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NatureCare Products

Marketing Plan Briefing Report

Introduction

NatureCare is an Australian based skin care manufacturer that produces high quality products that
caters to premium customers. The below report is the marketing plan developed for NatureCare to
penetrate into foreign markets and increase the customer base in Australia. A detailed understanding of
the market is developed using Five Factor analysis and studying the economic, regulatory and
sociocultural forces that impact the market. The target market is identified and SWOT analysis is used
to draw knowledge on the various aspects of NatureCare. Based on the results and the marketing
objectives proposed by the company, marketing opportunities have been identified and strategies to
achieve the same are designed. The marketing plan section provides a list of tasks and the timeline to
perform the same, also allocating budgets to each of the task

Market overview

Cosmetic and health care industry are one of the most competitive markets. With the advancement in
technology, researching for new products and combinations has become much easier and hence skin
care products are being developed at a much quicker pace. The below is the five force analysis of the
industry.

1. Rivalry among existing firms: The skin care industry has several established brands that take up
major market share. In case of NatureCare Jurilique and Botani are the significant competitors.

2. Threats of new entrants: Skin care industry is an extremely profitable market when the right product
is introduced and the right time. This makes the industry a lucrative market for any business that is
planning to diversify its products. However, brand value plays a key role in growing in this market,
especially since the products directly influence the health of the consumer. Also, the technology used
for manufacturing skin products are patented by the major cosmetic companies and coming up with a
new technology is challenging for new entrants. NatureCare is a well-established brand in its vicinity
and produces products that are specific to skin types. Hence the threat of new entrants is relatively low.

3. Threats of substitutes: Skin care products have a large number of substitutes and they are usually
replaced due to the chemicals used in the manufacturing these products. The world today is moving on
to organic and nature based products and hence NatureCare is at advantage, since all the products of
NatureCare are eco-friendly and made with natural ingredients. Also, replacing a product that has a
high brand value is difficult even for low price substitutes.

4. Determinants of Buyer Power: NatureCare products are priced high and caters to customers who are
less price-sensitive and prioritize quality of the product. However, the customers who are used to such
products do not easily shift to low quality products . As long as the quality of the skin care products at
NatureCare are maintained the bargaining power of buyers is significantly low. The only threat is in the
case of a new product from a well branded company at a lower price is introduced in the market, which
is highly unlikely given that NatureCare has different products for different skin types.

5. Determinants of Supplier Power: Since NatureCare manufactures its own products and the raw
materials used for production are ecofriendly and natural, the influence of a supplier is less

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Current customer profile

Once the market is understood and analysed the next key step is to identify whom we intend to sell the
products to. The target market for NatureCare products is currently professional women in Australia
who buy products at the online stores and the retail stores. The second target is overseas, especially
Japan where the company intends to sell the same products to the same consumer sector

SWOT analysis

Strengths Weaknesses
 High Quality Products  High price
 Eco friendly and Natural raw materials  Products restricted to women
are used for manufacturing  Few products as the products are
 High Brand value specific to skin types
 Has stores both online and retail  Huge competition due to low price
 Products developed for specific skin products
needs

Opportunities
 Entry into men’s segment
 Overseas business
 Development of new products such as
sunscreen, face wash and face packs
Threats
 Fierce marketing from other reputed
brands
 Introduction of products that are cheap
and still provide acceptable quality

PESTLE Analysis

On the political side, the government set VAT applied to all the personal care products of Nature Care.
The brand policy, on the other hand, states that they do not test animals except when required by law.
From social side, the company is identified as strongest engagement with the customers amongst the
cosmetic brands. Aside from that, the products are sold more on the market with the help of social
networking technologies such as Facebook and Twitter. The organization needs to set the price of
goods according to the economic income of the country so that the people can afford it so that they can
achieve organizational objectives.

Marketing opportunities

New Product

The company NatureCare currently has a wide customer base in Australia that comprises majorly
middle age and older women. The company has a brand value in Australia and hence to meet the
marketing objectives the company would have to introduce a new product that appeals the younger
generation, especially the age group of 21 to 25 while sustaining the existing customer base. The

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company can come up with a face wash that has a tan removal technology and provides a refreshing
look. NatureCare already produces cleansing creams and scrubs and hence a face wash would act as
a complete set. The face wash can be purchased as a sole piece or can be bought in a package that
comprises of the scrub, cleansing cream and face wash. Customers who use the first two products
would automatically prefer buying a compact kit of all the three products thereby increasing the sales of
the new product along with the scrub and cleansing cream.

The risk here is that the face wash may not penetrate the market efficiently as there are several other
well named brands producing face washes. However, the existing customers would encourage the sale
of the product given that they have already experienced the quality of several other products introduced
by the company. Aggressive marketing would be required to attract new customers. If the product
succeeds the product would generate revenue equal to that of the scrub product

Overseas Business

NatureCare has been confined to Australia and has gained tremendous reputation by producing high
quality skin care products. The best way to do the same is to test the market by forming a joint venture
with a popular skin care retail shop overseas for six months and understanding if the products suit the
marketing needs of Japan. Depending on the sales, the company can then enter into the market
overseas. Joint Ventures can be risky and hence a detailed understanding of the other company has to
be undertaken . Also, the venture has to be short termed, so that the company may establish retail
outlets overseas once the testing period is completed. Marketing overseas would be extremely
profitable if the testing succeeds and marketing is done based on the preferences of the foreign
clientele .

