7/31/2013

MRKT200 FINAL PROJECT | Emily Luciano, Ariel Guerra, Kaitlyn McCann

Dare-Do INSTA-STYLE

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Table of Contents

TABLE OF CONTENTS 1

EXECUTIVE SUMMARY 2

PRODUCT/SERVICE 3

THE MARKET 3

COMPETITIVE ANALYSIS 4

THE TARGET CUSTOMERS 4

SWOT ANALYSIS 5

PRICING PLAN 6

RESEARCH PLAN 6

TEST PLAN 7

LAUNCH PROMOTIONAL PLAN 11

PROMOTIONAL SCHEDULE 12

LAU NCH PROMOTIONAL BUDGET 12

REFERENCES 13

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Executive Summary

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elementum neque orci, non facilisis enim hendrerit dictum. Mauris sollicitudin suscipit lectus. Maecenas hendrerit, nulla non mollis cursus, velit ante mattis eros, tempor commodo risus odio vel sapien. Fusce erat nulla, volutpat eget venenatis et, pellentesque ac orci. Vestibulum ante ipsum primis in faucibus orci luctus et ultrices posuere cubilia Curae; Proin in ipsum neque. Integer mattis nec dui ac tempus. Phasellus sed elementum nisl, ac blandit quam. Proin sagittis augue velit, sit amet fringilla diam pulvinar et. Praesent in lectus pretium, pharetra orci eget, molestie eros. Sed mattis quam vel rutrum lobortis. Donec viverra, odio id bibendum egestas, felis ipsum dignissim massa, quis sollicitudin massa nisi in neque. Quisque enim orci, varius vel est ut, viverra vestibulum mauris. Sed aliquam nulla arcu, sit amet aliquam libero ultrices quis.

Aliquam dapibus justo sit amet turpis sagittis, malesuada varius ipsum molestie. Donec tempus adipiscing sodales. Sed enim ipsum, molestie a placerat in, cursus a urna. Vestibulum placerat consectetur facilisis. Donec facilisis in augue eu volutpat. Duis eu euismod est, in sagittis lorem. Morbi sit amet est sapien. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos himenaeos. Maecenas eget ligula purus.

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Aliquam erat volutpat. Phasellus aliquet feugiat lorem, eget auctor risus molestie non. Nulla at pharetra orci. Maecenas mattis eleifend tortor, sed euismod sem mollis nec. Integer adipiscing, lectus sed egestas blandit, purus nisl lacinia tortor, eget dignissim ligula arcu at velit. Pellentesque massa arcu, elementum vitae tellus id, ornare adipiscing lacus. Vivamus vel ligula mollis, bibendum dui id, luctus lectus. Pellentesque interdum dolor non leo vehicula suscipit. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. Duis vehicula felis sit amet neque tempor lacinia. Nam a cursus risus, a lobortis orci. Suspendisse ut varius nisl. Vivamus malesuada auctor mollis. Donec eu pellentesque dolor, eu viverra nulla.

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Pellentesque dolor erat, condimentum vel porta eget, congue non nunc. Donec nec auctor erat, venenatis lobortis velit. Phasellus luctus iaculis quam nec consequat. Aliquam viverra velit diam, quis semper mauris dapibus at. Nam suscipit, arcu eget iaculis dapibus, ipsum sapien consectetur lectus, nec elementum nulla urna non urna. Praesent consectetur mauris non velit luctus, a pellentesque lectus imperdiet. Fusce venenatis at odio eget lobortis. Nulla vel nunc massa. Mauris non mi euismod, pellentesque ipsum et, commodo dolor. Nunc volutpat urna non vestibulum elementum. Praesent euismod a tellus et malesuada. Sed blandit risus felis, quis interdum ante condimentum a. Aenean non pulvinar leo, a tempor sem.

