1. Terms of Reference
This is a detailed marketing plan for Benefit to increase market share in its existing market segment. In order to do this, the market and the company’s position in the current market will be analyzed and from this, a marketing plan will be developed and actions to be taken will be set.
2. Executive Summary
This report will examine the company as it is now and identify it’s strengths and weaknesses. After setting out targets for the company, a strategy will be employed to help meet objectives. This report considers how best to help grasp opportunities and become a leading competitor. A marketing plan is developed and decisions are made in respect to strategy and implementation of the idea.
3. Business Mission
To offer ‘feelgood’ beauty to women of all ages with products which are irresistible, fun and uniquely problem-solving. To develop a strong bond with consumers to enhance brand loyalty.
4. External Marketing Audit
In the UK, animal testing for cosmetics is now fairly uncommon. However in the US, there is evidence to suggest that animals are still being tested on. Laws may be imposed which prevent animal testing, which could alter the progressions in new products which can be developed due to the limitations of chemicals we can use.
The demand for products that are organic and made of natural ingredients is on the increase. This means that the company may need to consider how this affects their consumers and then introduce a range of products, which meets the market’s new demands. The demand for “green” packaging is also becoming more popular, using environmentally friendly production techniques using and packaging which decomposes or can be recycled easily. This also offers an “added feel-good” value to the product.
Rise in interest rates from 5% to 5.25%, the third rise in three months. The increase means that mortgage repayments are higher so people are more likely to save than borrow, so they have less disposable income. This means that they are less likely to buy luxury items such as make-up.
Unemployment rate in the UK in 2005 was 4.7% (2005 est.) (CIA World Factbook, 2006) Although it has been quite high for recent years, it is unlikely to have a significant impact on Benefit because the target market segment is higher income earners. Moreover it could affect other parts of the economy i.e. interest rates and inflation which vary the amount of income assigned to non-essential items.
In the current “broadening of culture” within the UK: the introduction of wider ranging religions, of which some prohibits the exposure of the skin and wearing of make-up. This means that there could be a substantial shift to lower make-up usage within some ethnic circles. However other social trends in the UK with girls of younger ages using make-up offers a new youth market to explore. Also there is a huge shift in male grooming habits, and it is becoming more acceptable for men to use cosmetics which could be another potential target market to investigate. There is a trend in lifestyle changes for women aged 25-34. They are starting families later on in life and making their career a priority. This means that cosmetics are continuing to be an important part of their lifestyles for a longer period and they have a larger percentage of disposable cash to spend on luxury items such as cosmetics.
The increasing popularity of plastic surgery and Botox® injections reduces the need for make up, however the increasing figures do imply that more and more women are becoming obsessed by their appearance and taking more extreme measures to improve the way they look.
According to research reports by Keynote, British people spend more than £10bn a year on beauty products. In 2005, retail sales of cosmetics and fragrances increased in value by an estimated 6.7% to £1.7bn at...