Embed or link this publication
Description
An Honors Thesis Presented in Partial Fulfillment
Of Honors College Graduation Requirements
(W.P. Carey School of Business, Department of Marketing)
Popular Pages
p. 1
a stategic marketing plan for zona verde cosmetics by edward appleyard and elise milam an honors thesis presented in partial fulfillment of honors college graduation requirements w.p carey school of business department of marketing arizona state university may 2010[close]
p. 2
appleyard and milam 2 a stategic marketing plan for zona verde cosmetics by edward appleyard and elise milam has been approved april 2010 approved printed name signature first reader second reader third reader honors thesis committee accepted dean the barrett honors college[close]
p. 5
appleyard and milam 5 executive summary zona verde cosmetics is still in its introductory stage of the product life cycle in the united states to propel zona verde to the next stage of development growth a cohesive marketing strategy has been created it starts with framing zona verde s internal company culture and reason for being in other words its mission statement without purpose the company can lose sight of its intention to serve consumers with natural skincare products that improve one s overall health and appearance this paper provides three mission statement alternatives zona verde could adopt to clarify its purpose as a company and articulate its vision of being a premium brand in the female-oriented skincare industry the proposed positioning statement helps bring focus to the company s vision by targeting youthful women however creating a strategic marketing plan requires selecting at least one target market to concentrate on and this plan of action is centralized around college women who attend asu s tempe campus since this consumer base is local and easily accessible to effectively create products that college women desire and are both willing and able to buy more research needs to be conducted to identify the characteristics this consumer group demands in skincare products such attributes could include additives that help reduce the dark circles students develop under their eyes from sleep deprivation or stress relieving additives such as lavender oil in the interim zona verde can continue to improve its product line based on consumers feedback thus far in canada and via free samples of the products the company can also learn from competing product lines that target the same consumer group with similar products such as hempz and pangea organics these competitors fortify their products with natural essential oils derived from plants herbal extracts vitamins and other ingredients with[close]
p. 6
appleyard and milam healthful chemical properties such as almond oil birch bark extract vitamins a c and e and beeswax reformulating zona verde products to incorporate more natural and beneficial additives would help make the products unique and differentiate them from others in the marketplace see appendix h for a list natural additive options other suggested changes to the products include adding an spf factor to the day cream and more pleasant fragrances to each 6 product in the future perhaps additional aromas could be created for the most popular products redesigning the product packaging to emphasize zona verde s unique selling points and benefits might boost sales too depicting a larger and darker hemp leaf would help consumers register this product as natural or green and better enable them to quickly identify zona verde s product category natural skincare products utilizing more recyclable packaging such as high-density polyethylene #2 plastic would help convey this eco-friendly product message too as this type of material can be recycled and is the least likely of plastics to leak toxins into the encompassing product formulas when exposed to sunlight sun-proof containers would help eliminate this affect by protecting the delicate preservative-free formulas and this paper provides two packaging suppliers contacts to help make this happen in addition the company is already aware the labels need to be re-colored as their transparency renders the text copy unreadable possibly incorporating beauty tips or ceo earl miller s pearls of wisdom for healthy living on the packaging would help strengthen the product line s personality and positive brand image as for function flip caps are already being added on to certain products instead of the twist-off cap features currently offered most importantly zona verde should focus on providing a comprehensive skincare line before entering other beauty industries such as haircare and suncare this means investing in new product developments such as a facial cleanser or exfoliating body scrub.[close]
p. 7
appleyard and milam although zona verde s prices are fixed to ensure distributors and retailers profit the 7 price comparison chart on page 53 reveals zona verde is slightly more expensive than hempz this could prove problematic if these two brands are sold in the same store and if zona verde is not differentiated enough higher prices could be appropriate if zona verde possesses a higher quality to hempz nevertheless it is important for zona verde to distinguish itself by placing its products in stores its direct competitor hempz is not carried in and where college females currently shop bookstores near campus local beauty boutiques and nearby malls are all logical locations see appendix p for a list of potential beauty boutique retailers near the asu campus since the company would like to sell the majority of its products through its website however effective promotion efforts need to be implemented to spread brand awareness among female students setting up an information booth and giving out product samples to students on asu s campus is a cost effective advertising method see appendix m for the projected cost of a promotion booth in fact this would only cost a total of $3,100 and enable the company to use the same portable booth to promote on multiple campuses for only $148 a focus group could be conducted on campus as well to conduct research on the likes and dislikes of the target market see appendix n for the projected cost analysis of a campus focus group gaining exposure through social media outlets is perhaps the most cost efficient promotional tool zona verde could utilize online networking is easier and more popular than ever among college students therefore designing a facebook and twitter page could help advertise the products to these consumers see appendix o for a mock facebook page layout a commercial on youtube.com is another economical way to advertise online especially if it is funny and entertaining to watch.[close]
p. 8