Product/Service

Are you sick of having hair that won’t do anything right? It gets frizzy in the summer, it goes every which direction, and it gets into a tangled mess? You can’t just let it air dry like your best friend and have it look perfect. Do you always have to dry and straighten it or dry then curl it? Do you wish you could just use a magic shampoo and conditioner that will style your hair for you? Well, you are in luck!

The brand new shampoo and conditioner Insta-Style does that for you! All you have to do is take a shower, pick which shampoo you want to use, and you are set for the rest of the day. There are three different sets of the shampoo and conditioner. One will be used if you want your hair to turn out straight, one for curly, and one for wavy. Simply, all you have to do is use the hair product and that is how your hair will turn out when it dries. No more hassle with the hair dryer, hair straightener, or curling iron. No more burns and no more wasting time, this product does it all!

The product that we have created is the Instastyle, it is a shampoo and conditioner that will, when used, create your hair to either be Straight, or curly. (depending on which one you purchase) To help with that annoying problem, of trying to do your hair, and have it frizzy all the time.

The Market

As the hair care market is composed of conditioner, colorants, perms, relaxers, shampoo and styling agents, one could assume that shampoo is seen as being the largest segment in the

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United States. This view is in-fact very true. According to a Marketline study done in May of 2013; statistics show that Shampoo accounts for 29.1% of the market’s total value, while its counterpart, conditioner, accounts for 18.5% of the market value (MarketLine, 2013). These statistics show promise for the Insta-Style Shampoo and Conditioner to hopefully become the markets next hottest product.

In 2012 the United States hair care market racked up a total of 1,668.8 million units sold. Although this is a high number, it is seen as a decrease from units sold in previous years; in 2008 1,769.4 million units were sold. These numbers highlight a drop in the hair care market’s units sold of 0.4%.

The hair care market, as a whole, has been seen trending on a steady decline in the United States since 2008 and according to MarketLine, continued its plunge by 0.1% in 2012. While the market value’s rate of change from 2008-2012 hit -0.9%, decreasing from $7,452.2 million to $7,180.7 million. As the top category segment, Shampoo, in 2012, constituted for $2,087.3 million of the hair care market’s $7,180.7 million value (MarketLine, 2013).

Based on these statistics, MarketLine has stated that “in 2017, the United States hair care market is [predicted] to have a value of $7,341.1 million…” which will be “an increase of 2.2% since 2012” (MarketLine, 2013). This forecast shows promise because as market value increases, so does demand. The market volume is also “forecast to have a volume of 1,647.6 million units,” which is “a decrease of 1.3% since 2012” (MarketLine, 2013).

Through research, external environmental trends have been discovered including a drastic difference in total revenues between the United States hair care market and that of European and Asia-Pacific markets. “Over [the 2008-2012] period European and Asia-Pacific markets grew with compound annual growth rates of 1.7% and 4.6% respectively…to reach respective values of $16bn and $17.3bn in 2012” (MarketLine, 2013). It was also made known that three out of the four leading companies entwined in the United States hair care market are from outside of the US; L’Oreal S.A. , Henkel AG &Co. KGaA and Unilever.

Competitive Analysis

The Target CustomersThe consumers that would buy this product are mainly females, but some could also be

males. The reason for this is that most females care about what their hair looks like and most males have shorter hair and do not style it. I am not fully ruling out males though because there are some men that care what their hair looks like and they do like to style it. The consumers are

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from any age group, but the majority would most likely be teenagers or young adults. This product would be sold only to the United States.

There are 248,067,530 white Americans, 43,213,173 African Americans, 6,138,482 American Indians, 17,676,507 Asians, and 1,332,494 native Hawaiians in the United States. These are all possible consumers to our product. To narrow it down to mostly females, there are: 125,351,477 white Americans, 22,580,483 African Americans, 3,083,750 American Indians, 9,208,460 Asians, and 664,743 native Hawaiians (American Fact Finder).

