3 page distribution plan

Target Market

The target market for the sleep aid product is health-conscious parents with children older than 3 who are looking for an all-natural medicine to help their child sleep better. These target shoppers are aware of the potential harmful side effects of conventional sleep aids, and are searching for a safe alternative to these types of medicines. Much like organic shoppers, this type of clientele values the use of natural ingredients and is willing to make decisions based on the drug’s lack of synthetic ingredients more so than the medicine’s overall effectiveness of helping the child sleep. Due to this decision-making characteristic, our target consumer is middle to upper class (willing to spend more for a product that does the same thing).

Competition

Market Analysis:

The global sleep aids market was valued at $58.1 billion in 2014. According to research, the market is projected for a value of around $80.8 billion by the end of 2020. During this six-year forecast period, the global market for sleep aids will expand at a moderate CAGR of 5.7%. With growing demand for medications that help quality sleep, the market for sleep aids is witnessing steady growth. However, consumer concerns about side effects will limit the growth.

GlobeNewsWire. Global Sleep Aids Market Will Reach US$80.8 Bn by 2020: Persistence Market Research. https://globenewswire.com/news-release/2015/07/31/756724/10144080/en/Global-Sleep-Aids-Market-Will-Reach-US-80-8-Bn-by-2020-Persistence-Market-Research.html

The United States pharmacological treatment market for sleep aids is projected to reach $4.24 billion by 2021 from $3.38 billion in 2016, growing at a CAGR of 4.6% from 2016 to 2021. The over-the-counter (OTC) sleep aids segment of the United States insomnia pharmacological treatment market is expected to grow at the highest CAGR during the forecast period. Reasons attributing to the growth of this market include easier availability, low prices, and publicity regarding the side effects of the prescription sleep aids has also steered the patients towards OTC sleep aid.

Sleep Review: The Journal for Sleep Specialists. OTC Sleep Aids Expected to Grow More Quickly Than Prescription Sleep Aids. http://www.sleepreviewmag.com/2017/02/otc-sleep-aids-expected-grow-quickly-prescription-sleep-aids/

The global herbal supplements and remedies market is forecast to reach $107 billion by the year 2017, spurred by growing aging population and increasing consumer awareness about general health and well-being, according to a report from Global Industry Analysts. Additionally, the fact that herbal supplements and remedies cause little or no side effects and provide greater efficacy is also proving to be a major factor aiding market growth.

Nutraceuticals World. Global Herbal Supplement Market to Reach $107 Billion by 2017. http://www.nutraceuticalsworld.com/contents/view_breaking-news/2012-03-07/global-herbal-supplement-market-to-reach-107-billion-by-2017/

Competitors:

Price: We will offer our product in the $3-$3.15 per 10 doses range. This positions our product in the middle of the organic OTC drugs. At this price point, there are only two other cheaper options Children’s Sleep and Simply Sleep), one of which is not organic. Also, offering the product at this price will allow us to promote fast sales once commercialized by allowing for coupons, rebates, or general price drops to encourage new users to try the product.

Promotion: In addition to sales promotions to encourage sales growth, our advertising will be focused on grabbing the eyes of our health-conscious parental targets. Printed ads will be found in magazines and websites like: Parents, Healthy Living, Hip Mama, Organic Lifestyle, Naked. We will also study and imitate the marketing habits of essential oils manufacturers, as this industry has experienced rapid growth with our target shopper.

Place: Our sleep aid product will be available in most big box department stores (WalMart and Target), big box pharmacies (CVS and Walgreens), and various organic websites. The placement idea is based on the shopping habits of our target consumer, which are considered normal middle/upper class adults.