This Agreement shall be binding upon. and based upon performance after two (2) years. executors. 15. BINDING EFFECT. PE Canada C1A 1A5 To the Employee: Mr. and the same shall not affect the interpretation of any provision of this Agreement.46 11. 16. or the application thereof to any person or circumstance. SEVERABILITY. permitted by law. as the case may be NO ASSIGNMENT. administrators. In the event that any provision of this Agreement. 14. During the term of this Agreement. without prior written consent of the Employer. . and shall inure to the benefit of. Neither this Agreement nor any rights hereunder may be assigned by Employee. modify the Employee’s salary. All notices permitted or required to be given pursuant to this Agreement shall be in writing and shall be deemed to have been given at the time when the same are either hand-delivered to the Employee or to the president of the Employer or deposited with the Postal Service. 12. PERIODICE EVALUATION. Charlottetown. review and evaluate the Employee’s performance. in its sole discretion. but such change shall become effective only upon receipt of notice thereof by the other party to this Agreement. or to the fullest lesser extent. Myers 1234 Ridge Rd. The headings and captions set forth in this Agreement are for convenience or reference only. the laws of the Province of Prince Edward Island.

We are an equal opportunity employment. and the Employee has executed this Agreement. religious affiliation. covenants or conditions hereof shall not be deemed a waiver of such term. or any other possible diversity factors. Should any litigation or arbitration occur it will be settled in any legal court entity on the province of Prince Edward Island. Appendix S WEBSITE USABILITY . No employee or potential employee will be discriminated based upon gender. nor shall any waiver or relinquishment of any right or power under this Agreement at any time be deemed a waiver or relinquishment of such right or power at any other time.47 18. Cited: 2003. CHOICE OF FORUM. 20. abiding by all province employee codes and regulations. MOONSNAIL SOAPWORKS BY:____________________________________ “Employer” _____________________________________ David J. sexual orientation. October 18. DISCRIMINATION. IN WITNESS WHEREOF. The failure by either party to this Agreement to insist upon strict compliance with any of the terms. race.(1999) Employment Agreement. 19. WAIVER. Inc. the Employer has caused this Agreement to be executed by its duly appointed officers. as of the day and year first above written. ethnicity. Myers “Employee” Source: Althans Insurance Agency. covenant or condition.

Orphan pages are common in many websites and are pages where the user is not sure where the page fits in the infrastructure of the website. It is important to us that it is easy for the user to be able to return to the home page. How Our Site Benefits From Use Of Meta Tags Another feature which makes the website an asset is the fact that we use meta-tags to enhance our site’s usability and its ability to be found on the web. In our site on multiple occasions we reach out to these people talking about the advantages of our small business ways in comparison to huge corporations. it’s important to also make a site that is professional looking enough that people feel safe buying from it. 1996). due to our table layout it is not completely liquid it is much more so then an image map website. Thus we had to try to develop a site that fit in the middle of this spectrum. 2002). This is important so that the user knows where they are relative to the site’s hierarchy and are able to link back to other relevant pages. Although we want our site to give the feel of a small business that cares about the environment. Also you notice when in a section such as mission statement. Another perk of having an html based page is that it is at least somewhat liquid. This is important so people can view fonts in the size they wish to view them which is important in web usability (Nielsen. By putting meta tags in the head of our webpage it allows web browser based search engines to see keywords of our site as well as a description. We also state on enough times about how we care about nature to assure them that they are buying from a company who cares. All of the steps above make the site easier to navigate and they also eliminate the danger of orphan pages (Nielson. alerting the user that that is the section where he or she is currently located. If the entire page was an image file made in Photoshop a user changing the text size in their browser would not affect the page at all. its link on the left bar remains a shade of grey and is no longer a rollover image. These are some ways that using HTML helps elevate our site above those using image maps to create their layout.48 How Our Site Benefited From Using HTML First of all. In that same thought process you will notice underneath our top left logo there is the path where the page is relative to the site map. Appendix T NIELSEN SCORECARD . Another advantage is we allow our users to control font size because our bodies of text are not images or controlled by html tags. with feelings of a small all natural business that is still professional enough to make customers feel safe giving your credit card number to them. How We Targeted Our Market Using Our Website As a company who prides themselves on their environmental ethics and handmade goodness we knew that the psychographic of our target market are people who care about nature and are not huge fans of big business. it is important to put your name and logo on every page and link it back to your home page and as you notice on our site the logo does just that. Although. using html instead of one big image map of our page is significantly smaller then an image map version of itself. How Our Site Benefited From Allowing The User To Understand Infrastructure According to Nielsen’s Ten Good Deeds In Web Design from 1999.

49 Name: Website: Group 6 Moonsnail – Original and Redesigned Category Website Feature About the company Ads Animation Auto-playing music Contact information Graphics/Illustrations Help Help placement Job openings Privacy policy Routing page Search Sign-in Sitemap link Splash page Download time Footer navigation links Navigation Type of search Width of search box notes good 3 max bad bad contact us 5-15% if necessary upper right good good bad good if necessary good bad fast good good simple 25-30 Content Functionality Points Availabl e 3 2 2 3 2 1 1 2 2 3 2 3 1 2 3 3 1 2 2 2 Original Site 1 1 2 3 2 1 1 1 0 0 2 0 0 0 3 3 1 2 0 0 Redesign 3 1 2 3 2 1 1 1 0 3 2 3 1 2 3 3 1 2 2 2 .

4 Redesign 2 2 2 2 2 1 3 1 1 3 2 2 3 2 2 2 2 3 2 2 79 92.9 Layout TOTAL PERCENTAGE . visited links Link colors. unvisited links Link color. different for visited and unvisited links Link underlining Liquid versus frozen layout Logo placement Logo size Name of privacy link Page length Page width Search box color Search button Search placement notes good white or light dark readable bad sans-serif bad blue purple good good unless a button liquid upper left 80 x 68 Privacy policy 1 or 2 screens 770 to 1024 white search or go upper 85 100 Points Availabl e 2 2 2 1 3 1 3 2 1 3 2 2 3 2 2 2 2 3 2 3 85 100 Original Site 1 2 2 2 3 0 3 1 1 1 2 2 3 2 1 2 2 0 0 0 53 62.50 Category Website Feature About link Background color Body text color Body text size Body text size frozen Body text typeface Frames Link color.

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