From searching on Google, one can find that the word “shampoo” is searched at a high competition. It is searched 6,120,000 times monthly on a global aspect and is searched 1,830,000 times on a local aspect (Shampoo). The word “hairstyles” is searched 13,600,000 times on a global aspect and 7,480,000 times on a local aspect (Shampoo).

According to “All about clean hygiene” responders, there are approximately 11,077,381 people in the universe that buy shampoo and the base price is 190 million (KLN Pass). This is from a direct marketing method.

To find our consumers, we will advertise the brand in a few different ways. In a Teen magazine “Girls Life” we are likely to get 350,093 teenage girls to see our product (Girls Life). In a newspaper in Orlando Florida, we would be likely to get 229,578 people per day to see our ad (Hometown News). In a consumer national website about hair where people can find out anything about hair products we could get 165,466 views (Hair Finder). In Dallas Texas, a beauty section in a newspaper would get about 21,728 views on an average weekday (People Newspaper). For a business publication in cosmetics called “Happi”, we could get 16,431 views. Overall, all of these would be great places to have ads to target our main costumers.

SWOT AnalysisStrengths

• Convenient

• Time-efficient

• Easy to use

• Many hairstyle choices

• Pleasant aroma

• Don’t need to spend money on hair electronics – straighteners, curling irons, etc

• Good for all ages

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Weakness

• More expensive than regular shampoo and conditioner

• Only certain types of styles (less originality)

• Mostly gender specific

Opportunities

• Celebrity endorsement

• Research finds hair electronics to be unhealthy

Threats

• Economy crashes

• Consumers enjoy doing their own hair rather than having a product do it for them

Pricing Plan

Research Plan1. Will the costumers be turned off by the product because of what it smells like?

i. Essentially there will be different chemicals in the product since it will be “styling” the costumers hair for them and thus the product may smell different.i. Method: Focus Groups

ii. Price: Focus Groups at $5,000 each (Total: $15,000)

2. Will the Design on the label be enough to entice new customers to purchase the product?i. Although the saying goes: “never judge a book by its cover” most people do

pick items to buy based primarily on how they look.i. Method: National Survey

ii. Price: One National Survey at $15,0003. Consumer Interest?

i. Will people actually want to have their shampoo/conditioner style their hair for them or will they still want to do their hair themselves so they don’t lose the unique aspecti. Method: conduct focus groups to ask mainly girls and a few guys of all

ages various questions to see if they would use the productii. Price:3 Groups, at $5,000 each

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(Total:$15,000)

Total cost: $45,000

Test PlanFor our Product, Insta-Style, we will be using the Online Test Plan.Online Test Plan:

The first step in the Online Test Plan is to purchase a URL, or Domain Name, this will be the website address of the product.

o We will purchase the URL www.insta-style.com through www.DomainDiscover.com.

To purchase the domain name costs $11.98/yr.o We have decided to purchase a 2 year term at $23.96

We plan to hire Sullivan and Wolf Website Design to design our product website and online storefront. (http://www.sullivanandwolf.com/website-estimate/)

o On their website they have a “Site Design Estimator” which we have used to estimate the cost of hiring Sullivan and Wolf Design for around $70/hour with an estimated 66 hours.

o Our Estimate ID is: 204135728o The Web Site Design Estimator used information including:

Step 1: General Information What is your company’s industry?

o B2C – other How big is your company?

o 10-50 employees Is this a rush job (2 months or less)?

o No Do you have an established Corporate Identity?

o No Do you tend to be fussy or easy going?

o Tend to be involved Step 2, Part 1: Pages

How many regular sized pages will there be?o 11 Including:

Homepage (1) With flash splash page including product

images and people’s response photos to our products(a PR campaign idea)

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Store Page with Item images (1) Items 9: Straightening Shampoo,

Straightening Conditioner, 2-Pack Straightening Shampoo AND Conditioner; Curling Shampoo, Curling Conditioner, Curling 2-Pack Shampoo AND Conditioner; Voluminous Shampoo, Voluminous Conditioner, 2-Pack Voluminous Shampoo AND Conditioner

Item Description Pages (9) Items 9: Straightening Shampoo,

Straightening Conditioner, 2-Pack Straightening Shampoo AND Conditioner; Curling Shampoo, Curling Conditioner, Curling 2-Pack Shampoo AND Conditioner; Voluminous Shampoo, Voluminous Conditioner, 2-Pack Voluminous Shampoo AND Conditioner

How many short pages will there be?o 5 Including:

Login/Create Account Page My Account page

Where customers can sign up to receive information from our company regarding our products.

