MASTERS DEGREE MARKETING HELP

Assignment 1: Part A: The Bachelorette Marketing Plan

July 29, 2017

Introduction

The Bachelorette L.L.C. is a company that deals in beauty products, initially female. Beauty products are increasingly becoming popular by the day among ladies (Willett, 2010). The company is a world leader, with global presence in the industry. A range of products are on offer, including hair care, color, and skin care and signature fragrances. The unmatched quality of products and consistency in customer service globally have made the Bachelorette a direct competitor of well-known brands such as Olay, Avon and L'Oreal among others (Forbes, 2017).

Based in Philadelphia, United States, with regional offices in Asia, Europe and Africa thanks to the growing market share. The company will be backed with online selling through an intuitive website, simple and secure. In addition to scaling operations worldwide, the company continues to diversify its products portfolio and recently launched hygienic products for men.

PESTEL Analysis

Political Factors

The political environment affects the business operations. More so, the success of an organization is pegged on the political climate (Kotler & Keller, 2012). The Bachelorette will be hesitant to maintain operations in politically unstable regions. Europe, Asia and Africa were keenly selected based on stability. In addition to that, the Bachelorette has had to adopt hybrid corporate approaches to accommodate the political differences (Kaser, 2013). However, the close ties between the United States and other countries have created a conducive environment for business.

Economic Factors

Economic conditions such as the inflation rate, which largely influence the interest rates and consumer's purchasing power could impact business for an international company. Since the Bachelorette operates globally, global economic cycles and may impact sales (Pride & Ferrell, 2016). In regions such as Europe, the company continues to post profits owing to the economic stability. The company is also in a good position to obtain loans locally, thanks to the well-established financial institutions in Philadelphia. The money may be used to expand the business.

Socio-cultural Factors

Consumer tastes and preferences are influenced by the local culture. The products the company offers should therefore be tailored to the different cultural and climatic conditions (Kaser , 2013). The varying and rapidly changing needs of women should be well addressed, while the desires of customers from different ethnic backgrounds and classes should be met.

Technological Factors

Technology is rapidly changing, and the beauty and cosmetics industry is no exception. Through technology, consumers are exposed to many products at the click of a button and therefore, innovation is vital to survive and remain competitive (Stevenson, 2016). Aggressive social media and affiliation marketing in combination with more research and development budget allocation will set the Bachelorette atop the competition.

Legal Factors

The Bachelorette's products should adhere to all quality and safety standards outlined by the Food and Drugs Administration (FDA). Internationally, the products shall meet all the required regulations after obtaining the operating licenses.

Primary and Secondary Target Markets

Initially, the Bachelorette focused more on hair care, fragrances, and skin care and color cosmetics. The company targeted primarily ladies, trendy and fashionable, and potential buyers. Ladies are likely to buy because they are more concerned with make-up and beauty products. Sales are the bigger chunk of the total revenue for the company. Thanks to competition, the company also targets men, having diversified the product portfolio.

In addition to that, the company targets retail chains in the United States. Standalone beauty parlors and salons are also a vital source of revenue (Munier, 2011).

The Customer component basically comprises both ladies and gentlemen who consume beauty products and cosmetics, not only in Philadelphia and the United States but across the world. The company component consists of its prime location, unmatched quality, and unparalleled customer service and above all, competitive prices. Besides individual customers, the company supplies to shops and retail chains. In terms of collaboration, the Bachelorette works closely with brand consultants, advertising agencies and suppliers to ensure a smooth supply chain and company image, a recipe for higher sales volumes (Best 2013). Regarding competitors, the Bachelorette has heavily invested in research and development to frequently innovate to develop new and improved products. A sound marketing strategy will keep the company ahead of competition.

In terms of STP, market segmentation is mainly based on gender and age. The young tend to be trendy and fashionable while the old are business-minded. Ladies tend to use more of the beauty products compared to men. The company targets mostly ladies of the middle age and between middle and high income classes. Being located in Philadelphia, a prime location, the company is better placed to reach the larger United States and beyond.

The marketing mix consists of the product, price, placement and price. The product policy is growth oriented, which focuses on expanding the product portfolio while consistently delivering quality. In so doing, the company will grow its customer base in the ever changing industry (Kotler & Keller, 2012). Consumers desire value for their money. The company's prices are centered on three facets: comparison to competitors; price mobility; and price diversification. The price model is flexible enough to accommodate the target customers and to not to eat into the company’s profits. The placement of the company and its regional focal offices achieve a balance between supply and distribution of the products. Direct distribution is used through sales agents in the various regions. Promotion is key. The company utilizes digital advertising, especially social media marketing with some celebrity endorsements. Engaging customers in such ways ensures wider market reach.

Short-term and long-term goals

Profitability and growth is the desire of any profit-making, competitive firm. In the short term, the Bachelorette wants to see the brand become a household name across the world through aggressive advertising with the help of a consultant within 6 months. It is also desired that the company's distribution system become more efficient so that customers access products promptly. The company also pursues social corporate responsibility through employee reward programs and charity. Last but not least, is to get to know customer perceptions about the products and the company at large to help boost value co-creation and enhance the brand image.

In the long-term, the Bachelorette aims at gaining more market share in the industry given the strategies in place to wade off competition. The strategies include customer retention by building rapport and responding to customer feedback promptly.

Measuring the goals will help check the progress of achievement. Web statistics such as traffic and the conversion rates will tell a lot about the success or failure of the advertising strategies and market growth. Customer feedback will also inform how famous the brand is known among consumers. The company's profits are also an important measure of company performance towards the goals.

SWOT Analysis

The Bachelorette is an international company dealing in beauty and beauty-related products. The decision to spread wings globally was informed by the desire to mitigate risks inherent in the local market (Pearce & Robinson, 2013). Among others, one of the biggest threats is counterfeiting. The table below summarizes the SWOT analysis.

References

Best, R. J. (2013). Market-Based Management: Strategies for Growing Customer Value and Profitability (6th Ed.). Upper Saddle River, NJ: Pearson Education Inc.

Forbes.com (2017). Top 10 Beauty Brands. Retrieved July 29, 2017 from https://www.forbes.com/pictures/lmj45jdlf/no-2-avon/#4b75b1032b88

Kaser, K. (2013). Advertising and Sales Promotion. Mason, OH: South-Western, Cengage Learning

Kotler, P. & Keller K. L. (2012). Marketing Management (14th Ed.). Upper Saddle River, NJ: Pearson Education, Inc.

Munier, N. (2011). A strategy for using multicriteria analysis in decision-making: A guide for simple and complex environmental projects. New York: Springer.

Pearce, J. A., & Robinson, R. B. (2013). Strategic management: Planning for Domestic & Global Competition (13th Ed.). New York, NY: McGraw-Hill

Pride, W. M. & Ferrell, O. C. (2016). Marketing (18th Ed.). Boston, MA: Cengage Learning

Stevenson, W. J. (2015). Operations Management (12th Ed.). New York, NY: McGraw-Hill Education

Willett, J. A. (2010). The American beauty industry encyclopedia. Santa Barbara, Calif: Greenwood.