appleyard and milam 8 zona verde could even hold a contest for students to participate in where the students who create and submit the best commercial win a reward these are a few creative ways to introduce and involve female asu students in the introduction creation selling advertising and promotion of zona verde products more importantly they are cost efficient methods of promoting the products to this target market this marketing plan can help zona verde achieve its short-term objective to reach a $1 million sales volume in one year with a net profit of $100,000 to the company and so can hiring full-time employees see page 45 for the projected cost of hiring a full-time marketing associate moreover continuing to improve the product line through the proposed research and develop methods could even help the company achieve its long-term objective of being a $100 million company in the future this might a lofty goal to achieve but it is attainable with the proper resources and strategies in place.[close]
p. 9
appleyard and milam 9 overview of the project the purpose of this project is to develop a strategic marketing plan for zona verde cosmetics the small startup company was founded in 2008 and specializes in natural skincare products that are hempseed oil based zona verde offers 10 different skincare products through its product line including after sun aloe bath massage oil hand body lotion body butter night cream eye cream décolleté cream day cream shampoo and conditioner although zona verde products have already been introduced to the canadian market they have yet to be launched in the united states as a new company with little financial history the figures projected in this project are based on what little information can be deduced from its success thus far in canada the ultimate aim of this project is to develop a sound marketing strategy for making zona verde more profitable in the united states than it currently is in canada this is done by assessing the skincare industry as well as the internal operations and structure of the company itself to identify its strengths and weaknesses then an analysis of zona verde s current and potential customer base is performed to help determine which segments are underserved or over-served in the marketplace this helps determine which consumer segments will be the most profitable next a target market is chosen followed by a set of comprehensive marketing strategies to help reach this consumer segment effectively and persuasively developing a practical strategy for introducing selling and promoting zona verde products in the united states should help improve sales as the company expands into the american market.[close]
p. 10
appleyard and milam 10 about zona verde cosmetics parent company greenestar technologies llc owns the trademarks for zona verde in both the united states and canada however zona verde products are operated by two national entities via verde inc in canada and sister company zona verde cosmetics in the united states nonetheless the zona verde product line remains the same in each country since this project focuses on the american market zona verde cosmetics will henceforth be referred to as zona verde the zona verde skincare line offers 10 different natural products including 1 2 3 4 5 6 7 8 9 10 after sun aloe bath massage oil hand body lotion shampoo conditioner body butter night cream repair and restore eye-cream anti-wrinkle décolleté cream neck and cleavage day cream age defying all products are hempseed oil-based and are therefore rich in healthy polyunsaturated essential fatty acids omega 3 6 and 9 in fact hempseed oil has many distinctive characteristics it possesses uv protectant qualities with relatively high shielding power spf and protection factor pfa scores oomah busson godfrey and drover 33-43 another benefit of hempseed oil is that it is natural source of gammalinolenic acid gla an essential fatty acid efa resembling the natural lubricant in human hair and skin called sebum gla has been proven to help improve psoriasis eczema dandruff acne and other common skin conditions zona verde even more noteworthy is the fact that gla s are very effective in skincare maintenance but rarely found in other natural oils making hempseed oil a unique selling point[close]
p. 11
appleyard and milam that should be emphasized on the product packaging other natural ingredients zona verde uses to enhance the efficacy of its products include vitamin a b5 c and e collagen haylauronic acid and aloe all these key ingredients are discussed in depth on the company s website www.zonaverdecosmetics.com in addition to how they improve one s skin as the purest and most active form of vitamin a retinol aids in the resurfacing and rejuvenating of skin helping impart a clearer more vibrant complexion for all ages and skin types vitamin b5 panthenol is a non-irritating and hydrating vitamin that penetrates into lower skin layers and gets deeply absorbed when applied externally adding moisture and a plumping effect vitamin c is also the only antioxidant proven to stimulate the 11 synthesis of collagen a main protein in connective tissue that keeps skin looking young and firm as humans age the vitamin also provides sun protection stays in the skin for up to 72 hours and protects the skin by neutralizing free radicals which would otherwise destroy skin cells vitamin e tocopherol is an antioxidant that protects skin cells from ultraviolet light pollution drugs and other elements that produce cell damaging free radicals hyalauronic acid helps keep skin smooth and plump through its ability to hold up to 1,000 times its weight in water and to help rapidly repair skin wounds the last key ingredient aloe vera is composed of 75 nutrients 200 active compounds 20 essential minerals 18 amino acids and 12 vitamins that help to moisturize and nourish skin furthermore zona verde products are not tested on animals are paraben free toxin-free and are all hypo-allergenic zona verde see appendix d for a list of zona verde s product line.[close]
p. 12