Marketing Strategies and tactics

Understanding the product mix would be beneficial when developing a marketing strategy and relevant
tactics for a product.

Addressing the 4 P’s

Product: All the products of NatureCare are tangible and how they work can be clearly observed. The
premium quality of the product is an advantage and since its address to specific need of the customer,
the customer would find it difficult to replace the same. The product is eco-friendly and natural making
the product more suitable for regular usage

Price: Due to the premium quality of the products the price is on the higher end. The value of the
product is reflected in the price and hence caters to high end customers.

Place: The products of NatureCare are currently available in Australia through their online stores and
retail stores and a plan to introduce the product to foreign market is in progress.

Promotion: The quality of the product helps in easy promotion of the product. However, the price of the
product restricts the same. Aggressive marketing would be required especially for a new product
developed to ensure that the customer base increases .

Introduction of new product

A new face wash that comes in two variants for dry to normal skin and normal to oily skin has to be
designed with a tan removal feature suitable for all age groups. Formula for this product will be close to
the formula used in the cleansing cream and the scrub developed by NatureCare. The product would be
initially sold as a trial piece for free when any two products of NatureCare are purchased. The trail tubes
will be small samples that can be used for five washes. The trial period will run for a month post which
the product would be available as a self-product in varied weights and also with the new skin care kit
comprising of the face wash, cleansing cream and scrub.

Advertising on social media

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Advertising on YouTube is one of the most efficient ways to reach a large clientele. Commonly watched
videos such as prominent trailers or entertainment clippings should be chosen and a simple 15 second
ad of one or all the products have to be run on the video. The number of viewers would substantially
increase.

Marketing strategies

The marketing mix of Nature Care consists of 4Ps such as product, place, price and promotion. The
marketing mix is significant as it helps the organizations to promote their products to the customer as
well as increase brand awareness. A good quality product increases the client satisfaction level
.Consequently, brand awareness increases. Moreover, the personal care products are most needed by
the people who dwells in city areas. Therefore, a campaign should be made in such places where there
are lots of skin and hair problems. Saloons and spa use these products to take care of their customers
regarding skin and hair. The price should be set reasonably so that the clients can afford to buy.

In order to implement successful marketing strategies, the management of NatureCare needs to recruit
efficient staffs who will be properly awarded about their roles and responsibility. Besides that, the
management of NatureCare should reduce the price of products which is an effective marketing
strategy included in marketing plan. Apart from that, according to the timeline, required marketing
tactics should be implemented through proper monitoring mechanisms and coordination. In order to
implement marketing tactics successfully, the management of NatureCare needs to focus on available
budget and staff. In other words, the management also spends efficient funds for the implementation of
marketing tactics to achieve its goals and objectives. Regarding legal and ethical issues, the
management should test their products before launching in the market. As well as, the customers
should not wrongly address by management about a specific product .

The marketing performance will be influenced by various types of marketing objectives which include a
description of marketing metrics. While, the marketing objectives includes many significant aspects
such as, customer requirement, rival company’s strategy and current market condition which measure
organizational performance by achieving goals and objectives .

According to the SWOT analysis, PESTLE analysis and marketing 4P’s which are discussed in this
report, a new skin related beauty product such as body lotion is required by most of the customers. So,
a confirmed approval of CEO is required to develop the marketing plan which increase the profit of the
organization to achieve its goals and objectives.

Two marketing opportunities are that increasing demand of body lotion and available products are too
expensive. The recommended marketing strategy and tactics are that the management should provide
desired beauty products at a reasonable price to the customers. In order to measure marketing
performance, the appropriate approach needs to be undertaken by the management. For example,
each and every customer needs to be awarded properly about the skin products of NatureCare. On the
other hand, the management of NatureCare should collect the feedback from their customers as
documented in the report to achieve organizational goals.

In order to explain the marketing strategies to team members, effective communication is playing an
essential role. Besides that, the team leader needs effective communication skills to elaborate his/her
ideas clearly and concisely. Sometimes, team members ask questions regarding marketing strategy,
so, the team leader must find out the point of view of the team. In addition, with the help of member’s
suggestion and opinion, the team performance can be evaluated. Although, the team leader must reply
to the questions which may be asked by his/her team members about marketing strategy to confirm and
clarify information. Each and every segment of marketing plan helps the organization to achieve its
goals and objectives by meeting customer’s demand.