Also where customers can save their personal information, shipping address and billing information

o Can connect through Facebook. About Page

Mission Statement Contact Us Page

This would include Company Address for mail, Physical Address, Phone Number and Email Contact Form.

Social Media How many long pages will there be?

o 0 Step 2, Part 2: Copy

How many pages need to have copy proofed by us?

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o 0 How many pages will need copy to be written by us?

o 0 Step 2, Part 3: Forms

How many inquiry forms?o 1

This form will be placed on the “Contact Us” page and will be used for quick email comments or concerns

How many long forms are there?o 0

Step 3, Part 1: Applications Fourm

o No Calculating Order Form

o Yes Blog

o Yes Banner Advertising

o No Site Search

o No Step 3, Part 2: Password Protection

Do you require a password protected area?o Simple system, few users, one group

Noo Complicated system, many users

No Step 4, Part 1: Interface Design

Do you want a simple interface or a complicated? o Normal

Step 4, Part 2: Typesetting Do you want basic typesetting or advanced?

o More Advanced Step 4, Part 3: Home Page

Do you want a basic home page or advanced?o More Advanced

o Our complete total to hire Sullivan and Wolf Website Design is $4620

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In order to create an online storefront to be included in our website we will use the free Ecommerce Express package from Mercantec. (www.mercantec.com/google/index.html)

o Some specific features that we will be using include: Item Editor Sales Tax Shipping Coupons Order Viewer Amazon Payments, Checkout by Amazon eBay “Fixed Price” listing service Google Product Search/Google Base Listing Service Google Analytics E-Commerce tracking/statistics FDIS/LinkPoint (direct credit card processing) Accept all major credit cards Shopping Cart Snippets BUY NOW Button Snippets Compatibility any website

This was a big point for us since we have chosen for a Design Firm to create our website.

o As stated above, the price to use the Ecommerce Express package from Mecantec is free.

We plan to host our website through GoDaddy. (www.GoDaddy.com )o We are purchasing the Economy Web Hosting at $35.88/yr. for 2 years, which is

the same term as chosen for our domain name. The Economy Web Hosting has these features:

Unlimited Bandwidth 1 Website 100 GB Disk Space $100.00 Google AdWords Credit $50.00 Bing Ads Credit $50.00 Facebook Ad Credit

The total cost for 2 years is $71.76o Through GoDaddy we are also purchasing standard SSL, Secure Sockets Layers.

This provides communication security over the Internet. This will cost $59.99/yr., which we have also purchased for 2 years. Total Cost: $119.98

o Our total cost at GoDaddy.com is $191.74. Although the Economy Web Hosting package from GoDaddy.com comes with $100

Google AdWords Credit we plan on purchasing an extra $400 to ensure that we have plenty of views and purchases for the 2-month test period.

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o Our Google AdWords total cost will be $400

Launch Promotional Plan

Overall, we plan to use newspaper ads, magazine ads, radio station ads, internet, and publicity to advertise our product. Our total amount that would be spent in one year is $1,216,016. This is a lot of money, but it is necessary to compete with the other top shampoo and conditioner selling companies such as Pantene.

Most of our advertising will be done around the summer months because that is when most girls have problem with frizzy hair. It is also the time of the year where girls want to be able to do their hair fast and not spend too much time on it. The newspaper ads will be sent out in the earlier months to attract some preliminary attraction while the magazines, radio stations, internet, and publicity will take full swing in the summer months.