appleyard and milam 12 situational analysis zona verde is in the infantile stage of the product life cycle the company is receiving positive feedback from consumers in canada and has been receiving repeat orders from first time customers yet more sales are necessary for the company to break even and profit as previously mentioned sales in the american market are minimal since the company has yet to be officially launched in the united states at present the canadian market is being used as a testing ground for zona verde prior to entry into the united states market an external environmental analysis of the company reveals a few key trends the company should be aware of the first trend regards strict laws on hemp cultivation in the united states zona verde currently obtains hempseed oil from suppliers in canada but with pending pressure to legalize the crop in multiple states zona verde could secure oil from the united states in the future the second trend pertains to federal regulations and complying with the rules enforced by the federal drug and cosmetics act fdca and consumer product safety act cpsa the third trend involved keeping abreast of ever changing label certifications that promote unique selling points such as natural organic and green on cosmetics products the current economy of the united states will have a huge impact on the abilities to market and grow the zona verde line volatility in the housing market and the subsequent financial crisis has led to a recession and thus imposed limits on consumer spending therefore a high-end skincare line is likely to be in lower demand as consumers may prefer lower cost goods at this time nevertheless the skincare industry is forecasted to grow over the next few years particularly in the natural and organics markets.[close]
p. 13
appleyard and milam one exciting opportunity zona verde is already capitalizing on is green consumerism this sociocultural trend has been at the forefront of youth culture for decades with the goal of 13 sustainability according to a 1987 united nations conference sustainable developments meet present needs without compromising the ability of future generations to meet their needs along with this green consumers are expressing interest in purchasing products that are non-toxic and contribute little to no harmful waste to the environment thus products made with all-natural ingredients that are biodegradable are more appealing to such consumers growing concerns regarding the toxicity levels of harsh and unnatural ingredients in skincare products as well as preservatives reinforces this idea understanding where direct competitors are playing in the market and who they are targeting as customers can better equip zona verde to make effective marketing decisions other brands competing in the skincare industry such as hempz and pangea organics for example are important to track and observe hempz represents zona verde s most threatening and direct competitor hempz sells an extensive number of hemp-based bodycare products to exclusive distributors throughout the country the company positions itself as a hip brand with three separate product lines specifically for skincare haircare and suncare beauty retailers including sephora smaller beauty boutiques and organic shops tend to offer these products in contrast pangea organics offers more premium products and prides itself on being an industry leader for green consumers however the altruistic company is more of a brand to learn from and emulate pangea organics products come in a variety of unique blends and fancy fragrances and are packaged in chic biodegradable or post-consumer waste packaging the company has generated significant groundswell through its philanthropic values and practices and has global presence in six foreign countries australia canada europe ireland hong kong,[close]
p. 14
appleyard and milam and japan through strategic partnerships.pangea organics is sold in beauty salon stores such trade secret and sephora and hip humanitarian-oriented retailers such as whole foods and anthropologie internally zona verde is equipped with sufficient resources to make its product line a 14 success however more time and effort needs to be spent on the research and development of the product line before its official debut into the american market yet a critical decision needs to be made first who should zona verde s target customers be the most lucrative and stable market long-term should be its primary focus as this consumer group will become the company s principal customer base a more succinct mission statement will help communicate the company s intention and reason for being to customers too it will also establish concrete goals and values the company can reference for direction few skincare products are enriched with hemp-seed oil fortified with other vitamins and nutrients that enhance a healthy and green lifestyle thus zona verde has substantial competitive advantages in the marketplace and unique selling points to emphasize however as recent start-up company zona verde has capital limitations the company is a side project of co-owners earl miller and earl shibou with few personnel working towards improving the products full-time therefore the company must be frugal and highly selective with its money and marketing tactics external environment political/legal one major obstacle regarding the launch of zona verde in the united states is educating consumers about the products main ingredient hempseed oil made from industrial hemp the fibrous plant is often misconstrued for it s the marijuana producing plant cannabis sativa which[close]
p. 15
appleyard and milam 15 has been effectively outlawed since 1937 by definition marijuana plants contain at least 3.0 of the psychoactive ingredient tetrahydrocannabinol thc whereas industrial hemp regulations in canada and europe enforce a thc content of less than 0.3 making it harmless nonetheless the marijuana act of 1937 classified hemp as an illicit marijuana producing plant and virtually stopped all industrial hemp production in the united states by combining it with marijuana hence hemp s drug-affiliated reputation in reality cannabis sativa is a diverse plant with over five hundred varieties and marijuana is a distant cousin of industrial hemp although this law is still enforced by the drug enforcement agency dea seven states have legalized hemp production to date north dakota hawaii kentucky maine maryland montana and west virginia the dea however is still turning down applications to grow industrial hemp in these states despite being considered a legitimate crop under the nafta agreements smith-heisters it should be noted however that restricting hemp production in the united states was a result of special interests groups such as cotton and timber to prevent the growth of the multipurpose hemp market lupien today industrial hemp cultivation production and exportation laws in canada are fairly straightforward industrial hemp need only be tested for its levels of thc 0.3 to determine whether a cultivator s crop is permitted imports of industrial hemp must be of the form stated on the license due to federal laws zona verde s main source of hempseed oil comes from canada and the company s supply contains 0.00 thc cosmetics regulations the food drug and cosmetic act fdca of 1938 regulates the testing manufacturing distribution and sale of food drugs cosmetics medicines and pesticides drugs cosmetics and medicinal devices are regulated by the fdca too with an emphasis on both safety and[close]
Comments
no comments yet