Marketing tactics

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Marketing tactic Rationale Monitoring Person in timeframe

mechanism charge
The company It is important to The number of Marketing 10 days
would have to design this adds ads that will be manage
design 15 second in order to let developed to
ads for YouTube customers know cover 15 seconds
in the first 10 the new products of YouTube
days with the help that NatureCare propaganda.
of the marketing aims to offer
assistant within the new
marketing plan
The operations It is a must to The gathering of Operation 1 week
manager would meet legal all documentation manager
have to complete requirements will show that this
the legal before posting the task has been
proceedings for ads in YouTube. done properly.
publishing the ads
The CEO and It is important to This tactic will be The CEO and 6 months
Operations publish the considered Operation
Manager would contain of the a successfully when manager
then get the new new face wash in the company
face wash order to call a finds the venture .
developed within venture that
the first 6 months wants to
of the annual year purchase the
while they also products.
find a firm and
develop a joint
venture to sell
their products
overseas.
Once the product Customers have If a high number Marketing 2 months
is developed the the last word in of customers manager and
sales manager this process, if respond positively Operational
along with his customers are to the new manager
team would be happy with new product, this
responsible to products, then the indicator will be
encourage company can taken as a good
customers in continue to sell result.
trying out the new the products.
face wash and
the complete kit
and the marketing
assistant would
come up with new
ads for the face
wash

Marketing performance

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Basically, marketing performance will be measured against marketing objectives by evaluating the
number of clients that purchase new products. furthermore, the company will assess if the profit has
increased after one year of applying the marketing plan. The marketing metrics is the number of clients
gained per month, the percentage of profit increased after one year. It is important to evaluate the
performance of the plan in order to determine whether the plan works or not and if not, find ways to
improve and correct negative points.

Strategies to increase organizational expertise or resources to address gaps in currently

capability and marketing objectives

The following are strategies that can help NatureCare to improve gaps in currently capability and
marketing objectives:

1. Engage Your People.

Employee engagement is one of the most written and talked about issues today in business. By now
the Gallup survey is familiar to all of us and efforts to better understand and to build engagement are
under way in many companies. Following are examples of key actions to enable your people to engage
to feel passion about the work they do, deliver their best performance and to strengthen their
commitment.

 Build a strong understanding of your business strategy throughout your workforce. Ensure
everyone can answer the following questions: 1) Why do customers buy from us? 2) Who are
our key competitors and why do their customers buy from them? 3) How do I contribute to our
unique differentiation?
 Build trust. Employees need to know that their managers and executives care about them as
people as well as being committed to their success.
 Make certain each employee is using his preferred skills and has an effective degree of
autonomy.
 Focus each department on improving its procedures and targeting its activities on better-
achieving the company’s competitive differentiation through what people do and how they do it.

2. Leverage high-impact leadership practices.

Communication is king in today’s organizations. It’s one of the biggest challenges leaders have, and is
probably a weakness for many companies. Communicate clearly in simple language, creatively,
interactively, daily about core business subjects, such as:

 Departmental and organization performance targets, progress, obstacles and solutions

 Stories about competitors and customer successes i.e. from Sales and Customer Service
 Current organizational initiatives

3. Identify and Remove Internal Roadblocks

How well aligned with your competitive differentiation strategy are your company’s policies, procedures
and structure? Look for indicators of misalignment such as:

 Do people need to work around policies and work procedures to get things done?
 Do your policies and work procedures enable people to get the right things done quickly?
 How are relationships between functions, i.e. manufacturing and sales? Are conflicts and
frustrations routine?

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4. Align Your Metrics.

To have meaning, the metrics people focus on need to be understood by them to be within their
influence.

 Your metrics can provide great value when they serve as a guide to decision making and
prioritizing work.
 Non-financial metrics that relate directly to your competitive differentiation can help keep
everyone aligned in a similar strategic direction.
 Explaining how metrics are chosen and measured and tailoring to each department can enable
people to understand how they each make a difference in the company’s performance.

5. Use Training and Development Strategically.

Many organizations have a workforce that is approaching or past traditional retirement age. In addition,
low engagement levels may lead to increased turnover as more job opportunities become available to
people. Do you have training in place to enable people to perform essential work as employees leave or
retire? Does your training effort prepare the organization with skills for the future?

 Develop a workforce plan to ensure hiring is done in time to develop people.

 All employees should receive training that is current-day and future-focused.
 Develop career-paths for people to progress to roles that will be needed in the future. Know
your people and what their goals are for the future. Support them in channeling their paths to
the future within your company.

6. Focus on your business strategy; you can’t please every market.

Authors and experts acknowledge three types of value propositions or competitive differentiation
strategies in business. The rule of thumb is still to do a good job on all but to choose one single area
where your company can and does excel. The three types are:

 Customer Intimacy – providing customization to meet each customer’s individual needs,

providing outstanding customer experiences, and building strong, long-term customer
relationships
 Operational Efficiency – providing a universal set of products and services designed to be cost
effective for customers. This is not competing on price as much as it is providing value to
customers that saves them money; do your products make customer processes more efficient
i.e. reduce down-time, improve quality?
 Leading Edge – providing new, innovative products and services based on the latest
technologies and practices. This depends on having a strong research function with frequent
introductions of new and improved products and services that are both different and effectively
meet customer needs.

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