The magazine ads will be our biggest advertisement because we will use an entire page white black background and splashes of color. The costs for the magazine and other advertisements are shown in the table below. Beyonce was chosen for our celebrity in a commercial because she can make her hair look very frizzy and then look very well done. She is the perfect example for our product and she is also famous and will drag many women into buying our product.

Instastyle will also be shown on Ellen and Good Morning America to get the product on national television. They will have people use the product on the show and show before and after shots of them to prove that it works.

The product will also be on four different radio stations so it will be span across the entire United States. Each station is in a different area of the US and it will be beneficial for everyone to hear about the product.

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Promotional Schedule

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecNewspaper Ads

Orlando NewspaperDallas TexasNew York Times

Magazine AdsSeventeenGirls LifePeople

Radio Stations AdsLos Angeles Kiss 102.7Z 100 - New YorkStar 94 - SouthXM 20 on 20

InternetWebsite/Search Engine

Publicity (general)Beyonce Commercial

Publicity Events (List them)Good Morning AmericaEllen

2010

Launch Promotional Budget2011 2012 2013

Newspaper Ads

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The Orlando Times $2,331 increase decreaseDallas Peoples Newspapers

$8,210 increase decrease

New York Times $2,175 increase decreaseMagazine Ads

Seventeen 145,155 increase decreaseGirls Life $27,135 increase decreasePeople $79,100 increase decrease

RadioLos Angeles Kiss 102.7 50,000 increase decreaseZ 100 - New York 50,000 increase decreaseStar 94 - South 50,000 increase decreaseXM 20 on 20 50,000 increase decrease

InternetWebsite/Search Ads 2,000 increase decrease

Publicity (general)Beyonce Commercial 250,000 increase decrease

Publicity Events (List them)Good Morning America

250,000 increase decrease

Ellen 250,000 increase decreaseTOTAL $1,216,10

6 (All values taken from: "KLN PASS User Login." KLN PASS User Login. N.p., n.d. Web. 27 July 2013. <http://next.srds.com.navigator-lhup.passhe.edu/nmp?newsess=y>.)

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References"American Fact Finder - Results ." American FactFinder - Results . N.p., n.d. Web. 16 July 2013.

"Girls Life Magazine." KLN PASS User Login. N.p., n.d. Web. 22 July 2013. <http://next.srds.com.navigator-lhup.passhe.edu/nmp/search/open/4588-media-5479?mc=y>.

"Hairfinder." KLN PASS User Login. N.p., n.d. Web. 22 July 2013. <http://next.srds.com.navigator-lhup.passhe.edu/nmp/search/open/4599-media-5492?mc=y>.

"Hometown News." KLN PASS User Login. N.p., n.d. Web. 22 July 2013. <http://next.srds.com.navigator-lhup.passhe.edu/nmp/search/open/4592-media-5484?mc=y>.

"KLN PASS User Login." KLN PASS User Login. N.p., n.d. Web. 22 July 2013. <http://next.srds.com.navigator-lhup.passhe.edu/nmp/search/open/4575-media-5465?mc=y>.

"People Newspaper." KLN PASS User Login. N.p., n.d. Web. 22 July 2013. <http://next.srds.com.navigator-lhup.passhe.edu/nmp/search/open/4592-media-5484?mc=y>.

"Shampoo." Google Adwords. Google, n.d. Web. 16 July 2013. <https://adwords.google.com/o/Targeting/Explorer?__c=1000000000>

www.DomainDiscover.com

http://www.sullivanandwolf.com/website-estimate/

www.mercantec.com/google/index.html

www.GoDaddy.com

http://next.srds.com/media-data/print-media-production

MarketLine. (2013). Haircare Industry Profile: United States. Datamonitor.

MarketLine. (2013). Haircare Industry Profile: United States. Datamonitor.